Machinery is an important aspect of the functioning of a company. Up-to-date machinery helps the employees in numerous ways. Firstly it reduces the workload of each employee. Secondly, machineries help to automate tasks which helps the company to achieve more in less time. Right from the production process to problem-solving ones, leading companies are finding ways to automate the process in order to help their workforce to be more productive in their functioning. Machinery results in the generation of large profits starting right from uniformity in production and increased efficiency in human resources.
Much of the process of affording these machineries can be accredited to the financial institutions. Financial institutions such as NBFCs and banks are providing specific loans which have been specially designed to meet the needs of small businesses. With their help, you can purchase the right machinery required for your enterprise. However, when approaching a lender, there are few common mistakes that every borrower commits. It is important that you steer clear of these mistakes and avail a hassle-free Machinery Loan.
Here are a few common mistakes which you must avoid while applying for a machinery loan:
Not having a clear idea about what your business needs: Machinery as said before can make or break your plans. The right machinery can go a great way in resolving problems and driving efficient results, whereas the wrong machinery can prove to be a massive liability. For this reason, it is essential that you be well aware of the machinery requirements. Moreover, if you already have machinery, make sure to check its efficiency and find ways through which it can deliver more productivity. If you do not have machinery, then consider all the options available in the market wisely. See what you exactly need and how can you get it.
Overlooking the space requirements: When you are thinking to buy machinery for your enterprise, you should predefine where it is going to be placed. Buying machinery involves enormous costs, and for it to work efficiently, it is essential that it be allocated with sufficient space. In case if you happen to place the machinery in an unplanned manner, it would result in lower output and higher work accidents. Thus, before investing a hefty sum into buying machinery, make sure that you find a place beforehand.
Not being clear about the need: Regardless of the technology, many people prefer buying second-hand products. Firstly, it is cost effective. Secondly, it gets the work done. Thus, if you are looking to get the work done bearing tight budget in your mind, used machinery is a more realistic option for you. You do not have to go all out into buying a new machinery when you can get the job done with a cost-effective used one.
Improper planning of finance during purchase:Machinery buying is not a cakewalk nor is the way to finance it. It requires quite a planning and neck when it comes to buying machinery. As far as the financing goes, you can simply opt for a loan. A term loan or a line of credit are a couple of options that you have in your hand. If you are going to apply for a Machinery Loan, know that NBFCs such as Bajaj Finserv offer quite flexible offers.
Finally after taking care of all the points above. Make sure that you calculate your EMI before availing a machinery loan and choose a tenor carefully. A right EMI coupled with a right tenor will help you to repay the machinery loan efficiently without any financial constraint.