Running a seasonal business is like riding a rollercoaster! There are exciting highs during peak times, followed by those quiet stretches that can leave you feeling a little empty (in your wallet, that is!). Sound familiar? Don't worry, many seasonal businesses experience these ups and downs.
The good news? There's a financial tool called a term loan that can be your ticket to smoother sailing. Think of it as a helpful hand up, getting you over the cash flow gap during the off-season.
But, before we dive deeper and see how term loans can help you, let’s understand how to ensure smooth operations during peak business seasons.
Also Read: How To Make Your Business Season Ready?
How to Run a Seasonal Business? Buckle Up!
Seasonal businesses experience predictable fluctuations in revenue. Think ice cream parlors booming in summer and toy stores bustling during holidays. The key to success lies in planning and resourcefulness. Here are some tips:
Term Loan Meaning: Your Financial Bridge
You must have heard of term loan before. Maybe you often wondered, “what is a term loan?”. In simple terms, a term loan is a fixed amount of money borrowed from a lender, to be repaid over a set term. This can typically range from 1 to 5 years. It's like a bridge that gets you over the cash flow gap during slow season.
Term Loan Interest Rates: Understanding the Cost
Term loans come with interest rates, which is the cost of borrowing the money. These rates can vary depending on factors like your credit score, loan amount, and loan tenure. Generally, shorter-term loans have lower interest rates than longer-term ones.
Also Read: How Does Your Credit Score Impact Interest Rates on Loans?
Also Read: Loan Tenure: All You Need to Know
Term Loan EMI Calculator: Plan Your Payments
Equated Monthly Installment calculator or EMI calculator helps you estimate your monthly loan repayment amount. This helps you understand how the loan will impact your cash flow. Click here to use business loan EMI calculator.
Term Loan Example: Let's Make it Real
Imagine you own a beach equipment rental shop. Your summer season is booming, but winter brings a significant drop in revenue. You can apply for a term loan of INR 2,00,000 to cover expenses during the slow winter months. With a 2-year repayment term and an interest rate of 12%, your EMI would be around INR 12,000. This provides a financial cushion to manage payroll, rent, and other fixed costs.
What is a Term Loan vs. Short-Term Loan vs. Long-Term Loan?
Term Loan Benefits: Weathering the Storm
Here's how a term loan can be your financial anchor during the off-season:
Advantages of a Term Loan for Business Growth
How to Apply for a Loan for your Business?
Many lenders offer the convenience of applying for an instant term loan online. Apply online for term loan. This saves time and allows you to compare rates and terms from different lenders.
Now that you understand how term loans can be your financial savior during the off-season, let's explore how to get one for your business. The good news is, applying for a term loan can be a relatively straightforward process, especially with many lenders offering online applications.
Here's a step-by-step guide to get you started:
Here are some key terms to keep in mind while comparing:
Also Read: How Does Your Credit Score Impact Interest Rates on Loans?
Remember: A term loan is a valuable tool, but it's important to use it strategically. Carefully analyze your financial needs and compare different loan options before making a commitment. With careful planning and the right term loan, your seasonal business can not only survive the off-season but thrive throughout the entire year!
Godrej Capital Business Loan: Your partner in growth
Godrej Capital Flexi Funds: Instant Loan Access
To help small business owners manage their cashflow smoothly, Godrej Capital recently launched Flexi Funds. Flexi Funds is Overdraft-like facility that gives you a pre-defined sanction limit. It lets you withdraw and repay utilised amount as per your convenience. The best part is that you only need to pay interest on the amount you used. With Flexi Funds, get instant access to funds without the hassle of lengthy loan process.
Get started. Apply now for Godrej Capital Business Loan today!
Also Read: Is an Overdraft Facility Better Suited for Your Business Than a Term Loan?
Disclaimer:
The contents of this article are for information purposes only and not a financial advisory. The information is subject to update, revision, and amendment and may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements.
Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any decisions, financial or otherwise based on the contents and information mentioned. For more information, please visit www.godrejcapital.com