It is extremely important to keep up with new technology in order to ensure the growth of your business. The businesses have to adapt to the environment .i.e, they need to update their existing operations. It is possible to increase production by purchasing the latest machinery or by expanding it. A machinery finance will help in this case. You can avail a machinery finance at attractive rates of interest with or without collateral. This loan will assist MSMEs to increase their sales volume and, ultimately, the profit of the company. machinery finances are available to businesses to help them buy new machinery or replace old equipment. This can be due to a change in technology or damage to the previous machine, etc. To understand how the procedure execute, let's examine the following FAQs.
What is the importance of machinery finances?
India has a large number of Micro, Small and Medium Enterprises engaged in manufacturing as well as service industries. In the case of manufacturing enterprises, they require machinery to produce the goods. Such machinery can be costly and hence there comes the requirement of machinery finances. Getting a loan, particularly for the machinery, helps these businesses significantly as they can buy the required tools and equipment that will increase their productivity.
Is it possible to obtain a machinery finance without collateral?
Many institutions fund on the basis of collateral, but we arrange the finances in both secured as well as unsecured ways depending upon the availability of collateral with the borrower.
How long can be the repayment period for the machinery finances?
The tenure/repayment period of machinery finance majorly depends upon the amount required for purchasing machinery. It can be availed for short as well as long term, mostly the tenure is more than a year and can even go up to 5 years.
How much interest is applicable on machinery finances?
The interest depends on the availability of the mortgage, i.e., whether the loan is secured or unsecured. If the borrower possesses the mortgage, the ROI applicable will be lesser. Whereas, in unsecured loans, the ROI will be higher as compared to the secured one. We at Terkar Capital arrange both the products at a reasonable rate for our clients.
Who can apply for machinery finances?
All the eligible businesses can apply for machinery funding. The business engaged in manufacturing will require machineries majorly and therefore can opt for the same.
What is the procedure in Machinery Funding?
The machinery finances can be availed through the following steps,
Know the requirement: The first step is to understand the requirement of the client. This includes the details of machinery, amount required, etc
Check the eligibility: Further, we check whether the client fits in the eligibility criteria or not. The prime factors required for eligibility criteria is the age of applicant, business vintage, turnover/earnings and credit score.
Put forth the proposal: After analysing the above steps, we find an appropriate lender for putting forth the proposal and approves the acceptance.
Fulfil the documentation: In this step, we fulfil the necessary documents and send the same for sanction.
Get the funds: Finally, after completing all the above steps the funds will be transferred to the client and he can use the same for financing machinery.
Why acquire machinery finances from Terkar Capital?
The following are the benefits which we provide to our clients:
● We arrange funding, even for the larger amount of machinery.
● We offer machinery finances in both secured and unsecured ways depending upon the availability of collateral with the borrower and his credit score.
● We maintain confidentiality and transparency in the process.
● Easy access to funds.
● We arrange a wide range of lenders and choose the best suit for the borrower as per his needs.
● Our team of experts constantly guides the client and makes their procedure convenient.
Machinery finance is a type of loan that is used to purchase or lease equipment for a business. It is a popular option for companies looking to expand or upgrade their operations. And, we at Terkar Capital are pleased to cater to the same. In this blog post, we will answer some frequently asked questions about machinery finance to help you make an informed decision about whether it is the right choice for your business.
