Business Loan Used For:
Working capital
it’s the cash buffer that keeps the lights on while customers take their sweet time to pay.
You run a small trading business:
Cash + inventory + receivables = ₹10 lakh
Payables + short-term dues = ₹7 lakh
Working capital = ₹3 lakh
Equipment purchase
A business loan allows a company to buy essential equipment without blocking its working capital, so operations continue smoothly while the asset pays for itself over time.
A small manufacturing unit takes a ₹10 lakh business loan to buy a CNC machine. The machine increases production and monthly revenue, and the profits are used to repay the EMI—the business grows without cash-flow stress.
Office Expansion
A business loan helps open a new office or upgrade workspace without draining cash reserves.
Example: A service firm takes a ₹15 lakh loan to open a second office, increasing client capacity and revenue.
Inventory Financing
A loan allows bulk stock purchase to meet demand and secure better supplier pricing.
Example: A retailer uses a ₹5 lakh loan to stock up before the festive season and sells faster at higher margins.
Marketing & Advertising
A loan funds campaigns that drive immediate visibility and sales growth.
Example: A startup invests ₹3 lakh from a loan into digital ads, generating steady leads within months
Debt Consolidation
A loan combines multiple high-interest debts into one lower-cost EMI.
Example: A trader merges three loans into one business loan, reducing monthly EMI and improving cash flow.