Industry figures reveal that there are approximately 3 lakh chartered accountants in India serving as financing and accounting guides, amid other commerce verticals. Full-time practicing members make for almost 1.25 lakh in number, and it is safe to assume that this count is only set to increase.
In this backdrop, one can understand that there may be greater traction of setting up or expanding practice by CAs. Thus, in that regard, suitable financing options like a loan for chartered accountants can provide the necessary capital.
How does a loan for CAs aid in practice expansion?
Loans for chartered accountants include customized funding options suited for the unique financial needs of such professionals. Here are some of the ways in which these loans for CA can be of much use –
- Financing the growth of a running practice
Every practice expansion initiative with growth-oriented goals needs considerable capital. A professional loan for the chartered accountant of up to Rs.25 lakh is thus easily available for such purpose today.
For instance, if you want to add a new functioning department, not only domain experts have to be engaged, but also expenditure to be incurred for the extension of accommodation and workstation set-up.
The professional loan thus allows for the scope to pay monthly installments for such expenditure instead of spending an enormous sum of money at one go from one’s saving.
- Acquisition of new premises
Usually, new offices have to be set up in case of expansion of practice. It would require doing up the interior as well as installing fitments. In this case, instead of utilizing the business’s finances, the funding availed from loan for chartered accountants can be used.
- Financing working capital needs
When expanding the practice, it is also important that current assets and liabilities are balanced. In such an instance, options like a Flexi Loan facility help effectively manage the working capital needs of the practice.
The facility ensures that funds can be withdrawn from the sanctioned limit, and interest is paid only on withdrawn amount. It is one of the main features that will make you choose Flexi Loans for CAs over term loans.
- Purchase of assets
Loans for chartered accountants can also be utilized to obtain business assets like vehicles, commercial premises, computers, laptops, etc. All of these require substantial investment.
- Meet unexpected liquidity needs
Professional loans would also help in meeting the unanticipated liquidity needs of an expanding CA firm. For example, if setting up of a new office takes more time than estimated, the running expenses would escalate.
Availing Flexi Loan here would again ensure that the required fund is conveniently withdrawn from the available limit. This way, the finances of the business would not be negatively affected.
Moreover, to avail such loan, no collateral is needed, whereby the application process is streamlined too.
The process is further facilitated by NBFCs such as Bajaj Finserv through their pre-approved offers which enable convenient and quick financing. Such offers are available on business loans, personal loans, and several other credit options. You can check your pre-approved offer by submitting basic details like name and contact number.
- Repayment of debts
Defaulting on repayment of debts can adversely impact the expansion of the practice. If the CIBIL score reduces, it would become increasingly difficult to obtain credit in the future. These loans can thus be effective in consolidating debts of the business.
Maintaining such practices ensures that the creditworthiness of a chartered accountant is impacted positively, which would further help in funding practice expansion.
While these are the primary reasons why you should consider a chartered accountant loan for your firm, there are other benefits as well. For instance, your long-term liabilities are capped as well. Given the flexible term of repayment of a loan, a chartered accountant can easily manage their liabilities from such advances.