How Can a Business Loan Help Your Business After COVID-19?

How Can a Business Loan Help Your Business After COVID-19?

The Coronavirus or COVID-19 pandemic has brought all non-essential businesses to a grinding halt. The Indian Government has announced a US$13 billion stimulus package for Micro, Small and Medium Enterprises (MSME), which contribute to about 25% of the economic output and employ over 500 million workers.

This will help rejig the economy once the crisis blows over, but how will your business run smoothly meanwhile? If the uncertainty is giving you sleepless nights, a timely business loan could be just the boost your business needs to weather these tough times.

Uses of business loans During COVID-19

Manage your lease

If your business is running on a leased premise, your rent, power and other incidentals will be payable, irrespective of your business is operational or not. Business loans can be used to pay for such fixed costs so that your precious personal capital can be deployed better when operations resume.

Take advantage of discounted pricing

With no real movement happening, every business’ cash flow is stuck. If you are in a business that requires you to source raw materials/stock or purchase a business commodity in bulk, you could use this to your advantage. Your seller/vendor may be able to give a discounted pricing for bookings/orders placed now in lieu of an upfront payment. You can deploy funds from the business loan to pay in advance for discounted goods or services and increase your profit margin when business resumes.

Infuse working capital

Once operations resume, you will need capital to pay for day-to-day business operations, such as the purchase of raw materials, manufacturing/processing, salaries, etc. With a loan for business, you will be able to get your product/service out in the market quicker and scale back towards normalcy faster.

Why take a business loan?

For unsecured business loan, you do not need to provide any collateral or guarantor for the loan. You can get a loan starting from Rs. 5 lakh going all the way up to Rs. 75 lakh that can help you cover for any and every business shortfall.

What’s more, the business loan interest rate is reasonable too. This will allow you to get additional capital without adding too much of a cost. If deployed appropriately, the value you can generate from the business loan can be much higher than the interest you pay for using the capital.

The other advantage is the ease and flexibility of repayment. If you anticipate your business being affected for a longer period due to the COVID-19 situation, you can opt for a higher term for the loan, from 12 to 36 months. You also have absolute flexibility to structure the repayment terms.

Use the business loan EMI calculator to decide how much you would like to pay based on your anticipated cash flows.

Tata Capital’s business loan could be the difference between survival and growth in these uncertain times. Check your eligibility, upload your documents, and receive the funds in your account within a couple of days.

There is a silver lining to every cloud, and Tata Capital’s loan may just be the ray of hope your business needs right now.

Maria Fernsby

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