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Savings Account

The Super Saving Accounts provides you a complete banking convenience and financial package to access your money with the ease.

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Savings Account

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  1. Why a Business Loan Is Better Than Liquidating Your Savings? Have you ever heard of “bootstrapping”? It is the term used for ‘funding a business using money from your own pocket’. Most often businesses bootstrap as it is the only option that seems suitable at that point of time because funding from any external source is often hard to obtain, especially in the early days. It’s not a secret any more that for many people the most reliable source of business funding is their personal saving. However, some entrepreneurs will still advise you on how taking business loans instead are a better alternative. Or, even if you want to use your personal savings, what percentage of it should you use. Here are some reasons why using the bank’s money is much better than using all your hard earned savings to fund your business: Why You Should Spend Business Loan and Not Personal Savings on Your Business? Read below to know the reasons: 1. Earn Returns on Your Savings While You Spend Loan Money Isn’t it convenient and intelligent to get regular returns on your savings while you can run your business from loaned money? You may not want to take all the financial help from loan money. Also, you might think, why do that if money is lying in your bank account, right? Well, in that case, you can use a reasonable chunk of your savings and then take rest of the financial aid from business loans. While it will reduce the burden of debt, you can also ensure that you get timely returns on the money still kept in the bank. Suppose, you want INR 10 lakh to start or expand your business, and you have INR 8 lakh in your bank account as savings; you could perhaps take INR 4 lakh from your savings and finance the rest INR 6 lakh from a business loan.

  2. 2. Risking All You Have in the Beginning Isn’t a Smart Choice Entrepreneurship is hard, and it can take years to break even and start making profits. And in the midst of all this, you might need more funds for working capital, new equipment, more stock or other things to keep your business running smoothly. Risking all of your savings in the initial phase of your business is not a very good idea. By doing this, you might face difficulties in getting money later for running your business. By taking a business loan, while you will retain all of your savings in your account, you can keep on reaping benefits from these savings, and can use this money later for business expansion or other

  3. activities. 3. Your Savings Will Help You during Hard Times Every business has its share of risks. You never know when contingencies may occur all of a sudden. There can be a natural calamity, an accident disabling you for a long time, or your business may fail. Uncertainties can occur any time in anyone’s life. It’s extremely critical to keep your savings account intact to sail through such unfortunate, unforeseen times.

  4. 4. Why Empty Your Savings When There Are Other Financing Options? In today’s digital age it is lot easier and quicker to get business loans. There are scores of lenders waiting to lend money for your business. You have a plethora of business financing options to choose from, such as secured business loans, loan against property, unsecured business loans, equipment financing, loan against credit card receivables, etc. When you can borrow a huge amount for your business from banks and repay in smaller installments conveniently, then why put your hard earned savings at stake?

  5. 5. It’s Not Just About Money Venture capitalists, online lenders and other types of investors don’t just bring money but much more than that to the table. You may get access to their vast network of contacts, expertise and experience. They may also open up new business opportunities for you. This kind of support and guidance cannot be leveraged if you do it all alone spending your savings without any external help.

  6. We hope that the above reasons will help you decide how you want to finance your business. Even if you opt for 50-50 financing, i.e. half from your savings and half from business loans; we suggest you do a complete research about your business type, market and success rate before taking any decision. Use your savings only if you are confident about the returns of your investment in a couple of years or so. It pays to play safe. Source: http://www.biz2credit.in/blog/2016/05/10/business-loan-better-liquidating-savings/

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