Many small businesses need to expand their scope and footprint to find new opportunities. However, their growth can stagnate if the entrepreneur can’t find the financing to fund this expansion. This is the story of thousands of MSME entrepreneurs, who work hard and aspire to build a successful business, but come up against the barrier of not having enough funding to fuel that growth.
In the case of many Kinara customers, their growing businesses finally get the boost they need to progress to the next level when they finally get access to formal credit. Certain businesses, especially those that deal with perishables, need to run their operations very efficiently so as to avoid losses. In such cases, expansion beyond a certain threshold can become very challenging.
A timely business loan can help such businesses execute expansion plans without eating into their rolling budget, which is essential to keep their operations running smoothly. Kinara Capital provides such MSMEs with working capital loans, which they can utilize to cover business expenses, or invest in business growth initiatives.
R Kungumaraj started his vegetable distribution business, S.S.K. Vegetables in Dindigul two decades ago. The business model was a simple one: he would buy vegetables wholesale and distribute them across locations in Tamil Nadu.
Given that the demand for fresh vegetables is consistently high, his business took off right away, and even showed a healthy amount of growth. He was happy with the momentum of his business growth, but had bigger plans for the future. Given that vegetables are perishables, he had to plan and run his business carefully to maximize efficiency and profitability.
After nearly 15 years of running his business at a steady pace, Kungumaraj realized that it needed a financing boost to expand to new territories and keep growing. He had seen a good deal of success in his trade, but he didn’t readily have the funds to invest in business growth.
Not having the wherewithal to give his business room to grow could mean stagnation and eventually losing out on new opportunities, so he felt frustrated and disappointed.
In 2016, Kungumaraj came across Kinara Capital and decided to opt for a collateral-free business loan, which helped his enterprise start growing again. After that initial boost, he opted for another loan in 2018, which further boosted the growth momentum of his business.
Kungumaraj invested the loan amount he received from Kinara into expanding his operation, ramping up his distribution capacity by doubling his workforce. He was able to expand his business to serve 5 additional regions, automatically boosting his turnover.
His living standard also improved, as his business became increasingly profitable. As his income increased, he was even able to buy some land and build a home from his family. This is a matter of great pride and happiness for him, since it marks not only business growth but also personal success.
He shares, “After taking the loans from Kinara, I was able to start supplying vegetables to 5 additional locations. This strengthened by cash flows, and I also expanded my workforce from 7-8 employees to around 15 at present. My turnover used to be around Rs. 30-35 lakhs, and since taking the loans, it has shot up to Rs. 50 lakhs! This growth is all thanks to Kinara, and I will definitely seek their support again for the future growth of my company.”
Kungumaraj is one of 75000+ MSME entrepreneurs in India who have benefited from Kinara Capital’s collateral-free MSME business loans. Kinara Capital, an RBI-registered, Systemically Important NBFC in India with an aim to empower the MSME sectors has disbursed 100,000+ business loans worth INR 6500+ crores to date. With its branches across 4500+ pin codes, Kinara provides doorstep services in vernacular.
To get a business loan for your small business, check your loan eligibility in 1 minute in the myKinara App by downloading it from the Google Play Store, with 7 language options available, choose your preferred vernacular. Also, we have a dedicated customer support team available between Monday – Friday (9.30 AM – 6.00 PM) at our toll free number 1800-103-2683 for any questions or assistance. This ensures that entrepreneurs can get the help they need throughout the loan process.
