The most key accessory today is the shoe. These days, both males and females dress up in formal attire, necessitating a constant need for a range of shoes. Male buyers have close to twenty pairs of shoes, while women have lined up more than 50 pairs. However, a pricing comparison indicates that men’s shoes contribute around 60% of market growth, while women’s contributions account for 30%. Like all other retail businesses, the footwear industry depends greatly on customer spending and frequently shifting consumer preferences. The footwear and shoe store industries have been trying to make the most of these resources for the development of technology and the country’s current significant reliance on social media.
India is the second-largest manufacturer of footwear after China, with leather an important competitive advantage in the country’s footwear market. Nike, Clarks, Reebok, Nunn Bush, and Colehaan are some of the well-known brands in India that consistently grow their customer base. India also has several local businesses that produce sandals and chappals. These little businesses also contribute significantly to the nation’s economy and the footwear industry.
Additionally, a business loan is becoming increasingly necessary to launch a shoe manufacturing or retail firm in India. We provide shoe manufacturers loans for small businesses around the nation at a reasonable interest rate to support entrepreneurs and the expansion of the national economy. Our business loans start at 50,000 and go up to 2 Crore with no requirement for collateral. All of our commercial lending solutions are adapted to satisfy the needs of India’s small and medium-sized businesses.
How To Utilize Footwear Industry Financing Effectively?
The following are some possible uses for the commercial loan provided to the footwear industry:
- Equipment and technology: Technology advancement has occupied a central place for all shoe manufacturers. The equipment and machinery may be purchased like all other retail environments with a business loan. It will make this possible to manage sales across all channels, locally and online.
- Marketing: For a business to survive and grow, marketing and advertising are crucial. These two are significant aspects of today’s competitive market. Shoe industry finance can be used to make investments in social media and other advertising platforms.
- Expanding Business: Expansion is needed for all businesses, and the shoe industry is no exception. The loan from the shoe manufacturer assists in business expansion. It could be expanding the firm to other locations or improving the business unit.
- Reduce company debt: The ability to combine lesser debts into a single EMI is one of the main benefits of these loans. It not only eases the load on your monthly spending plan but also assists in coordinating the repayment of your debt with the timing of your invoices. Additionally, by combining your business debt, you may pay off other obligations more cheaply because you can now extend the payback period to a full year.
Features Of Business Loan For Shoe and Footwear Manufacturers
- For MSME & SME Loans, we have a variable ticket size that ranges from 50,000 to 2 crores
- Capable of approving MSME/SME loan disbursements three days after application
- It approves unsecured business loans. In other words, collateral is not necessary to obtain an MSME or SME loan. No need to worry about asset security for your shoe business
- There are no supplementary fees or hidden costs with loans. The only upfront processing cost we assess is between 2 and 3 per cent, depending on the size of your loan. It enables you to receive a principal disbursal that is more valuable than any other available business loan package
- It doesn’t include any prepayment charges
Who Is Qualified For a Business Loan For The Shoe and Footwear Industry?
To process a loan for a footwear business, the eligibility requirements have been reduced to minimal necessities, such as:
- A company that is well-established and has been running for more than six months
- Income of at least 90,000 for the three months before the loan application
- The company must not be on any blacklists or exclusion lists for SBA financing
- Your company’s actual location shouldn’t be on the list of undesirable locations
Business operating since
More than 6 Months
> 90,000 turnover for 3 Months
Benefits of Business Loan For The Shoe and Footwear Manufacturers
You can redesign your business methods with the help of business loans in order to accommodate today’s flexible work conditions. These advantages of obtaining a business loan are:
- Faster Processing: Better processing translates into quicker credit for your company, enabling you to explore new areas and take benefit of opportunities as they present themselves. A timely company loan can boost your operations, raise your marketing potential, and boost your gross margins.
- Optimizes The Cash Flow: Business loans widen your window of opportunity by giving you the time and money you need to organize your cash flow and enter a profitable zone. In addition, these loans offer an investment that may be repaid in installments, allowing you to keep a healthy balance between your business money and company capital fund.
- Keeping Ownership: There is no possibility of losing assets or giving away valuable company shares because it is an unsecured business loan. Therefore, a business loan enables you to maintain ownership while still giving you the money you need to expand your business.
Interest Rate And Loan Fees
Documents Needed For Business Loan for the Shoe and Footwear Manufacturers
What Is The Simplest Procedure For Getting A Business Loan For The Shoe and Footwear Manufacturers?
- Submit Application online
- One-step verification requires you to upload digital copies of your documents.
- Within 3 working days, loans are approved and disbursed.