Mumbai, India’s commercial and financial capital, is a major contributor to the country’s GDP. The capital of Maharashtra has ample growth opportunities in manufacturing, technology, retail, construction, food, tourism, entertainment, and other sectors. While planning to expand their business, one can easily get a business loan in Mumbai for various purposes. Several NBFCs provide SME loans in the city without any collateral requirements and end-use restrictions.
Here’s how to best use a business loan for business expansion in Mumbai.
Fund Operational Costs
Every business needs to cover expenses for daily operations, like paying the rent, staff salaries, utility bills, raw materials, etc. While looking for business expansion, a company must be ready to see an increase in these operational costs. For example, while planning to open more retail branches in Mumbai, they must spend money on shop space, more staff, lighting, interiors, air conditioning etc. An MSME Loan of Rs 50 lakh from reliable lending institutions can help finance these costs to support business expansion.
Lease or Buy Specialised Equipment
Many businesses require specialised equipment for manufacturing, production, delivery, etc. Most of this equipment is expensive and needs finance to keep the outlet well-equipped. Rather than spending, some business owners also decide to lease the required equipment, which again needs substantial capital. In such cases, funding the latest equipment or machinery with a business loan can help a company become more productive and cater to its customers’ needs.
Aspiring borrowers can use a business loan eligibility calculator to see how much they can borrow and evaluate the required expenses to decide on an adequate loan amount. Most importantly, the business loan interest rates are reasonable, and these loans do not need any asset to serve as collateral. Moreover, borrowers have the option to repay the loan in budget-friendly EMIs.
Fund Specific Needs and Hire Skilled Workforce
Hiring a skilled workforce is mandatory to increase a company’s profits and productivity. For instance, a retail store in Mumbai needs experienced salespeople, tech-savvy cashiers, and other experts to sell the products effectively. They also need trained customer representatives to keep their customers satisfied and resolve their issues. While hiring skilled staff reduces turnaround time, a business loan in Mumbai can help financially.
Get Business Online
Most successful businesses have an online presence, and surviving and expanding without digital compatibility will be challenging. For instance, retail stores require a website or app to take orders, accept payments, advertise, and deliver products. A company needs SEO experts, web designers, social media executives, and other specialists to go online. Small & medium scale companies may also outsource their web hosting and digital marketing projects. That requires finance that may stretch the company’s sales revenue. An MSME loan is an ideal funding source in such a situation.
Diversify the Product or Service Line
Diversifying the product or service line and introducing new offerings allows the business to expand its sales revenue. However, they need capital to spend on marketing costs, purchasing new machinery or equipment, marketing costs, research and development, etc., for that purpose. For example, apart from selling groceries, a store owner may want to start selling dairy products. Business owners will need extra funds to research and understand the market to see if consumers demand these products. In case of positive results, the firm owners can move on to buy the required machines and equipment, hire new staff, spend on marketing, etc. A MSME loan will help do all that and much more.
Invest in Marketing
Even the best business with top-quality products may only succeed if it reaches its target customers. That is why marketing is an essential part of operating a firm successfully. There are different mediums for marketing a business, including online and offline. Email marketing, referral marketing, social media marketing, B2B and B2C marketing, etc., are the most efficient strategies for spreading the word. However, firm owners will need to hire specialised experts to market their businesses. That is when a business loan provides the necessary funds. Rather than taking marketing as an expense, treat it as an investment, as it eventually helps reach target customers and increase sales and revenue.
Since an MSME business loan gives the financial freedom to cover various expenses, entrepreneurs can efficiently use it to propel their growth in Mumbai. The best thing is that these are collateral-free loans that do not require collateral security or a guarantor. Eligible entrepreneurs can apply for a business loan on the website of top lending institutions like Clix Capital and get up to Rs 50 lakhs at best interest rate with flexible repayment tenure of up to 36 months without collateral.
