Make it or Break it

Building a new business requires passion, knowledge, an idea, research, market study, employees and client scouting but all this cannot be put into practice without finance. Sometimes the economy can take a turn and affect the business badly. Here are some of the challenges faced by businesses and solutions the entrepreneurs can consider while facing such a situation.

1. Insufficient working capital:
Capital is said to be the life blood of a business. It is necessary to have 6 months worth working capital to carry out expenses. This way, you get a breathing space where you can focus on bringing in more business, build products and also create a business plan for the near future. To avoid facing a situation where there is lack of working capital, you should cut down possible cost and save that amount to build up capital.

2. Cash in-flow:
Cash flow is of utmost importance in a business. Only when there is a cash in-flow, i.e receiving payments from clients, there will be an outflow (paying bills and salaries). To improve the cash flow, invoice clients regarding payment within 15 days. Though it is half the invoice period, it can buy you 2 week’s time to address the client in case of a delay on payment.

3. Time Management:
Can you think of the times when you were over-loaded with work and drained figuring a way out? That’s the kind of situation where time management plays a major role. In fact, if you manage time since the beginning, this kind of situation would not arise.

Here’s a smart way to spend your time:
First of all, make a list of your to-do items according to priority. Break down your set goals in terms of lifetime goals, annual goals, monthly goals and weekly goals. Once this is done, plan each one of your goal separately and work on it according to your set timeline. This way, by achieving short term goals from time to time will lead you to achieve your lifetime goal.

4. Economic Cycles:
The economic cycle can take a turn at any point of time. Even in the middle of a successful business when everything is working alright. The entrepreneur must be ready to deal with such fluctuations by keeping financial reserves which help to overcome an unexpected situation.

5. Picking wrong funding option:
At the time of crisis there are varieties of funding options you can choose from like- crowd funding, friends and family, business loans, venture capital, bootstrapping and so on. It is necessary to have clarity on each option and the risk behind each funding vehicle. There are online loan services like that can make the task of picking funding option easier by providing you with a list of lenders you can select from. The borrower can choose a lender wisely keeping in mind their needs and also convenience to repay the loan. This website is like a one stop shop for the borrowers.

What you must NOT do during emergencies

Tackle emergencies efficiently:
In a developing country like India, most middle class families save their money from time to time when they have higher than average income. This saved money is sometimes not enough to pay large bills which draw a person to borrow money from outside. Most loans are offered strictly on collateral. Sometimes the collateral given to them in exchange of money is higher than the cash the borrower receives from them. In failure of repayment or any such default, the borrower stands to face a crippling loss.

Why to choose unsecured hand loans?

3 key reasons to pick unsecured hand loans
1. The unsecured hand loans offered by websites such as provide 24*7 financial aids through financers, lenders and investors associated with them.
2. For obtaining an emergency loan at any hour, the borrower needs to pay a moderate collateral fee.
3. There is a better understanding between the lender and the borrower regarding repayment of the loan.

Don’t know what are Hand Loans yet? Read our previous blog to know it all!

Marwadi Hand Loan   A place where borrowers meet lenders
and lenders meet borrowers.

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