India’s business sector is undergoing a dynamic change in terms of marketing, technology, finance, etc. Organizations are creating impactful solutions through scalable technology and innovation, acting as strong drivers of socio-economic transformation.
Irrespective of size and genre, finance functions as an elixir in establishing and developing every enterprise. Adequate business funding, especially at the growth stage, is necessary for businesses to scale-up to a larger customer base.
Every enterprise goes through certain stages of business lifecycle covering the following:
- Development stage.
- Startup stage.
- Growth or survival stage.
- Expansion stage.
- Maturity stage.
In the process, it encounters different challenges that also change its financing requirements. As a company withstands its initial stages, it enters the growth stage adding new clients and generating more revenues.
This is also a stage when start-ups face diverse challenges like market competition, effective management, accounting management, increasing revenue and increasing customers.
Whether you are maintaining a healthy profit or operating at a loss, you must prepare your business for its growth phase.
Financial organisations offer several business funding options today, customised for an enterprise’s diverse needs. Strategic use of such instruments, like loans, can play a significant role in a company’s success.
Various areas in the growth stage that require funding
The growth stage brings up different financial requirements as the competition starts surfacing here.
Some major areas where business funding becomes crucial are
1. Regular expenses (working capital)
One of the biggest challenges in a growth or survival stage is handling a variety of issues regularly, which require more time and money. Increased routine bills, payment deadlines, rise in sales and demand, etc. are some factors that bid for substantial working capital.
An external source of finance, hence, becomes crucial to maintain adequacy and unhindered operations.
2. Advertising and marketing
At this phase, you are already visible in the market and receiving new customers consistently. It is essential to consider investing in new-age advertising and marketing strategies now. Expand your scope and plan to penetrate different market avenues by going online. This again requires financing, which you can address with business loans.
3. Seasonal or higher demands
Increased demand calls for more and better-quality products. Your business will likely need additional funds to enhance its production capacity, increase the workforce, bring in modern technology or infrastructure and even expand the premises during such times.
4. Research and analysis
Most companies conduct research and analysis of the market opportunities and business capability before entering its late growth stage. Note that R&D also requires substantial funding.
Besides, your business is likely to face additional growth challenges such as responding to competition, pacing with market changes, dropping or adopting a strategy, etc. Effective leadership, along with proper business funding, can help address these issues in a growth stage effortlessly.
Unsecured loan – A comprehensive funding option
Business loans in India are one of the most flexible and affordable funding options for start-ups. With increased borrowing power in the growth stage, you can make a definite plan and avail a business loan easily. It involves no risk of asset confiscation, as no collateral is needed for security.
Significant benefits of business loans
Borrowers can enjoy optimum freedom in utilizing business loans in India whenever needed.
Prominent lending institutions offer up to Rs.30 lakh to cover larger or diverse expenditures efficiently.
Invest the amount in consolidating debts, expanding operations, infrastructure, increasing working capital, inventory, etc. There are certain financial habits that help you better manage your business growth with the advance.
3.Quick approval and disbursal
With minimum business loan documents, lenders offer the fastest loan approval and disbursal. Address financial emergencies of your growing enterprise immediately. Check out the primary business loan documents needed.
You can apply online via easy application forms for business funding. NBFCs like Bajaj Finserv provide such financing online.
As an enterprise progresses through several stages, external business funding becomes an essential driver of its success. Internal funds often prove insufficient for asset development and sales growth.
Therefore, companies need to raise capital from external sources for achieving a significant position in the industry. Be strategic with a viable business plan and borrow high-value unsecured loans from the most reliable lender in India.