Working capital helps in smooth running of daily business operations like payroll, production costs etc. Thus keeping solvency in business and uninterrupted production flow
• Keeping goodwill
When your current liabilities and expenses are paid on time and you don’t have multiple pending debts on market it enhances your goodwill. This in long run enhances your credibility as a company and also increases your credit score.
• Easy to get loans
As an enterprise when you have a good working capital along with minimal market dents getting loans in future becomes easy.
• Smooth sailing of operations
When all daily expenses are covered under a working loan the daily production and operations runs smoothly.
What are the different avenues for business loans?
Now next after having a working capital comes the need for business loans. Whenever the term loans come into play, always remember that there are two broad categories for loans. The secured and the unsecured types. Now the different avenues an entrepreneur can take for fetching capital includes:
• The secured type where some collateral security or lien is given.
• The unsecured type doesn’t need any security however the interest rates are high in such cases.
• Although these are two of the most popular types of loans an entrepreneur can also take business cash advance. This one doesn't need any high credit score collateral. Any business which takes credit card as a form of payment can opt for this form.
• Try crowdfunding: There are some instances where crowdfunding sites can pledge over thousands of target audiences over various start-up projects. However remember that crowdfunding is always a short time fundraiser.
• Get an investor: Investors are persons or agencies who can finance your business to a great deal. However with raising competition and increasing inflation the market penetration is getting thicker. The three golden rules for investor pitching always stays golden. Which are:
Be as succinct as possible
Avoid unnecessary professional foiling and jargons
Add your experience and know what you are doing
Another great way of rendering money is by asking private lenders. Some of the genuine money lenders with industry standard interest rates and flexi-pay facilities in Mumbai are:
• Atlanta Finances
• Dhanvarsha Finest Limited
• Creative Finserve Private Limited
• Sapne Corporation
• Lenden Club and many more
Make sure to check their RBI and BSE listings and their credibility and take your loan to grow your business sky-high.