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31 Jan

Looking To Expand Your Capacity? Get A machinery loan from Hero Fincorp

  • By Editorial Team
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Machinery plays a crucial role in most businesses and the smooth functioning of any business especially those in the field of manufacturing depends on machinery. Therefore, ensuring its serviceability and timely up-gradation is very important for growth, which requires significant expenses.

Taking a machinery loan is best way to meet such expenses and is also a sound business decision. There are multiple benefits associated with availing a machinery loan for a small to medium business enterprise.

Let's take a closer look at what machinery loan is and what are the advantages involved.

What is Machinery Loan?

Machinery loan falls under the category of business loan for manufacturers and is a popular method for financing the purchase of new machinery. It can be used for to repair faulty parts or upgrade the equipment to enhance productivity and improve standards.

Features of a Machinery Loan

  • An unsecured business loan

  • Higher loan to value (LTV) of up to 75%

  • Longer and flexible repayment tenure of up to 7 years

  • Flexible scheme plans to meet the unique requirements of your business

Taking a loan for the purchase of machinery does not adversely impact the financial status of a business and is a great way to expand the business.

Why should you take a machinery loan?

A manufacturing unit benefits greatly when it has access to the right kind of machinery and skilled human resource. Not only does it provide a competitive edge over others, but also helps to achieve higher margins. And, machinery loan helps small manufacturing businesses realise all such benefits.

Increased Productivity

With more advanced machinery at disposal, you can increase the productivity of your manufacturing unit with minimal effort and time. This will enable you to fetch greater sales numbers, provide products on time, and expand your business.

With greater quality control, it will also help to reduce manufacturing defects, thus lowering costs and enhance the goodwill of your brand. Also, it will enable you to enhance the trust of your customers in your products.

Faster Turnaround Time

Newer and modern machines allow faster production while maintaining the quality of the product. This will enable you to fulfil orders and ensure timely supply in the market without disrupting the supply chain.

Maintain cash flow

With higher production, decreased costs, and lower defects in products, the cash flow of business will witness a marked improvement. It helps to make payment of dues to all vendors and improve your creditworthiness.

No collateral required

Getting a machinery loan does not require any collateral and enables you to put your assets to more productive use. This loan is extremely flexible and can suit an array of requirements of any business dependent on machinery.

Avail a machinery loan from Hero FinCorp

Hero FinCorp is a leader in the segment and offers machinery loans to help businesses to expand at a faster pace. It offers machinery loan for refurbishment and purchase of new equipment.

Eligibility Criteria

  • The entity should be public, private, proprietorship or must be self-employed

  • Existence of a minimum of 3 years in the current business

  • Business profitability as per industry norms

  • Satisfactory credit score

Documentation

  • Audited financial statements of last 3 years

  • Growth projections

  • Profiles and KYC documents of Directors and Partners

  • Company constitution documents, registration certificates and other legal documents

How to Apply

To apply for a machinery loan, you need to fill an online form and provide your basic details. To fill the form, click on the "Apply Now" option present on the right top corner of the website.

You then need to provide information including your name, mobile number, and email. Then select "SME and Commercial Loan" in the product field and city details.

Following successful submission of the form, an executive will contact you to help you with the rest of the process.

Functioning in a dynamic market requires reacting to market demands and meeting subsequent business requirements. Equipment breakdown, change in manufacturing processes and advancement in technology are a part of this process. And, machinery loan helps to provide that flexibility to continue the operation without experiencing disruptions.

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NACH

National Payments Corporation of India or NCPI has launched National Automated Clearing House or NACH, which offers a system similar to ECS. NACH can be used by the government, companies, and financial institutions to carry out high volume, inter-bank, and repetitive electronic transfers. It can be used to pay salaries, pensions, dividends, and bills for water, electricity and so on.

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