Owners involved in any industry can avail business loans, be it manufacturing, trading or services. It also can be easily customised to meet the business needs of any industry. In a services industry, there is often a lag in project delivery and collection of fees. This leads to a financial crunch for taking on new projects. However, in today's ever-changing business environment and cut-throat competition, you can't afford to let go of an opportunity simply due to lack of funds.
To bridge this gap in cash flows and ensure that business continues to run smoothly, a business loan is an ideal solution. Here’s how it can benefit your consultancy and help it grow and expand:
- Timely availability of funds - Timing is highly important in seizing a business opportunity. Other methods such as obtaining funds from investors or venture capital firms are a lengthy process. Also, you do not have much control over the timing of funds receipt; it could take months. On the other hand, a business loan is a hassle-free process and can let you have greater control over the disbursement of funds. Thus, you can plan and execute your projects better.
- Access to specialised skills and expertise - Financial institutions have Relationship Managers specialised in the types of loans. They will spend time with you in understanding your business model, finance requirements and offer you a customised loan that has additional features and benefits. They may also be able to foresee funding requirements that you may not have factored.
- Can meet financial needs of any size - When the financial requirements of your business are relatively smaller, it can be quite challenging to find an investor. General investors wouldn’t be too keen on a minor stake. Surrendering equity for a smaller sum wouldn’t be a prudent decision. With a business loan, you can apply for whatever sum of funds you need as per your business requirements.
- Flexibility in repayment – These kinds of credits allow you flexible repayment options. You can enjoy an affordable interest rate as well as a longer loan tenure. This allows you to focus better on growing and expanding your business.
- More control - When you obtain funds from investors or venture capital firms, you would have to trade a stake in your business. You would also have to involve them in your strategies, decisions and management. In such a situation, you may have to compromise and not be able to execute your vision. On the other hand, when you opt for a business loan, you have absolute control over your business and can lead it without any intervention.
A business loan can be availed by any owner, even one providing consultation services. There are numerous benefits of opting for it such as to grow and expand your consultancy. The application process, too, is hassle-free and quick. It is recommended that you approach a reputed financial institution so that you can benefit from the best terms offered.