Staying up-to-date with industry best practices and improving operational efficiency are key to success for SMEs today. Investing in high-tech machinery can significantly boost your business productivity and help you stay competitive. However, acquiring modern equipment poses a significant challenge for SMEs, given the substantial capital required for the process.
This is where machinery funding can be an effective business strategy for upgrading or expanding operations with minimal impact on your cash flow. CAPSTONE provides flexible machinery financing solutions tailored to your specific needs.
How to Obtain Machinery and Equipment Financing
The steps discussed herewith will make acquiring a machinery loan a simple and hassle-free process for SMEs.
Assess Your Business Needs
Begin by evaluating the specific machinery or equipment required for your business operations. Do you want to upgrade your existing equipment, implement a new technology, or import machinery? You should also factor in the cost of the equipment and all related expenses such as installation, maintenance, repair, etc.
A thorough assessment will help you determine if machinery funding is financially viable for your business.
Choose the Right Loan Type
No two businesses are the same – why should their financing terms be the same? Consider different types of machinery funding available for SMEs and pick one that best suits your needs and budget. Some of the best financing options available in India are:
- Government schemes
- MSME-specific financing institutions such as CAPSTONE
- MSME loans from non-banking financial companies (NBFCs)
- Machinery purchase and equipment financing loans
- Unsecured business loan for MSME
Research Lenders
SMEs can explore different lending options from banks, specialised financing institutions, and NBFCs. However, researching the right lender is crucial. Compare them based on their lending terms, pre-approved offers, instant disbursa,l and no-guarantor requirements. You should also factor in interest rates, tenure flexibility and support services. This is important if you are managing various types of working capital across projects.
CAPSTONE has a network of 12+ financing partners, helping you find a lender who best suits your profile.
Check Your Eligibility and Gather Documents
Before securing machinery funding, you should ensure you meet the eligibility criteria. Lenders often require a stable business income, proper documentation, and a good credit score. You will need a high credit score when applying for an unsecured business loan for MSME.
For faster loan disbursal, ensure you have all necessary documents ready. Typically, you will need the following types of documents:
- Business owner/s KYC
- Identity proof
- Address proof
- Income proof
- Company account statement
- Facility sanction letter
- Quotation of the equipment you want to purchase
- Passport-size photograph
Loan Approval and Disbursement
The lender will approve the loan based on your equipment needs and the documents submitted. Upon approval, they will disburse the loan amount. It may take a few hours or up to 15 days for approval and disbursal.
Final Thoughts
Obtaining machinery funding becomes faster and more straightforward when you know how the process works. Get expert consultation at CAPSTONE and leverage their broad network of lenders to secure an MSME loan with low margin requirements, zero collateral, and flexible tenures.
