The first and only unwritten rule of business expansion – never stop investing money in it. If done wisely, it will deliver favourable results and aid businesses to survive a tough economy.
Irrespective of the venture type, market competition and stringent financial scenarios become the part and parcel of any entrepreneur. This invariably leads to instances of cash flow deficiencies and thereby a setback to the normal functioning of a business.Result?
Scenario 1 – Business owners take drastic steps to keep it growing, may sometimes misfire.
Scenario 2 – Wise men, however, plan and manage their course of actions depending on market conditions and come out as the real “survivors.”
In this respect, a business loan for engineer has often proved to the silver lining for such “survivors” in providing their venture with the necessary financial backing. Now, you may ask, “A loan is a liability. So, how can it help in eradicating the tough times?”
Well then, let’s discover the possibilities:
During financial crises, the primary recovery step undertaken by any venture must be the elimination of existing debts. Embracing a loan for engineer, not only aids in making a venture independent of financial liabilities, but also ensures a steady flow of working capital.
2.Creating alterative production units
A bearish market is predominantly caused by the failure of a certain product or commodity in the market. Thus, developing a new product capable of bringing considerable ROI can aid in shifting the company stocks to a bullish graph.
When revenues are down, keeping a constant cash flow to the business for addressing the daily activities can be tough. So, with a business loan for engineer, one can ensure that he/she caters to the working capital needs of the company.
4.Receive financing against unpaid invoices
Often economic constraints may occur due to the accumulation of unpaid invoices from the customers’ end. Hence, an engineer loan in such situations can suffice to the payable salaries of employees, restocking of inventory as well as buying and mending new and existing equipment.
Factors to consider before availing a loan for engineers –
So, while you have already sorted out your plans of recovering your venture through a loan for engineer, ask yourself the following questions before signing off the final deal.
●What are the eligibility criteria?
Multiple financial institutions pose a myriad of conditions, sufficing to which will allow you to avail a loan from them. However, being an engineers’ loan, the following points emerge to be imperative:
a)Either you are a consultant or a self-employed engineer.
b)You are between 26 – 65 years of age.
c)At least 5 years of company vintage or at least 3 years of experience as self-employed must be present.
●Is the required loan amount being sanctioned?
Contacting a lender that does not agree to pay off your required loan amount is spite of having a credible CIBIL score must be avoided. The times of economic crisis call for immediate and significant monetary support.
So, perform a thorough market survey, provide the necessary documents for engineer loan that suffices your monetary needs precisely.
●Are EMIs too high?
Stiff repayment tenors, in turn, make it problematic for an applicant to pay off the loan within the stipulated period owing to high EMI amounts.
Reliable lending institutions like Bajaj Finserv also provide a flexible repayment tenor of 12 – 72 months for salaried engineers and 12 – 60 months for their self-employed counterparts. So pay as per your convenience and forget about high EMIs.
In addition to this, check for the mandatory documents required by the concerned lending institution along with their disbursal and turnaround time. So, without any delay, take the necessary steps to avail a business loan for engineer, and rescue your business from the dwelling financial crisis.