Achieving business growth is a common aspiration, but purchasing the necessary machinery to support that growth can be financially challenging. Conventional loans often demand collateral, which puts your business assets at risk. However, an innovative solution exists which is machinery loans without security. 

This financing option caters to businesses like yours, providing access to equipment needed for expansion without collateral.

Understanding Machinery Loans Without Security

Unlike secured loans, which require you to pledge assets like property or equipment as collateral, unsecured machinery loans rely solely on your business's creditworthiness. This eliminates the risk of losing valuable assets if you encounter financial difficulties.

Discover how Machinery Loans help in Business Growth.

The Power of Machinery Loans without Security for Businesses

Machinery Loans without security are a game-changer for businesses of all sizes and types. It allows you to:

• Get the necessary equipment without disturbing the existing property

• Enjoy a faster approval process

• Invest in a wider range of machinery 

• Seize growth opportunities

• Secure financing for future endeavours 

Why Choose Machinery Loans without Security?

The advantages of unsecured machinery loans are undeniable:

• No Collateral Risk

• Turnaround time is about 3-4 days.

• Flexible Financing

• Preserved Assets

• Tenure varies from 3 to 5 years.

• Improved Cash Flow

Learn How Machinery Loan Refinancing Can Fuel Business Growth.

Eligibility and Requirements

While unsecured loans offer greater flexibility, lenders still have eligibility criteria. Here's what you can expect:

• Should be above 21 years of age

• Business vintage of 3 years or more

• A healthy track record and positive financials are crucial.

• A good CIBIL (Above 720)

Machinery Loans without Security at Terkar Capital

At Terkar Capital, we understand the importance of streamlined and hassle-free financing to drive business growth. We collaborate with corporates to facilitate fund acquisition through various debt instruments including machinery loans without security. 

Our primary objective is to assess your business growth potential and creditworthiness, to expedite the loan approval process. We are dedicated to helping clients acquire the needed machinery to meet their specific requirements, fueling their growth and expansion aspirations.

Conclusion

Unsecured machinery loans offer a powerful and accessible path to growth for businesses of all sizes. By freeing up your valuable assets, streamlining the funding process, and providing flexibility in equipment financing, these loans empower you to invest in your future.

Remember, a well-informed decision is key. So, carefully assess your needs, compare loan offers and choose a lender that matches your goals. With the right financing, you can unlock new possibilities and drive your business to lasting success.

So, don't let a lack of collateral hold you back. Explore the potential of unsecured machinery loans and watch your business thrive!

How Machinery Refinancing Can Fuel Business Growth?

 

Machinery Refinancing

In today's competitive landscape, staying ahead requires constant innovation and efficiency. For many businesses, particularly those reliant on machinery, this often translates to acquiring the latest equipment. Machinery loans offer a powerful tool to achieve this. However, a potentially overlooked opportunity exists which is Machinery Refinancing.

What is Machinery Refinancing?

Machinery refinancing is a financial strategy that allows businesses to leverage their existing equipment to potentially improve their cash flow and business operations. It can be defined in two perspectives. 

1. One, where there is no loan on the machine - in this case, the machine itself will stand as the collateral and the funding can be arranged against it. 

2. The second one - is in a condition where the machine is mortgaged with any other financial institution with unfavourable terms or with low exposure. In this case, the funding can be arranged by taking over the loan from the existing lender and adding extra exposure. Here the loan-to-value ratio may vary. 

This can translate to lower interest rates, extended repayment schedules, or even securing additional funds for unexpected upgrades.

Learn how Machinery Loans help in Business Growth.

Benefits of Refinancing Machinery:

⦁ Reduced Costs

Introducing the new lender by taking over the existing machine will always help in term of reducing the cost. Cost in terms of interest rate, some bullet payments, increased tenure etc. 

⦁ Lower interest rates

Lower interest rates free up significant capital that can be redirected towards growth initiatives like marketing, hiring, or expanding your product line.

⦁ Improved Cash Flow Management: 

Generally, the tenure of a machine loan will be around 36 to 60 months. However, wherever we replace the existing lender, we can get an extension in the repayment tenure. So higher the tenure, the lower the cash outflow. And lower the cash flow for EMI (interest + Principal ), the higher the support to working capital.

⦁ Unlocking Additional Capital: 

In some cases, refinancing can allow you to access additional funds for minor upgrades or maintenance on your existing machinery, maximizing its lifespan and productivity.

⦁Enhanced Financial Flexibility: 

Whenever the promoters of the company /firm take up the new machine, the machine will have its own capacity to absorb the raw material. So when there is new/additional machinery you always should have the additional working capital. Then only the machine can be used at its capacity. Mortgaging the machine and getting the funds against it will always help to maintain a good financial position. 

The Case for Machinery Refinancing

For manufacturers and industrial businesses, machinery is a fundamental asset for production. However, financing this equipment can create long-term debt obligations. Machinery Refinancing offers a strategic approach to managing this debt and unlocking potential financial benefits.

Imagine a scenario where a company secures a machinery loan at a specific interest rate. Over time, market conditions may change, leading to lower prevailing interest rates. Refinancing allows the company to replace their existing loan with a new one from a different lender, ideally offering a lower interest rate and potentially more favourable terms. This can significantly impact a company's financial health.

Learn through a case study on how to get a machinery loan at Terkar Capital.

Before You Refinance:

Refinancing isn't a one-size-fits-all solution. Here are some key considerations:

⦁ Loan Terms: Carefully analyse the new loan's interest rate, repayment schedule, and any potential fees. Ensure the long-term benefits outweigh the short-term costs of refinancing.

⦁ Market Rates: Shop around and compare offers from multiple lenders to secure the most competitive rates.

⦁ Prepayment Penalties: Some existing loans may have prepayment penalties. Factor this into your calculations to determine if refinancing is truly advantageous.

Conclusion:

By strategically leveraging Machinery Refinancing, businesses can unlock the hidden potential within their existing equipment. The additional capital and improved cash flow can fuel growth initiatives, enhance efficiency, and ultimately propel your business forward. 

⦁ Remember, consulting with a financial advisor can provide invaluable guidance throughout the refinancing process. So, don't let your existing machinery loan hold you back. Explore machinery loan and refinancing options with Terkar Capital and unleash the full growth potential of your equipment!

FAQs on Machinery Finance

 

It is extremely important to keep up with new technology in order to ensure the growth of your business. The businesses have to adapt to the environment .i.e, they need to update their existing operations. It is possible to increase production by purchasing the latest machinery or by expanding it. A machinery finance will help in this case. You can avail a machinery finance at attractive rates of interest with or without collateral. This loan will assist MSMEs to increase their sales volume and, ultimately, the profit of the company. machinery finances are available to businesses to help them buy new machinery or replace old equipment. This can be due to a change in technology or damage to the previous machine, etc. To understand how the procedure execute, let's examine the following FAQs.

What is the importance of machinery finances?

India has a large number of Micro, Small and Medium Enterprises engaged in manufacturing as well as service industries. In the case of manufacturing enterprises, they require machinery to produce the goods. Such machinery can be costly and hence there comes the requirement of machinery finances. Getting a loan, particularly for the machinery, helps these businesses significantly as they can buy the required tools and equipment that will increase their productivity.

Is it possible to obtain a machinery finance without collateral?

Many institutions fund on the basis of collateral, but we arrange the finances in both secured as well as unsecured ways depending upon the availability of collateral with the borrower.

How long can be the repayment period for the machinery finances?

The tenure/repayment period of machinery finance majorly depends upon the amount required for purchasing machinery. It can be availed for short as well as long term, mostly the tenure is more than a year and can even go up to 5 years.

How much interest is applicable on machinery finances?

The interest depends on the availability of the mortgage, i.e., whether the loan is secured or unsecured. If the borrower possesses the mortgage, the ROI applicable will be lesser. Whereas, in unsecured loans, the ROI will be higher as compared to the secured one. We at Terkar Capital arrange both the products at a reasonable rate for our clients.

Who can apply for machinery finances?

All the eligible businesses can apply for machinery funding. The business engaged in manufacturing will require machineries majorly and therefore can opt for the same.

What is the procedure in Machinery Funding?

The machinery finances can be availed through the following steps,

Know the requirement: The first step is to understand the requirement of the client. This includes the details of machinery, amount required, etc

Check the eligibility: Further, we check whether the client fits in the eligibility criteria or not. The prime factors required for eligibility criteria is the age of applicant, business vintage, turnover/earnings and credit score.

Put forth the proposal: After analysing the above steps, we find an appropriate lender for putting forth the proposal and approves the acceptance.

Fulfil the documentation: In this step, we fulfil the necessary documents and send the same for sanction.

Get the funds: Finally, after completing all the above steps the funds will be transferred to the client and he can use the same for financing machinery.

Why acquire machinery finances from Terkar Capital?

The following are the benefits which we provide to our clients:

●       We arrange funding, even for the larger amount of machinery.

●       We offer machinery finances in both secured and unsecured ways depending upon the availability of collateral with the borrower and his credit score.

●       We maintain confidentiality and transparency in the process.

●       Easy access to funds.

●       We arrange a wide range of lenders and choose the best suit for the borrower as per his needs.

●       Our team of experts constantly guides the client and makes their procedure convenient.

Machinery finance is a type of loan that is used to purchase or lease equipment for a business. It is a popular option for companies looking to expand or upgrade their operations. And, we at Terkar Capital are pleased to cater to the same. In this blog post, we will answer some frequently asked questions about machinery finance to help you make an informed decision about whether it is the right choice for your business.