India is steadily emerging as a hub of manufacturing engineering goods and products. Today, a vast quantity of tools and components are exported to countries in Europe and the USA. The engineering industry earned a total of approximately Rs. 5.1 trillion in FY 2017, and promises to grow even more in the coming years.
Such exponential growth is happening largely because of the availability of funds to invest in infrastructure and production line. Many financial institutions in India offers business loan for engineers that can be used in many ways to improve your engineering business.
Loan for Professionals like engineers, doctors, and chartered accountants are becoming a popular financing option as it offers substantial capital in a relatively hassle-free manner. Let’s take a look at how a professional loan for engineers can be used to benefit a business.
● Improve infrastructure – Infrastructure is one of the key requirements of a successful business. Quality infrastructure ensures timely production while bringing down the manufacturing cost. There are multiple ways to develop or improve your existing setup. With the help of a loan for engineers, you can –
1. Procure new manufacturing plant – An essential part of business growth is building new plants that will accommodate higher production volume and storage of goods. Such developments require a lot of funds; you will need money to buy plots, build the necessary accommodation, etc.
It will also involve placing systems like water and power supply, communication systems, basic transport systems, etc. These expenses can also be covered with the help of a loan for engineers.
2. Upgrade the manufacturing equipment – The tools and machines used to manufacture the products are one of the most significant parts of your engineering business. Periodic upgrades are necessary to keep up with the advancement in technology and to produce high-quality products.
You can buy the best machinery with a loan for engineers. Financial institutions offer large capitals with affordable engineer loan interest rates that you can utilise to purchase the machines and repay accordingly without straining your working capital.
● Build a better workforce – There is a constant demand for skilled workforce in the engineering business industry. With increased working capital, you can –
1. Hire qualified engineers – Hiring qualified, experienced engineers to boost your manufacturing business can be expensive. You will have to offer them a handsome monthly wage, and the compensation will increase as you opt for more experienced individuals. You can take a business loan for engineers to afford their salary without depleting your savings.
2. Train existing staff – Providing necessary training to your workforce is another utilisation of loan for engineers. With proper training, your team will be able to better use any upgradation in the manufacturing equipment and practices.
It can also be an alternative to hiring new and more experienced people. People with specialised technical skill can be difficult to find, and they might have a high salary expectation. With the help of an effective training regimen, you can develop your own team to perform the necessary tasks.
● Procure new technology – To streamline the manufacturing processes, technical innovations are emerging every day. Modernisation of existing software and adaptation of new technology is important to ensure your firm does not face technological obsolescence.
With a business loan for engineers, you can opt for new billing or inventory management software to better optimise your engineering business, as well as pay for the training of your staff.
● Build a strong working capital – Insufficient working capital is one of the major problems that plague the Indian manufacturing industry. Huge working capital is required for manufacturing firms to maintain daily overhead costs, monthly utility bills, transportation expenses, etc. You can avail a professional loan for engineers to keep the production going.