India, being a nation of festivals, offers a wide range of opportunities for the establishment and expansion of micro-small-medium enterprises (MSMEs). The festive season is the perfect time to succeed in a market and most business deals, commercial transactions and income increment happens during this time. However, this requires financial backing and support, which comes from the banks and other financial institutions that provide working capital loans for small enterprises.
Various financial institutions like Kinara Capital help MSME businesses to become established and expand by providing huge financial support during festive time on reasonable terms. The demand for many goods and services increases significantly over the festive season. Financial institutions witness an increase in demand for working capital loans as small firms have to plan ahead to satisfy the demand, which results in greater production and stock levels and more money invested in working capital.
Nowadays, in the age of digitalization, obtaining a quick business loan online is not a difficult task. Numerous consumers who request working capital loans will receive it instantly through various platforms. Further, online banking these days makes it simple to process a business loan for a consumer without the necessity of physical presence.
Festive seasons are usually a prolific time for the manufacturing sector. Every year, manufacturers employ casual workers, ramp up production and achieve record sales in the months prior to the holiday season as they experience a particularly strong uplift. According to a recent survey report on ETRetail.com, published on September 23rd 2022 approximately 65% of households nationwide want to spend money this festive season. So, it is the right chance for manufacturers to introduce their products to the market, increase revenue, take market share and build brand awareness.
It can be difficult to succeed during the busiest time of year. More production barriers appear when the level of competition rises. Because of this, manufacturing companies need to create and implement specialised operating plans that will help them perform well during peak times. When they do, their buyers or retailers can keep their shelves stocked, consumers can, in turn, purchase the things they want, and business profits increase.
Manufacturing MSMEs require very specific job skills. Finding enough well-trained, reliable staff is often difficult for manufacturers at any time, and doing so in the lead-up to the holiday season is near impossible. If you own a manufacturing company with limited staff, you may find it difficult to handle the normal stresses and pressures that peak festival season brings.
Manufacturers should consider investing in additional staff well before the lead up to the festive season. This may entail hiring unskilled workers or individuals from a similar industry and training them to work in the warehouse or on the production line in a particularly competitive labour market.
Customer demand reaches its zenith during the festive season and the supply chain operations become even more critical. Festive season is a time when suppliers and service providers frequently fall short of normal performance expectations. A single supplier may provide many hundreds of manufacturers, and many of them might be placing larger orders than usual in the run-up to the festive season, putting even more strain on your suppliers. It is possible for reliable suppliers to miss deadlines without providing an explanation. Sometimes, suppliers may fail to deliver altogether.
Even while some degree of subpar supplier performance may be unavoidable during peak season, it's crucial to stay away from extremely subpar vendors. Try different suppliers if your current ones don't fulfil commitments during busy times. Ask for information from prospective suppliers regarding their capacity to withstand supply shocks and deal with seasonal challenges.
MSME business owners should begin their planning as soon as possible to benefit from the festive season sales. You might also think about accepting pre-orders for the impending sale, depending on your target market and the products you are offering. It will keep your clients or partners interested and anticipating what you have in store. In this manner, you can ensure your sales before the season even begins!
MSMEs are crucial to India's economic development as they contribute to about 1/3rd of its total GDP. All small business owners seek possibilities to increase sales during the festival season. Every MSME business owner should seize the festival season as an opportunity to boost their business with working capital. MSMEs can make the most of it by investing in stock purchase or raw materials purchase, replenishing inventory with increased production, diversifying business ventures or introducing new product lines.
Many lenders are offering collateral-free working capital loans to small business owners who possess a valid MSME registration to help them receive funds to stock up for this festive season. Selecting the best lender to get MSME financing can be challenging for small business firms.
One of India's top digital lending platforms, Kinara Capital, offers working capital loans during the festive season to support the expansion of the MSME sector. Check your company's eligibility within a minute for a quick business loan right now with the myKinara app or visit this link Kinara capital.
