RAISE UP BUSINESS REVENUES WITH MACHINERY AND EQUIPMENT LOANS

Machinery loan is a type of business allowance that let the owners to finance the purchase of equipment indispensable for the smooth running of the business. It typically assists in funding the purchase or lease of new equipments and also includes the repair of faulty gears.

Tool credits are normally suitable for small, micro, medium and large-scale organizations which urgently require capital in order to upgrade and buy tools and also for extending overall productivity as well. This credit usually offers immense support to any type of manufacturing units.

For instance, you have a suit manufacturing business and had to buy suit manufacturing tools with the upgraded or latest technology in order to expand your business, but you do not have enough money to purchase an expensive tool. In this case, you can simply approach money lending companies for equipment financing and can easily buy the tools in order to fulfill needs and requirements.

Advantages of equipment and machinery credits-

Here is the list of benefits associated with equipment financing are as follows-

●      Available on a big amount

●      Flexi loan facility

●      Preserves cash flow

●      Easily obtainable as compared to other finance services.

●      Increase revenues

●      Boost the net value.

Eligibility criteria and documents required -

While appealing for "Plant and Machinery Loans" verify that you meet the eligibility criteria mentioned below-

●      Age limit- 25 years old and below 65 years business owners can apply for this credit.

●      Your business must be remunerative for succeeding three years.

●      Your business’s turnover requires showing a rising trend.

●      The balance sheet or other financial statements should be audited properly by a registered chartered accountant.

Also, ensure that before applying for machinery credit you have the entire necessary machinery loan documents mentioned below-

●      KYC documents- Age, address and nationality proofs like- aadhar card, passport, PAN card and other mandatory documents of the directors and partners.

●      Business proofs (trade license/ ITR/ sales tax certificate/ establishment).

●      A certified copy or sole proprietorship declaration of partnership deed.

●      Required bank statements of past 6 months.

●      Income tax returns across with computation for past three years.

●      Audited financial statements for the past 2 years.

●      The requirement of qualification documents- graduation degree or higher qualification certificates.

●      Certified copy of memorandum and articles of association.

How to apply for equipment financing?

There are 3 easy steps which you require to follow for applying for equipments loans-

Step 1- properly check your credit’s eligibility criteria.

Step 2- selects the credit amount and tenure (time duration).

Step 3- lodge your application and all the necessary documents to the financial institution in order to get the credit easily.

Once a financial institution or money lending company receives your application and documents, they will disburse credit in your bank account immediately.

Fees and charges

The rate of interest (ROI) is normally charged on equipment financing differ from case to case. It typically depends on the financial position of the borrow and certain facilities offered to him by money lending companies.