Business Loans for Manufacturers
Judicious use of loans can create financial leverage. Sources of funding business can be retained earnings, equity capital and debt capital. Loan financing of business falls in the category of business debt funding. The right amount of debt component in the funding structure of business enables the business to acquire the best form of leverage. Optimal capital structure is associated with correct costs attributed to the different types of capital.
The cost of loan capital is low for manufacturing businesses when weighed with the financial leverage that is made possible. In comparison, retained earnings and equity funding may prove to be of high capital cost if used beyond a certain proportion as the opportunity costs of the fund can interplay with the cost of fund and business leverage. Business loans for manufacturers are not the last funding resort but preferred means of business funding.
Loans Matched with the Type of Manufacturing Business:
A manufacturing set up has its own peculiarities. One manufacturing business is different from the other. Manufacturing can be of several types, broadly speaking the perishable, semi-perishable and non-perishable type of manufacturing. Different manufacturing businesses have different business cycles which influence the cash flow cycles. At Lendingkart, you can find business loans for every kind of manufacturing business and the cash flow cycle. Make the most of our loan products and realise the best cost of capital, capital structure and business leverage.
Get a flexible business loan for manufacturers based upon the cash flow cycles and business characteristics. Depending upon the type of manufacturing business, the cash flow can be:
- Long-term and uncertain
- Short-term and uncertain
- Long-term and certain
- Short-term and certain
- Mid-term and uncertain
- Mid-term and certain
Manufacturing business can require loan funding for various purposes:
Purchase of raw materials
Continuous interest based short term loans, payable out of cash flow
Purchase of machinery/equipment
One time long term EMI based flexi loans, payable out of profits
Renting of machinery equipment
Continuous interest based long term loan, payable out of cash flow
Purchase of manufacturing setup
One time EMI based long term flexi loans, payable out of profits
Rent of manufacturing setup
Ongoing interest based long term loans, payable out of cash flow and profits
At Lendingkart find the right type of loan matched with your business type. Lendingkart loan experts will help you arrive at the correct loan product choice that will help you reap lucrative benefits from your funding plan.
Features of Lendingkart Business Loan for Manufacturers:
We at LendingKart fully understand the cash flow requirements in any manufacturing business. Through our portal, you can source low cost, flexible loan funds, which are the right type for your business. Following are the general features of Lendingkart business loans for manufacturers:
Businessmen can opt for any particular loan tenure yet they would not be penalised if at a later stage they may want to change the tenure. For example, if you want to settle part of the loan or the entire early to reduce the EMI or close the loan, then we won’t charge you any penalty. Alternatively, you may also apply for an extension of loan tenure at no additional processing fees.
Flexible Tenure Options
At Lendingkart we have made available loans under several tenure options to suit the specific funding needs of all kinds of manufacturing businesses.
Fair Interest Rates
When you source loan products through us to infuse your manufacturing business, you can be assured of fair interest rates. Our loan interest rates are standardised across the financial services industry, and we never like to skim our customers. We may periodically adjust the rates by minimal basis points of 0.5 to 0.25 to adapt to the market corrections.
When you source loans from us, there is no long waiting period. Manufacturing businesses move on fast decision making, and so do we. We understand the importance of time for manufacturing businesses. Business people and entrepreneurs can source loans from us within three working days.
No Surprise Charges
For sourcing our loan products, you just need to pay an initial processing fee of 1-2 % and then no more throughout the loan repayment tenure, regardless of loan plan adjustments and changes.