According to the latest data by the Institution of Chartered Accountants of India (ICAI), during the session of August-September of FY2019, different companies offered almost 2923 jobs to eligible chartered accountants. These statistics clearly hints at the demand of credible CAs in India.
The primary function of a chartered accountant involves the strategic decision-making of both personal and corporate finances so that the concerned entity can achieve their business goal.
Nonetheless, just like other independent practitioners, they also need to infuse funds occasionally to increase their working capital. In this regard, CA loan can be an excellent option that can help grow their business over time.
Six ways how chartered accountants can boost their business
The following are the six effective ways for how additional funds can help a chartered accountant fulfill their professional agendas.
- Financing working capital
Chartered accountants also need to bring a balance between their working capital and financial liabilities. To assist with this, a professional loan can prove to be beneficial. The usage of the same includes –
- Tackling day to day expenditure- Working capital is an integral part of handling different professional needs, starting from paying salaries to repaying small debts. Therefore to manage such expenses, a CA loan can be a great financing option for chartered accountants.
- Fulfilling shortage of working capital- Often it happens that due to recurring expenditure, an organization’s working capital goes down drastically. Here also they can replenish the fund with a loan customized for chartered accountants.
2. Setting up a new office
Setting up and designing a new working place requires substantial funding, which can cause considerable financial strain if it is not well-planned. Such an initiative includes –
- Buying new furniture
- Electric work
- Installing safety equipment like fire alarms, CCTV, etc.
Irrespective of the requirement, chartered accountants can make use of the funds from a CA loan and procure the necessary equipment, without utilizing the firm’s funds. However, before executing the plan, they should follow a step-by-step guide to start a new CA firm.
3. Funding business expansion
Apart from setting up a new office, substantial expenses can incur due to other professional requirements; for example, hiring specialized employees, investing in any new technology and similar endeavors. NBFCs like Bajaj Finserv can offer ample funds to mitigate such financial requirements.
They also extend pre-approved loan offers that simplify the loan application process. Such a facility is available for a range of credits, including business loans, personal loans, etc. All you have to do is enter your name and contact number to check your pre-approved loan offer.
4. Repay debts efficiently
Getting rid of financial liabilities on time is essential for establishing a successful business. Moreover, the situation worsens if there are multiple such debts involved, such as outstanding business credit card balance, EMI of a business loan, etc.
Such debts can snowball into a large debt and consequently lower your credit score by a significant margin. Therefore, timely repayment of debts can be considered as one of the top tips that every practicing CA must keep in mind. Nonetheless, with the additional monetary support of a CA loan, you can come out of the debt trap quickly.
5. Tackle any sudden expenditure
A sudden requirement for cash can pop up anytime, and you need to manage that efficiently to ensure the smooth functioning of your firm. For instance, consider that you have cracked a big project, and for that, you require additional resources to deliver results within the stipulated time. In such a situation, you can secure funds as a CA loan and make the most of the borrowed amount.
Top lending institutions offer credits of up to Rs.25 lakh as a business loan without pledging any collateral. Such borrowing options come with facilities like quick approval and disbursal, making it a perfect choice to address any financial emergencies.
Apart from these ways, you can also use the borrowed funds from a CA loan to suit your varying purposes. However, before applying for such a credit, you should compare different lenders to get competitive interest rates and learn about other essential terms of service.