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26 Aug
  • Editorial Team

Scaling your business? Find the right funding partner

Most successful companies across the world have proved that healthy growth is the result of carefully planned growth initiatives. Growth initiatives may involve increasing capacity of existing plants, recruiting talent, expanding to a new location or offering a wider range of products. 

While the above may seem simple, yet many businesses are unable to undertake these initiatives. This is often due to lack of funds which are required to keep the business afloat as the initiatives take time to bear fruit. 

Additionally, there are several other challenges that small and medium businesses have to overcome before they embark on the growth journey. 


Why should businesses continually focus on innovative growth initiatives?

Apart from the constant pressure of growing profitably, hiring the right workforce and overcoming government regulations, one of the most significant challenges of scaling up is fighting off intense market competition. 

If the product has fair market acceptance, you will find big and small competitors vying for a share of the pie. This competition isn’t just local. Global manufacturers are often offering similar products at lower price-points, thus, threatening to usurp the price sensitive customers from competition. 

In order to survive the tough competitive environment, small businesses need to keep tweaking their business model. They need to be agile in their thought process and experiment with various marketing strategies. To stay ahead of their competitors, they need constant flow of funds to finance their growth initiatives. That leads us to the most important aspect of growth for businesses in our country – access to finance.


To grow you must invest

Profitable growth is all about pairing revenue growth whilst controlling the incremental costs. To achieve this revenue growth, businesses have to continually invest. In a nut shell, to grow, businesses need money. 

Crucial elements in growing to the next level are - understanding how much money you will need and who will provide this financial support. 

Securing financial support is extremely important since there is bound to be a gap between the time you need to invest the money in growth and the time when you get the resulting sales and profits.

This financial support should be reliable, inexpensive and easy to process. Since small businesses have constrained capacity in terms of funds, they need fast executions; thus, quick loan processing is an important factor in choosing a financial partner as well. 

While scaling up, most businesses explore these three options for finance.

  1. Promoter Savings – While this is the first line of credit that every business owner depends on, there is a lot of risk involved in taking a loan from yourself or keeping your assets on the line

  2. Loans from Family and Friends – This has been a traditional funding source for scaling up a business because of the low rate of interest or no interest involved. However, there is always the potential risk of disputes if you fail to pay back. Also this arrangement works mostly when the money required is not that significant.

  3. Financial Institutions – Depending on your financial need, you will either approach a commercial bank, a NBFC, Government Agencies or micro lenders. Most financial institutions will provide small business loans based on a number of factors like your credit history, debt to income, the health and age of your business, and the ability to furnish collaterals.

For more about small business loans, you could read Small Business Loan: how to get one?


Finding the right financial partner 

So how will you determine the right financial partner? If you run a business that has strong fundamentals, you will find a number of financiers vying for your business. At that time it is imperative to choose a financier which has extensive expertise, robust processes and modern technology to provide a quick, easy and transparent experience while processing your funding requirements.

To make such growth stories possible, NBFC partners like Hero FinCorp have consistently demonstrated their expertise in understanding the market, its issues, requirements and offer corresponding financing solutions. Their SME & Commercial Loans have changed the face of businesses across industries. 

For manufacturers, traders and service providers it is sometimes difficult to provide the mountain of documents that Banks demand for issuing a line of credit. Similarly, knocking on the doors of government agencies may not be prudent if you are looking for quick funds. 

Hero FinCorp, with its surrogate income proof programs, goes the extra mile to correctly assess a business’s repaying capability. Resultantly they offer the maximum loan possible. Combining this with industry leading turn-around-time for loan processing, ensures that the process is hassle free and lightening quick for the customer. 

Further, if a promoter is willing to offer his properties as collateral, Hero FinCorp also offers flexible products such as Loan Against Property. This allows promoters to capitalize their asset at highly competitive interest rates which in many cases, gives an edge against the competition. 

For those expanding the reach of their business, a two-wheeler loan comes with numerous benefits like extended repayment times, low interest rates and ultra fast loan processing. 

On the back of deep Medical Industry expertise, Hero FinCorp also offers Medical Equipment Financing to medical practitioners. These loans have resulted in numerous doctors upgrading their clinics and bringing high quality healthcare to thousands of patients across the country.

A real financial partner is the one who ensures nothing stands in the way of you pursuing your dream and scale it to new heights. Click here to know how you can access financial help for your dream business.

Did You Know


The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.

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