Shop Loan

Top 5 Simple Tips to Use Your Shop Loan Smartly in 2021


A shop loan or a business loan is one of the most prized possessions for any shop keeper. He or she would require this loan for a variety of reasons. Nevertheless, whether you own a small, medium or large scale enterprise, funding is the most essential aspect of it. However, it is pertinent to understand that a loan by itself cannot be a magic wand and an answer to all ills. It simply acts as a force multiplier. If effectively used, it has the potential to transform the business. If not, then it becomes a millstone around the neck of the business owner.  

To save you from much research and hassle, here are some of the top 5 simple tips to assist you on how to effectively use your hard-won shop loan. 

Operational Expenses

Operational costs are some of the largest shares of the expenses pie. It includes the rent, salaries of the employees, the electricity bills, products and miscellaneous expenses. While there might be cash available for that, a slow business month can prove to be disastrous for the business. It is for these rainy days that the shop loan needs to be kept aside. An MSME loan should be used very smartly to overcome present challenges. If it isn’t being used for one, then the chances of it being effective are minimal. 


Many a fine product has failed due to the absence of marketing. Marketing does wonders to the brand value of an establishment or a product. The more the penetration of the product through the marketing channels the greater the brand recognition. The world of sales is driven based on well the brand has been marketed. There are mainly two channels of marketing: Online and Offline. The offline channel is handled by field agents who advertise by going out and meeting people and telling them about the product. Online marketing can be carried out through Social Media. There are umpteen choices that can be used in the virtual world and the best part is that it doesn’t cost a lot of money. Since a larger percentage of the world spends a majority of their time online, this channel must be used to its fullest. 


One can use a shop loan to purchase new equipment. Weighing machines, cash boxes, and many other things relevant to the business can be bought using the business loan. While some may scoff at spending the loan money in buying equipment for the establishment, it is a prudent move. Anything that makes the business a profitable venture and can attract more customers needs to be invested in. One can also rent equipment. However, care has to be taken while calculating the monthly expenses, in the event, that equipment is to be rented. Only if the rent of the equipment is lower than the monthly interest repayment, should the contract be signed. Or else the venture may end up becoming a resource challenge. 

Restructure Debt

Many shop owners have multiple business debts from multiple lenders. This causes a lot of confusion as well as financial strain. It is always advisable to restructure debt and consolidate it under one lender. That way there is a possibility of saving on tax and money too. A part of the loan should also be saved for future emergencies. This goes a long way in supporting the business and hold it up when the going gets tough. 

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Expansion of Product Line

The final objective of the business loan or the shop loan is to build the business in a manner where the inflow of revenue is automated and revenue channels are expanded. One of the methods is to expand the product line. For large companies that is a foolproof way of ensuring a constant flow of funds. For small shops, this may be the introduction of a new product to their catalogue. 

Lastly, A shop loan is a necessity for most shop owners. It helps them to overcome short term financial challenges and secure long term goals. A business loan, if effectively used, can become a boon while the opposite is also true. Lastly, visit Ziploan website- An RBI registered NBFC and avail an instant business loan. Apply for the first step towards availing the financial excellence, through their seamless service and invest in your business’s expansion plan.

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