The last few years have seen a spurt in the number of start-ups in India. Many people are actually fascinated with the idea of being their own bosses. It might even sound like a piece of cake for few. But that is not true. It takes a lot of efforts, hard work, thinking, and of course, capital to sustain a business.
Money forms the basis of any business because you need the money to pay your employees. Not just that, you also need money for the other basic stuff like the equipment, to pay off the vendors, etc. So, how can you increase your working capital?
Here are a few tips that you can look into in order to increase your working capital:
1. Make The Use Of A Working Capital Loan:
A Working Capital Loan is a loan that you can avail from a bank or a Non-Banking Financial Company to finance the everyday operation of your company. They are short-term loans that can be used to pay off the short-term needs like the salary for your employees.
You have to undergo an extensive procedure if you avail the loan from a bank. However, Non-Banking Financial Companies are more flexible and the disbursement of loans will be comparatively faster and easier.
2. Manage Your Inventory In A Better Way:
It is customary for many businesses, especially vendors, to stockpile all their products in advance. But this will actually be an expenditure that you are unable to recoup, if you are not able to sell all these products. Therefore, it is necessary that you take an inventory on a regular basis to understand how many more products you have to sell. It is a better idea to keep a small number of products handy.
3. Make Sure Payments Are Done On Time:
Often times, it is seen that there is a delay in receiving the payments from the customers. It is necessary for your business that you do not fall prey to any excuses that the customers give you. But there is no denying the fact that there might be people who are genuinely unable to pay you back at the moment. You should be able to differentiate between the two.
4. Keep Your Suppliers Happy:
For your business to sustain, it is necessary that you maintain a good cordial relationship with your suppliers. After all, they are the ones who will be supplying you with the products, right? The best way to maintain a good relationship with the suppliers is by making all your payments on time. A good relationship with your suppliers will go a long way and a good behavior might even incline them to help you if you are ever in need.
5. Manage Your Expenses:
Maintaining your finances is probably the most important thing you need to look into while running a business. If you are not good at finances, make sure you appoint someone whom you can trust and who is capable of running a business. Keep your financials transparent and make sure you know exactly where even a penny is spent.
It is very easy to avail a working capital loan from a Non-Banking Financial Company and you can easily avail a loan of up to INR 30 lakhs. You do not need to have any collateral or a guarantor when you are availing a working capital loan. Nowadays, you can even apply for a working capital loan online. You just have to go to the Non-Banking Financial Company’s website and apply for the loan online.