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Many people who are business owners are known to be good in handling money and resources. But it can’t be denied that there are also business owners who are reckless in spending and using their financial resources properly. If you’re planning or just starting a business, you should know the importance of saving for future growth. 

Business owners who want to build a successful business need to learn wise financial decision-making. They should open and maintain a business savings account where they can set aside their money and prevent themselves from wantonly spending it. Saving and managing your money well play a big role in moving a business forward. 

To paint a larger picture of the importance of having business savings account for business growth, read this article. 

Strong Position for Acquisition

Saving money and managing resources can help your company grow even if the economy is faring poorly. In such an unfortunate state of the economy, businesses who are prudent in managing their resources have more chances of surviving and even expanding as their rivals stumble. 

For instance, when you have enough savings, you can acquire a business that is in dire financial straits and grow your business holdings. Or, you can hire the best people to make your company more competitive. Having one individual who can do his/her job efficiently and productively is better than two people who don’t have the same skills as the former. 

Another edge of having excellent financial savings is that you can easily get hold of intellectual property and product knowledge. In this way, you can keep ahead of the competition and expand your business. You can go here/read more here if you want to learn more about managing your financial resources. 

Keeping and Improving Business Operations

A business owner or leader should not be shortsighted in his/her vision. He/she needs to consider the changes that need to be implemented to keep ahead in an increasingly competitive market. 

This means that you should know where and how to invest your financial resources to maintain or improve business operations. Some business investments are only achievable if you have cultivated the discipline of managing your finances well. 

Learn from the best companies today. Companies like Amazon and Apple can attest why it matters to companies to have a strong cash position that can come in part through saving and using their financial resources wisely. When you have sufficient money, you can make the necessary changes and finance big projects to expand your company. 

Spend and invest your business resources responsibly to hit the big goal. A business leader should always have this mindset and discipline to keep on moving forward. 

Buffer Against Emergencies

Not at all times that your business will record good sales. In an entire business year, there are seasons when sales are low and your finances are drained. If you’re new in a business endeavor, you should expect the unexpected. 

That’s why you should have enough savings from which you can get money to cover expenses to keep your business operations in times of such a difficult financial situation. Great business leaders are always prepared, and they know that there comes a time for testing their ability to navigate financial difficulties. 

Moreover, there are market changes that can negatively affect your sales. For example, new competitors enter the market or the tastes of consumer change. These are significant factors that you should not just throw out of the window. You need to respond to these market changes to avoid losing your customers and attract new ones. 

There are also technological advances that change the way you do business. For example, Artificial Intelligence (AI) is one of the new technologies that disrupt the old business landscape. Now, staying competitive means that you need to invest in new technologies. And you need money for that! 

Opportunities may also present themselves in times when you least expect them. Another reason you should have a business savings account to grab these opportunities and propel your company to success. 

Rewarding Your Staff

Your staff and employees are essential to your business. Thus, it makes perfect sense to give them importance and reward them for their work. Of course, there are more ways than one to reward your staff and employees, but surely the best one is a financial reward. 

 

You can give them a raise or bonus to incentivize them to continue the good work that they’re doing. Set aside a percentage of your surplus profit in a business savings account to cover these rewards for your staff and employees. 

Takeaway

Saving is essential in a business. The financial resources you saved can be invested in things that can help grow your company and protect it against financial emergencies. That’s why every company must have a business saving account for this purpose.

Did you know that Delhi comprises 63% of India’s total real estate investments? Home to attractive cuisines and shopping arcades, Delhi’s property market is soaring as well. The city houses some of the most premium residential real estate hotspots filled with high-rise apartments, luxurious bungalows, and more.

Besides, the city accommodates lenders that offer easy home loans to finance your housing goals. What’s left is for you to partner with a good residential builder to get your dream home ready.

So, if you’re looking to invest in a property in Delhi, here are the city’s top residential builders.

DLF

DLF, one of India’s most prominent real estate developers, provides residential buildings in all three categories – luxury, premium, and super luxury. Whether you’re looking for apartments, duplexes, or condominiums, DLF presents the best-in-class property construction. With over 70 years of experience under its belt, this residential builder has an impressive portfolio of building customized ready-to-move-in properties.

With home loan interest rates at the lowest, you can easily purchase a DLF space with housing finance.

Emaar India

Emaar India is yet another leading residential builder with a robust pan-India presence. The company is known for developing residential properties, including high-rise apartments, 3BHK and 4BHK flats, retail cum commercial multi-storied buildings, flats, and more.

They have various living spaces across Delhi and Gurugram. Besides, the properties are equipped with world-class drainage systems, multiple acres of open green area, well-planned internal roads, gymnasium, clubhouses, and more facilities. 

Raheja Developers Limited

Raheja Developers Limited (RDL), founded in 1990, is headquartered in Delhi and has over 30 years of experience building the city’s residential landscape. One of the most trusted developers in the city, RDL has built numerous premium projects in Delhi and Gurgaon. The Raheja Ridge Castle in Mehrauli is a prominent example of their A1 services and why you should consider RDL as your residential builder.

Fulfil your preferred lender’s home loan eligibility conditions to quickly reserve a luxurious villa, spacious townhouse, or a chic apartment from RDL.

DGR Homes

If you’re looking for a top-of-the-line builder with affordable offerings, DGR Homes is your go-to. Also known as Delhi-Gurgaon Realtors, DGR brings their vast home-building experience to the table. The company offers well-crafted, pocket-friendly residences in Delhi. Their best examples include the Green Apartment (Chattarpur Enclave), North End Tower (Chattarpur), Aravalli Apartment (Mandi Estate), and West End Tower (Chattarpur).

While DGR Homes’ offerings are reasonably priced, you can also use housing finance to build your property without any financial hiccups. At feasible home loan EMI rates, find the most-suited loan offer, and you’re good to go.

In conclusion

With such accomplished builders available, constructing and moving into your desired property in Delhi is easier today. If you’re short of capital, turn to a reliable lender with easy home loan options. Most lenders provide a home loan EMI calculator to check your EMIs and interest payable beforehand. So, what are you waiting for? Book a site visit today!

It’s typical for businesses of any size to fall short in the financial department at some point. But while some financial problems can wait, others need to be addressed right away. Else, it can seriously harm the business’s future.

The problem is, securing quick cash can be challenging and frustrating. Banks typically have a lengthy process for their loan applications. Pitching investors can also take a lot of time, which you may not have.

If you find your business in this situation, it would be best to have a lineup of options at your disposal. To prepare you for this matter, here are the things you can do when your business needs quick cash.

Secure Financing Online

There are a growing number of online lenders like Personal Money Store that you can access for quick financing. They are a great option in terms of convenience and efficiency. All you need to do is submit your application through their platform. Many of them claim to give loan decisions within minutes or hours, so you can get the fund you need instantly.

Besides that, online lenders are also known to be more lenient when it comes to their qualifications. Even if your business doesn’t have stellar credit, you’re still likely to get approved. However, they might only be able to provide a modest amount of funds. You may have to consider other options if you need a sizable loan.

Use Line of Credit

A line of credit is a flexible financing source if your business needs quick cash. It simply works the same with a credit card where you can borrow funds anytime you need as long as you don’t exceed the approved credit limit. Since it’s also revolving, your credit limit goes back up whenever you make a payment for the amount you borrow.

Note that you don’t have to use your total credit limit. You can just take how much you need and pay only the portion of the money that you borrow along with the interest. But most lenders may allow you to repay the full balance early to save on interest costs.

It’s also worth pointing out that the borrowing limits of a line of credit are smaller than a term loan. Typically, it may range from $1,000 to %250,000. If you need a larger amount, this may not be the most suitable option.

Utilize Accounts Receivables

If your business has large outstanding receivables, it might be a good idea to utilize them and free up some money for immediate financial need. You can do it by selling these account receivables to factoring firms. The factor will then write your business check minus the fees, which usually range from 2% to 5%.

Although factors don’t consider your business credit history, they give much importance to the customers’ ability to pay when assessing risk. Thus, this can be a viable source of quick cash only if your business has a lot of orders coming in.

Acquire Microloans

The Small Business Administration has a microloan program for business owners. They have 150 approved microlenders you can reach out to, whether you’re looking to increase working capital, buy inventory, or cover payroll costs. However, these microloans can only provide up to $50,000, and their interest rates are generally between 8% and 13%.

Additional Options To Consider

Taking out a loan or getting financing might seem the most suitable solution if your business needs quick cash. But there are additional sources you can look into that might somehow help you raise the necessary funds.

If your business is in desperate need, it wouldn’t hurt to include the following routes in your options.

• Cut Back On Expenses: Your business probably has expenses you can cut back for the time being, such as repainting your building or buying new equipment. During a cash shortage, prioritizing your company’s expenses is necessary. As much as possible, focus on the costs that keep your business operational and generate revenue.

• Sell Non-Essential Asset: Besides cutting discretionary expenses, you also have the option to get rid of non-essential assets in your business. These can be idle equipment, commodities, or properties that are no longer used or don’t generate revenue for your business.

• Ask Help From Personal Network: If pursuing a lender is not something you think your business is ready for, you can ask help from your personal network, such as family and friends. Though this might seem an uncomfortable option, it’s a solid alternative. Just make sure to write up a contract that signifies repayment terms to avoid conflict. Doing so can reassure them that you hold yourself accountable.

Prepare Your Business For Better Cash Flow

Financing is a helpful tool to get quick cash for your business immediate needs. But if financial shortages keep recurring in your business, loans are only a temporary fix. You need to be proactive when it comes to your business’s finances. It would be best if you try to tighten up your business operations, use management accounting, or monitor key performance indicators like sales and profits.

Providing all the required documents is of paramount importance when applying for a home loan. A lender assesses your creditworthiness basis your documents and calculate if they should lend you money. Probably, this is why home loan applications are rejected often, if the documents are incomplete or contain false information. One of the documents that lenders ask you to submit mandatorily is income proof that includes income tax returns. Experts opine that the lenders can reject your loan application if you fail to provide your ITR.

To know the importance of ITR for a home loan application, read on.

What Is an ITR?

An income tax return or ITR is a form where you file or input information related to your income and taxes. It is mandatory to file income tax returns for people whose income is above Rs 2.5 lakhs. However, experts opine that filing IT returns is a good practice even if your taxable income is below the threshold limit. Your ITR contains details of the income earned through all sources like salary, business, interest etc. and taxes to be paid during the year.

Why Is it Important to Submit ITR for a Home Loan?

ITR is an essential part of income proof that you need to submit with the rest of the documents for a home loan application. Through income proof, the lender can determine your creditworthiness and income. An ITR serves the following purposes for the lender –

It helps them understand your financial stability

Typically, you need to submit the ITR of the last three years. Through the income tax returns, the lenders can find out your annual income. They need to ensure that you have a steady flow of income so that you are able to pay the instalments without any default. Moreover, you need to be employed for at least three years to be eligible for a home loan. The last 3-year ITR shows the lender that you have a stable job and receive a steady income every year.

It speaks about your repayment credibility

Filing your ITR speaks volumes about your credibility and responsive nature. It shows that you are abiding by the rules and fulfilling your responsibility. It also indicates that you would be diligent in your Home Loan EMI payments. When the lenders know about your income, it is usually easier for them to determine your creditworthiness and decide if they want to lend you a loan.

A home loan is an easy way to finance your dream home. Therefore, you should submit all the relevant documents accurately, especially your ITR. There are high chances that the lender would reject your loan application if you do not submit your ITR while availing a home loan. Make sure to submit accurate information in order to lower your tax liability by claiming deduction up to a certain amount. Penalty ischarged for late Income Tax Return filing, hence, file your tax returns before the financial years ends.

A housing or home loan is an excellent financial instrument that gives you the money you need to purchase or construct your dream home.

You may get several benefits from a home loan, which includes tax benefits, minimal documentation, long loan term, easy eligibility, low interest rate, a convenient application process, and quick loan approval, without moving an inch from your room.

On using a home loan calculator and entering details such as the loan amount, term, and interest rate, gives you a detailed estimate of the EMI and the loan amortization schedule, which can help you to plan the loan amount and term.

While it is true that, presently, home loan interest rates are at their multi-year lows, you can save more if you know about home loan tax benefits.

The Tax Benefits of Home Loan You Should Not Ignore

1. Tax Deductions of up to INR 1.5 Lakh

Section 80C of the Income Tax Act enables you to claim tax benefits of up to INR 1,50,000 lakh on your home loan principal repayments. You can get this benefit only if you use the amount for the construction or purchase of a residential property. There are two rules you have to keep in mind to claim home loan tax benefitsunder this section.

Rule 1 – In the case of house construction, it should finish within five years from the date of loan approval.

Rule 2 – If you sell or transfer the property before five years from the date of home loan approval, the tax benefit will be reversed, and you will have to pay tax on the total income in the sale year.

Hence, if you want to save up to INR 1.5 lakh every year, use a home loan calculator and select the right loan amount, you need to save more.

2. Tax Deductions of up to INR 2 Lakh

Section 24B of the Income Tax Act enables you to claim tax benefits of up to INR 2 lakh on your home loan interest repayments. There are two types of tax benefits that you can claim under this section.

1. During the pre-construction period – You can claim a tax deduction if your house is under construction and you need to pay the home loan EMIs. When you use a home loan calculator, it displays the amortization chart, which contains a detailed representation of the principal and the interest. You can use the interest amount (paid or payable) while calculating the home loan tax benefits. However, you can claim such tax benefits for five years and in five instalments from the date of loan approval.
2. During the post-construction period – If you have started living in the property and pay the home loan EMIs, you can claim a tax deduction of up to INR 2 lakh every year from the date of loan approval. If you let out the property, no upper limit for interest deduction would be applicable.

3. Tax Deductions of up to INR 50,000

If you do not own a house and live with someone else, Section 80EE of the Income Tax Act encourages you to purchase or construct a house. On buying your first home, you can get home loan tax benefits of up to INR 50,000 on the interest component. Moreover, you can get the deductions over and above the benefits you are getting under Section 80C and 24B.

Conclusion

If the many benefits you get from a home loan doesn’t prompt you to avail a loan, the tax benefits surely will. Ensure that you apply for a no-terms-hidden home loan from a reputed lender like PNB Housing to get the maximum tax benefits.