Business Strategy

Why Online Lenders are a Better Choice

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Online Lenders – The Better Choice

Small businesses are increasingly moving towards online business loans and finance options for expanding their operations. Online lenders offer several benefits over financing from commercial banks, such as Flexi EMIs and quick short-ticket finance. This has made these non-banking financial institutions the choice of modern MSMEs.

For example, today, non-banking financial companies like Lendingkart Finance are disbursing working capital loans and unsecured business loans across the country whereas banks are limiting their commercial lending activities.

Here are the reasons why you should apply for a business loan from an NBFC –

Quick Turnaround Time

The one element that defines importance of finance is its timely availability. If you fail to get the requisite funds within the time frame available to you, either the opportunity will be lost or the same activity will cost you more.

Since a majority of small business owners are applying with them, banks take their own time in scrutinizing business loan applications. Thus, the process of loan approvals is slow. NBFCs, on the other hand, specifically cater to the MSME finance. Therefore, they are prompt in completing documentation, verification and disbursals.

E.g., Lendingkart Finance promises loan amount disbursal within 72 hours of documentation.

Completely Online Process

The reason why an NBFC like Lendingkart can approve loans faster is the online only loan application process of the company.

Every modern business has access to digital copies of requisite loan verification documents such as PAN, Aadhar Card, Bank Statements and ITR Certifications. An online lender can thus quickly verify the statutory status of your enterprise and disburse loans where traditional banks continue to struggle with filing and manual paperwork.

Minimal Documentation Required

In an online process, the lender can verify your business and personal information through government’s online portals, hence there is no need for excessive paperwork and documents to be submitted. For example, Lendingkart offers business loans by verifying only the essential documents for identity, address, incorporation and tax compliance of your enterprise.

Flexible Payments and More

The completely online business loan process allows lenders to cut costs associated with manual work, and they are more than happy to pass you the benefits. So, expect lower business loan interest rates, flexible EMI options and reduced processing charges when you get a business loan from an online lender like Lendingkart Finance.

If you are planning a business expansion soon or want to streamline your daily operations with a working capital loan, visit our website; www.lendingkart.com, and sign up for a quick quote.

Demystifying MSME Loans

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MSME Loans – Risky and Profitable Business Types

Micro, Small and Medium Enterprises are the largest employment providers in India. Their contribution to overall employment in the country is pegged at 69%. Also, the MSME sector is responsible for almost 45% of the manufacturing industry and drive 40% of our total exports. These are significant numbers, and therefore, the growth of MSMEs has been a priority of successive Indian governments.

However, for growth, the MSMEs need investment, and the readily available source of investment to them is a business loan. Banks and commercial institutions called non-banking finance companies (NBFCs) are the two main providers of business credit for MSMEs in India. An average Indian MSME needs to pass a number of financial litmus tests before it can get an unsecured business loan or a working capital loan.

Financial institutions give priority to businesses which are considered risk-free and profitable. While it can be argued that every business can be prone to risks, there are a few benchmarks which can assuage the lender’s apprehensions.

A Registered Entity

A registered business entity which complies with the laws of the land establishes a trust in your company on the lender’s part. On the other hand, when a business lacks the necessary statutory paperwork, a lender is right to be apprehensive.

Therefore, getting a business registration will not only get you faster loan approvals, but will also remove any doubts about the legitimacy of your enterprise.

Age of Business

The second factor that distinguishes between a risky and profitable business is its age. While a short-term business idea can also be profitable, the lenders usually require at least 6 months of performance reports before sanctioning a business loan or line of credit.

If you are seeking an MSME loan, then it is better to apply for a loan after completing 6 months or more of operations. Another reason to that is because financial institutions place limits on the period within which you can reapply for a loan. For instance, if you are 5 months into the business and your loan application gets rejected, a lender policy may dictate that you can only apply again after 3 months.

That is another reason why you should never apply for multiple loans from multiple lenders at a time.

Credit History and Profitability

The bank or NBFC that provides unsecured business loans will scrutinize your business account statements to assess the risk or profitability of your venture. If you are unable to maintain a consistent cash flow and retain enough cash at bank to meet your liabilities, the lender will put you in the risky category. In case you are making a good profit, the lender will readily offer loan terms.

Also, if you have a steady cash flow and cash at bank but are not repaying your existing loans on time, it will reflect in your business credit history. Such behavior will lower your credit score and increase the risk factor in a lender’s reckoning.

Type of Business

There are certain types of businesses which are considered risky from an investment point of view. For example, dealing in real-estate, jewelry, precious metals, arms and ammunition, crackers, and other perishable goods involve a high risk-to-return ratio and therefore, given lower preference by a lending firm or bank.

If your business falls into the high-risk category, make sure that you have a solid financial report card to get a business loan.

Getting an MSME Loan for your business

A non-banking financial company is more likely to offer better loan terms for a business because of its in-depth scrutiny and flexible policies towards MSMEs. Lendingkart, a leading NBFC lender in India, offers business loans with customized interest rates along with a flexible EMI schedule.

To know more, visit www.lendingkart.com

 

Credit History – How It Gets Better Loan Amounts

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Credit History and its Importance

When you go for a business loan, the one thing that matters the most is your credit history or business credit score. Credit history is basically a statement of your loans and repayments in the past. Credit rating is assigned by rating agencies such as CIBIL and CRISIL.

Here are the benefits of having a good credit history.

Faster and Better Business Loans

A good credit score indicates that you have been paying your dues regularly and in a timely manner. This bolsters your business’s standing in the eye of the bank or the NBFC.

When the lenders see that your business is in the green of the credit scale, they will offer better loan terms. You will be able to secure a higher loan amount, a lower rate of interest and flexible repayment options with auto renewal terms.

Leasing Premium Office Space

The benefits of credit score are not limited to getting working capital loans or commercial loans only. We all know that a premium location can work wonders for your business operations. Landlords of premium properties also ask for credit reports these days to ensure your business’s ability to pay the (higher) rent.

Attracting Investors

Apart from business loans, investments are another source of financial help for budding entrepreneurs. A good credit score indicates healthy business practices and a good ROI. Thus, having a good credit history will build investor confidence in your business.

Therefore, it is quite important for a modern business to retain a healthy credit score. There are several things that can help you achieve that such as financial prudence, asset and liability management techniques and business loans.

How a business loan can help you maintain a good credit history?

Getting a loan and repaying it in a timely manner will build up your credit history. However, you must be very careful with the terms and conditions for your first business loan.

It might be that the interest rates for your first business loan are on a higher side but flexible repayment terms can offset that disadvantage. For example, Lendingkart Finance offers unsecured business loans up to ₹1 crore with options to repay in fortnightly or monthly instalments. If you want to pre-close your business loan after the first EMI, there are no pre-closure charges as well.

Such loan terms make it easier to repay your working capital loans and get a higher credit score for your business. To know more, visit us at www.lendingkart.com or download the Lendingkart smartphone app.

How to Get a Small Business Loan for a Startup

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Small Business Loan to Start a Business

For a new entrepreneur, one of the biggest hurdles to resolve and overcome is the need for capital. Funds are critical to any business venture. Finding ways to raise money can sometimes become a full-time occupation for a business owner. A business loan can be a very important supplement to the life blood of a company.

There are many ways that startup capital can be raised. There is the option of:

Going for a bank (most bank offer small business loans these days)
Exploring and applying to non-banking financial institutions
Using alternative methods such as crowd funding
Approaching angel investors and venture capitalists

For most new businesses the preferred method out of above is to apply for loans with banks and other alternative lending institutions.
 

How to Get a Small Business Loan to Start a Business

As a startup or a business idea in a nascent stage, the best bet to raise funds lies in non-banking financial institutions. It’s recommended to direct one’s energies towards acquiring capital from alternative lenders rather than traditional banks.

Most banks prefer to give loans to small businesses that are already in existence as opposed to someone who is just starting out. Banks prefer to cover risk and it’s for this reason that the documentation and evaluation processes are long drawn and rather stringent. For a new business, sometimes it can be difficult to meet all requirements. This greatly affects the chances of getting the loan approved.

Coming to alternative lenders, they make the process rather hassle-free and easy to get through. Some of the advantages that non-financial banking institutions offer are:

Slightly more flexible requirements and eligibility criteria
Possibility of applying online very quickly
Quick turnaround time on loan approvals
Instant loan disbursement after approvals

Amongst all these the leniency on the eligibility criteria as well as requirements are the most beneficial.

It is helpful to have lenders who will be willing to consider giving out money to owners who may not have a detailed and long credit history. Your top pick should be lenders who focus on your business idea and go-to-market strategy rather than those who focus on cash flow history. Armed with a solid a dynamic business plan, the loan can be applied for still.

Process to get a Small Business Loan to Start a Business

 
There are different types of business loans available and depending upon the requirement of the business, a relevant one can be sought and applied for. Some popular options of business loan include working capital loans, startup loans, cash advance loans etc.

The first step is to determine how much money is needed and what it is needed for. This will go into the business plan that will be evaluated during the loan approval process.

Once the amount has been determined, the next step is to do some research and seek out the available options in terms of lenders in the market. Choosing a lender is also a process that requires time and effort. Things like credibility of the lender (reputation in the market), interest rate being offered, support system on offer, options of how loans can be re-paid, process of loan application etc. need to be factored in before choosing the one(s) which would be applied for.

Once identified, the next step is to get all the required documentation ready and up to the mark. A great business plan which details out information about the business idea, the profitability of the idea, the scaling plan, the vision behind the idea, projections regarding staff and infrastructure as well as the marketing strategy. A clear and transparent business plan goes a long way in putting the odds in the favorable position.

The final step is to apply and go through the process.
 
As mentioned, the turnaround time with non-banking financial institutions is rather quick and if all is okay, the loan should come through within a fortnight or less.

Of course, if you have a business that is already 6 months old or more and has a revenue of INR 12 lakhs or more, you can always apply for a working capital loan at Lendingkart!

What do you think about this article? Please let us know in the comments. If you need to know more about how important it is to choose the right business loan, you can read our article here. We have also written in detail about small business financing options in India and you can read about it here.

Business Loan Interest Rates – Factors and Features to Getting an Optimal Rate

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How Business Loan Interest Rates Work

Ever wonder why business loan interest rates vary from lender to lender? There are several factors based on which every financial lender such as a bank or an NBFC determines the interest rate for any loan. The same holds true for a business loan as well. The more you satisfy these factors the lower your interest rate and accordingly, a higher interest rate is the result of such criteria not being satisfactorily met.

Here are the factors which are considered by banks and NBFCs for determining the interest rate for your business loan application.

Credit Score


The most talked about of all factors which determine your eligibility for a business loan and hence your interest rate, is credit score of your organisation. Some financial institutions also account for the credit score of the business owners to gauge their temperament for repaying loans. While having a healthy credit score helps in making the loan process smoother, you can get a business loan with an average credit score if you get the other variables right. The norm is to have a credit score more than 700 to be considered eligible and more than 750 to be favourable.

Age of Your Business


If your business is relatively young/new, lenders will consider your business loan as a high-risk entity, and charge you a higher rate of interest. Then again, having a long-running business does not guarantee a lower interest rates, as is covered in the following point.

Profitability of Your Business


Everyone likes a profitable business. That is especially true when it comes to lenders. If you are running an efficient organisation with large profit margins, lending institutions will most likely discount your business loan interest rates for it.

Volatility of Your Industry


Another important factor considered by lenders while calculating the interest rate for a business loan is the prevailing market conditions in a certain industry. If the market is excessively volatile, the interest rates go up, and if there is a projection of short or long-term stability, the interest rates are likewise relaxed.

Assets and Infrastructure


While unsecured business loans do not require a collateral, having a sound infrastructure and assets help if you are applying for loans in the range of six-digit figures.

Small Business Loan Interest Rates – Fixed vs. Variable


Based on the above factors, a lender will offer you an interest rate on the loan amount. The rate can be fixed or may fluctuate based on a market model that dictates variable interest rates. Although most people prefer a fixed interest over a variable interest rate, both have their advantages. If the market prospects are looking good, a borrower can save on interest payments by opting for a variable interest rate.

Lendingkart Business Loan Interest Rates


At Lendingkart, we understand the needs of our customers and therefore have devised a smart system based on analytics and machine learning. The system allows us to offer customized interest rates to our customer, thus ensuring that every loan application is sanctioned with the lowest possible interest rate. Thus, relieving MSME loan applicants from the dilemma of choosing between fixed and variable interest rates and giving them the best of both worlds.

If you are looking for an online business loan, visit our website to get a quick quote and apply for a business loan in a few simple steps.

Business Loan – Importance of Choosing the Right One

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The Importance of Choosing the Right Business Loan

When you are considering taking a business loan, there are a lot of things that you check out, both online and offline. One might check out online EMI calculators, ask friends about online business loans, visit the websites of online loan providers and do a comparison of business loan interest rates. This due diligence is an important part of the loan application process and helps you understand the limitations and opportunities offered by different commercial loans.

At Lendingkart, we believe that choosing the right business loan is very important for MSMEs as it helps them in drawing out the full benefits of a loan. Here, we are sharing the points to look for when applying for a business loan online.

Fulfilling the Basic Criteria

It is very important to apply for business loans that your company can easily service. When you apply for a loan, a hard query is sent to the credit rating agencies. Too many hard queries can bring down your overall credit score. Therefore, applying for a business loan for which your company is completely eligible is quite important. It will not only ensure quick disbursals but will also help you build your credit rating further up.

Getting the EMI Calculations Right

Another important factor when taking a business loan is calculating the EMIs and planning your repayments accordingly. Sometimes you might end up taking a business loan which your business can easily repay and yet miss out on EMI payments. This happens when you do not calculate the EMIs correctly.

For example, you apply for a business loan of ₹10,00,000, which your business can easily repay in 12 months. However, you erroneously opt for an 8-month EMI schedule, which stretches your resources, wasting the benefits of the loan or even leading to missed EMI payments.

Selecting the Right Lending Partner

While banks are a common source of medium and small business loans for entrepreneurs in India, opting for a modern business financing institution might be a better idea for getting working capital finance. Non Banking Financial Companies offer several benefits such as low processing fees, short turnaround times, and easy business loan renewals.

At Lendingkart, we have simplified the loan application process by making it completely online. Lendingkart interest rates are customized based on business prospects of every individual applicant, thus making it easier to get a quick personalized business loan online.

Flexibility in Repayments

A business loan offered with the option of a flexible payment schedule is a boon for MSME loan applicants. A commercial loan that lets you choose from a variety of repayment schedules gives you the freedom to focus on business development rather than on payment due dates.

Lendingkart Finance lets you choose a customized repayment schedule so that you can repay your business loan comfortably. If you are doing great in your business, you can even prepay the full loan amount without any pre-closure charges.

Concluding Thoughts

A business takes a loan to invest in its growth, therefore selecting the right business financing product remains critical to a business’s success. Today, there are a variety of online tools which help you assess the various loan products available online and make an informed decision regarding a new business loan. Also, by selecting the right financial partner, you can grow your business exponentially.

Visit our website www.lendingkart.com for a quick unsecured working capital loan quote.

5 Clever Small Business Financing Options in India

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For a new small business in India, like everywhere else globally, finance is the key to success and sustenance. Efficient and consistent fundraising is not the easiest of jobs. Still it does not have to be the toughest either. Traditionally banks tend to be the first and most preferred source of raising capital. Though they do not necessarily have to be the only option.

 

For a business to get to the stage of revenue generation and a profit making stage, the initial solid push is critical. That push comes from money. It might be for a brand new business starting out or a small business looking to scale up.

 

Here a few ways in which that money can be raised smartly.

 

Alternative methods to raise finance for a small business in India –

 

With the digital economy taking flight with rocket boosters, one has to think beyond banks. There are a number of other reliable options that can be explored. Such as:

 

Angel Investors 

While most business owners are familiar with angel investors, in simple terms, these are individuals with interest, initiative and investing power looking to vest in businesses. They keep a close watch on sectors that they think will work best for them and will be interested to fund businesses that meet their profitability criteria. Typically they operate as part of networks where they collectively scour through proposals and business plans to finally decide which ones they are going to support. Getting the nod of an angel investor(s) to fund a business is a big deal for most businesses. Depending upon their background and expertise, angel investors also tend to take a keen interest in the business and offer advice and suggestions for improving the revenue generation. Need to know the 8 most prominent angel investors in India? Read this article on Forbes online.

 

Crowdfunding

Crowdfunding is already a great fundraising option albeit a fairly competitive space. Given the popularity and ease of accessibility it’s fast turning out to be a preferred method for particularly startups. Crowdfunding literally means getting individuals to invest or give money for a business idea by putting it out there on a crowdfunding platform. Of course, the idea has to have potential and the investors need to see some ROI before they commit. Even so, this one is a fairly new age method and those who know how to play it properly can get good support for their business or business idea. This link lists the top 15 crowdfunding websites/services in India.

 

Lending Institutions

There are a number of independent lending institutions that can help raise finance for a small business in India. The requirements to secure a loan can be exhaustive for a small business at most banks. Unlike banks, these institutions are willing to take the risk to finance a small but solid business if basic eligibility criteria are met. This is a very effective source as there are high chances that the loan will come through. These institutions exist to cater to the newer and smaller entrepreneurs who have trouble taking their proposals to traditional sources. While they don’t come with as great a repute as banks, the financial help provided by them is great for most small businesses. Lendingkart is one of such institutions in India.

 

Bootstrapping

While mostly explored by startups, bootstrapping can be an effective way of securing finance for smaller existing businesses as well. A small business requires capital when wanting to scale up or expand. It can also be for acquisition of equipment, logistics or payroll management. Bootstrapping involves either investing one’s own funds into the business or getting some money from friends and family at low interest rates. It’s imperative to understand that this method works if the loan requirement is not too high. As the popular saying goes, one shouldn’t keep all their eggs in one basket.

 

Venture Capitalists

Funding from a venture capitalist is like finding a diamond in a coal mine. It’s hard to come by, but scores incredibly big points for a business owner. Most VCs prefer to support existing small businesses as opposed to startups. If they find proof of potential and scalability, they come on board not only with money but with expertise, mentorship and a lot of guidance. They tend to stay with the business till it’s either acquired by someone or till it goes public. The only possible downsides are that they exercise control and there is a lot of accountability towards the VCs.

Why Customer Engagement is Important? Part 3 – Returns and Refunds

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As an entrepreneur in today’s times, it is important to understand the value of customer engagement and how it is linked directly to the success of your business. An interactive relationship with your customers helps boost positive brand loyalty and this goes a long way in boosting the overall credibility of your business.

 

The advent and consequently, the rise of social media has led to customers having almost direct access to businesses and brands that they purchase from. Leveraging this channel in the most optimal possible way should be an integral part of your business strategy and planning.

 

While there area number of ways to connect and engage with your customers, social media handles are the most popular and effective. The ease of access and your clientele knowing that they can reach out to you with any sort of comment, suggestion, complaint or idea gives them a feeling of being heard and helps reiterate how important they are to you.

 

Customer engagement through social media can be promoted in many ways:

 

By sharing useful content: Good content is a mix of information, releases, your own product promotions and interesting articles or blogs that generate interesting discussions about your industry. Customers get bored with pages that only highlight their products. Think of variety when posting to sustain interest.

 

Being answerable: This is very critical as a big part of customer engagement includes making sure you reply to any and every comment, rant, review or suggestion that has been posted on your handles. Don’t let this slip and this can really have a negative effect if not taken care of.

 

Regularity: Find the right balance when it comes to posting. Don’t spam but post regularly enough so that your customers do not forget about you. There is a thin line and it is important to have a dedicated resource looking after your social media platforms.

 

Customer engagement helps returns and refunds. Here’s how:

 

Most customers are looking for quick resolution when it comes to returns and refunds. Including this aspect in the customer engagement strategy is a must.

 

Make it easy- Whether it is online or through a customer call, make it easy for your customers to return products and apply for refunds. Positive customers engagement is fuelled by not just the sale but also the returns that needs o be taken care of very sensitively. In fact, this is one thing that can prove to be the Achilles heels of many a businesses.

 

Define the terms clearly: Customers need to know what the terms for refund and returns are and this needs to be very clear, transparent and out there through the entire sales process. Find ways to get the information to your clients in advance so that there are no rude surprises for them. This will count as a credible point when it comes to rating your customer engagement.

 

Staff: Nothing can be more critical to your customer engagement than your staff. And this means both online and offline or via phone. Your staff needs to be knowledgeable about your products and return policies and be able to handle your customers in the utmost polite manner. A bad experience with a staff member can damage the reputation of a business immensely and this is especially true during returns as customers are already on the back foot and anticipating problems. Alternatively, a positive experience here can lead to a very healthy and long customer association.

 

Evidently, customer engagement cannot be treated as a by the way, one the side kind of activity. It has to be a full blown, thought through process that involves methods that are effective, innovative and garner successful results. There is no running away from this. This concludes our series on Customer Engagement. If you haven’t read the previous articles, you can visit Why Customer Engagement Is Important? Part 1 – Rave Reviews and Rants and Why Customer Engagement Is Important? Part 1 – Revenue Impact. We’d love to know your thoughts in the comments.

Why Customer Engagement is Important? Part 1 – Rave Reviews and Rants

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Customer engagement has become an important parameter for business success today. In this context, customer engagement is now almost synonymous to customer satisfaction. Customer engagement can happen through both online and offline channels. Positive customer engagement not only boosts your brand’s reputation but can also help drive sales. There are several ways a business interacts with its customers.

Product Review Sections

Customer review sections are some of the most visited sections on e-commerce sites. A product review is like a personal endorsement from a genuine purchaser. New buyers read these reviews for making a decision. The more negative or positive reviews you get the more effect it has on your sales.

Social Media Pages

Buyers also leave reviews on social media brand pages. Facebook, Twitter, and Instagram have become a medium for buyers-seller communication. Popular brands have been engaging with customers on social media for a while now.

Review Aggregators

These independent review sites let people rate their buys and offer advice to new buyers. Users can also rate offline products and services here. For example, TripAdvisor lets users share their experience of hotel stays.

Online Forums

User forums have also become quite popular with first-time buyers. Websites like Quora have become an important source of information for the netizens. Again, these forums are quite useful when you are looking for offline product reviews.

Customer Care

Customer care numbers still get a lot of queries and complaints. Although a bit conventional, this is a more interpersonal medium for customer engagement. Generally, customers can rate their experience through SMS and email questionnaires after the call.

Significance of Rave Reviews and Rants

• The most visible effect of 5-star reviews is that these reviews help drive your sales. The closer you are to a 5-star rating, the more buyers choose your product over the competition. Replying with thank you notes to your customers can further enrich user experience.

• Happy customers not only help improve online sales but can also drive offline sales. Nowadays, social media and word of mouth can spread a customer’s experience like wildfire.

• Unhappy customers can also be a source for driving sales. Timely resolution of user concerns can motivate them to reverse their initial review. This in turn can make a potential buyer confident in trading with you.

• Furthermore, user rants can also be beneficial for your company. Analysing negative reviews can help you understand the ways customers use your products. Based on that you can develop alternative usage scenarios for your product. Also, genuine user concerns can be used as a guide for future product development.

• A good user engagement strategy will also increase brand loyalty. A buyer is more likely to shop for your product if he/she has had a positive experience in the past. Buyers may also look for your brand’s other offerings in such instances.

Concluding thoughts

User experience or UX is fast becoming a key factor in increasing sales/growth for companies. The theory was brought to fore by the late CEO of Apple Inc. – Steve Jobs. The success of Apple all these years later is a testament to the enduring philosophy of UX. Customer engagement forms a large part of UX and is critical for any business’s long-term success.

Got a Growing Sales Team? A CRM can help!

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So here’s the thing. Growth of a business and consequently a larger sales team is a potentially positive development. A larger sales team means that more customers are being catered to. At least more clients are wanting to engage with your business which led you to hire more people.

All of this is great. However, what you also need to be mindful of is the management of this customer base. Customer satisfaction and retention is directly related to customer relationships. You would never want the quality of interaction to suffer due to increasing quantity. The solution hence is to turn to Customer Relationship Management (CRM) and invest in a good CRM tool.

Why CRM and what will a tool do?

Typically CRM refers to all that businesses do in order to analyze customer data, their patterns, behavior as well as interactions during the entire time or life cycle that the customer is with them. This information is extremely helpful, as it will enable you to formulate strategies and best practices both to be able to give your customers the kind of service required and also to have them stay on with you for longer.

There are a number of CRM systems that are available in the market and it is better for you to do some thorough research before choosing which system you’d like to invest in. However, that being said, most CRM systems are designed to incorporate these features below:

-The CRM system will identify the different points of contact between the customer and your business and then compile this data for analysis. These points of contact could range from anything such as social media handles, telephone, website or email marketing etc.

-There is arguably one feature of a CRM system that is very beneficial for businesses. Whatever data the system collects gets consolidated and reflected into a single database that you as the business owner or your sales team can easily manage and access. Having all of this information in one place helps to get a bird’s eye view of what your customer base is up to and what is it that you need to do to mange them effectively

-A good CRM system can also help with the productivity and efficiency of the sales team. There are options such as marketing automation and contact center automation. These features help in automating certain tasks such as sending out marketing alerts to potential new customers automatically. Options include using a pre-recorded voice system for problem solving and giving out information

-A CRM system also records the various customer interactions and you can use this information to track and evaluate performance as well as the productivity of your sales team. A growing sales team makes it harder to micro manage and this is where the CRM system can step in and make things more effective

CRM systems are very popular with most growing businesses and it would make sense for you to evaluate your needs and invest in one. With a larger team, automation and streamlining of processes not only boosts efficiency but it also leads to much better management of your customer database, something that is critical to your business.

Another plus point and one that is also very important is to be able to track lead generation. A lead that is lost is a conversion opportunity gone down the drain. This is not something that you would like to consistently encounter in your business model. CRM systems help in effective lead tracking and facilitate the process of cultivating a positive customer relationship too.

The point being, a CRM system will eventually be an eventuality. If you want to seamlessly transition into the next level of your business growth plan, it will be helpful to invest in such a system sooner rather than later.