Do you feel that your business growth is getting stagnant? Avail a loan against property and outpace your competitor. Find out how a LAP can help you grow.
Here’s a fundamental truth of Business: You need surplus cash to grow your business to the next level. This applies to organizations of all sizes. Whether you’re a sole proprietor, partner, a start-up, a limited liability company or a public venture, you’re gonna need cash if you want to expand the potential of your business.
It’s Difficult to Raise the Capital to Fund your Business Expansions
And, the bottom line is that it’s quite difficult for businesses to raise cash for expansion from day-to-day operations. With mounting procurement charges, labour costs, and a multitude of other expenses, business owners are often left without the requisite capital to enhance their business.
This is where a Loan against Property comes in. Shortly called as a LAP, it’s a loan offered by banks and other NBFCs (Non-Banking Financial Corporations). It’s a secured loan meaning you offer collateral to avail it. For instance, if you already own property or other real estate assets, you can use it as collateral to avail LAP.
Now, arises the big question, why is a LAP better than a Personal Loan or a Business Loan?
Here are a few reasons why you should choose LAP if you want to expand your Business
- Cheaper – An LAP is more affordable when compared to other loan products. The interest rates are around 10-13% per annum, which is way lower when compared to the interest rates on business loans and personal loans.
- Longer Tenure – While the maximum tenure for paying off your personal loan is five years or less, the repayment period for a LAP is anywhere from one to fifteen years.
- Quick Processing Time – This one is a big plus. There are plenty of situations in business when you need instant cash. Instead of the lengthy processing time for other loan products, a LAP is processed quickly, and you can avail the loan amount within a few working days.
Now, that you are aware of the benefits of a LAP, let’s take a look at how you can use the loan amount to grow your business.
- Purchase Inventory
As a small business, you will require extra funds to meet the demands of peak seasons. You can use the loan amount to purchase inventory, improve sales, thereby to boost the overall turnover and revenue.
- Upgrade to Newer Equipment
One of the biggest drawbacks of small to medium scale businesses is that they are unable to upgrade their equipment; thereby they aren’t able to make the best use of latest technology. Purchasing new machinery and tools require capital, and you can use the amount availed utilizing a LAP for this purpose.
- Smooth Cash Flow
The cash flow of small to mid-scale businesses isn’t all that smooth. There are several ups and downs in a particular year. Don’t let your uneven cash flow impact the overall operation of your business. You can use a LAP to cover your financing needs.
- Cover Payroll
Is your business experiencing unusually slow seasons? Not able to cover the payroll of your employees. Use a LAP to ensure that your employees receive their pay, irrespective of market conditions. This not only boosts the trust of your staff but also helps you retain skilled employees.
- Expand your Offerings
When you have the necessary capital, you can improve your market cover by offering new products and services. You can even expand your business to further markets by opening additional branches and offices.
- Launch an Intensive Marketing Campaign
Unlike big corporations that have deep pockets to fund marketing campaigns, small businesses don’t have the resource or capital. Use the loan amount to establish your brand name.
- Jump on Timely Opportunities
You would have heard the saying, “Opportunities knock only once.” This is very true for small businesses, which don’t have the sufficient capital to grab timely opportunities. But, with a LAP you get funding on-hand that helps you grow your business to the next level.
Don’t let your need for cash strap your business opportunities. Avail a LAP today and watch your business move on the fast track.