Since your core expertise lies in understanding finance and making sound monetary decisions, the importance of funds from an external source is well understood by you. Upholding the role of a business owner, it is important for you to know how a business loan for CAs can help you improve your firm’s position.
Take a look at how you can make use of this excellent resource in different ways to accelerate growth for your business.
1. Boost working capital
A Business Loan for Chartered Accounts, such as one from Bajaj Finserv, gives you a Flexi Loan facility where you can borrow as you go from the total sanction, and pay interest only on what you use. Besides, you can make prepayments at no extra charge, and you can also pay EMIs comprising only the interest component, and then pay the principal in one go at the end of the tenor.
In addition, this loan comes with a flexible tenor of up to 60 months, funds of up to Rs.35 lakh, easy online application and loan management.
Here are 3 scenarios in which a Flexi Business Loan can help you cater to working capital needs.
Tackle everyday expenses: Whether it is to clear short-term debt, take care of utilities or pay salaries, funds from this loan can help you take care of the expenses that allow you to run your business smoothly. For example, if you don’t receive payments from two or more clients on time, you may find it difficult to pay your employees. To stop the domino effect, you can interject with funds from this loan and take care of salary payments while you work on payment collection.
Add new clients to the roster: Taking on new clients will help you improve your profits, but you will also have to increase your investment in resources to ensure that you are able to cater to the increased workload satisfactorily. In such a scenario, a loan for chartered accountants will help you secure the necessary finance.
Replenish insufficient working capital: Insufficient working capital, or a negative working capital situation can make it difficult for your firm to explore its maximum potential. Funds from this loan will help you meet any gaps and ensure that all processes are on track.
2. Undertake expansion
Regardless of the scale of your business, when it comes to expansion, you will have to support the move with funds in adequate measure. Here too you can make use of a loan for CAs as it gives you up to Rs.35 lakh on an unsecured basis. This allows you to tackle expenses related to expansion such as hiring additional resources, investing in infrastructure, investing in the latest software, financing mergers, acquisitions, licenses, paying taxes and more.
3. Do up your new office
While leasing office space is only the first step, with regards to setting up a new office, factoring expenditure on interiors is essential too. You will have to spend on painting the office, buying the right furniture, lighting and air conditioning, installing blinds, setting up a kitchenette, etc. To take care of these payments swiftly, you can use funds from a CA loan. You can leave your firm’s savings untouched, and instead turn them into an emergency reserve.
4. Buy necessary assets
For your firm to function optimally, you’re sure to require a host of assets. These typically include a company vehicle, reliable computers and laptops for your employees as well as high-end smartphones for senior employees who may need to work on the go. With a CA loan by your side, you can purchase the assets without any hesitation.
5. Repay debts swiftly
Having multiple short-term debts is dangerous, as they can snowball into obligations that are difficult to manage. Whether it is business credit cards, a short-term trade loan or payments to your vendors for supplying software, using funds from a chartered accountant loan will help you consolidate all your debt and wipe it off your balance sheet in one fell swoop. This will keep your firm’s credit score intact, reduce expenditure on interest and maintain a healthy relationship with those who offer products and services to you. Besides, since the CA loan itself has a long tenor and an affordable rate of interest, it makes it a viable way to take care of any outstanding debts that you’re carrying.
6. Attend to unexpected expenses effortlessly
Let’s assume that during the filing season, you face a sudden shortage in manpower. To ensure that this doesn’t affect your firm’s functioning, you will have to hire employees quickly, and may have to pay for their notice period, so that they can join your firm immediately. Such an expense is unexpected, and will require quick action. To ensure that you can take the steps that are best for your business, you can rely on a CA loan’s Flexi Loan facility.
So, whether your goal is to grow your business or to ensure that you’re always maintaining a positive working capital, with a loan for chartered accountants by your side, you can achieve your targets without any financial stress.
To know more about a CA Loan from Bajaj Finserv, click here.