Explore all Credit Cards
Premium Metal
0% Forex & Travel
Lifetime Free
10X Rewards
UPI Cards
Fuel & Utility
Showstopper
Credit Builder
More
Customer Support
Explore NRI Banking
NRI Savings Account
NRI Fixed Deposit
FOREX Solutions
Transfer to NRE
Markets & Beyond
Customer Support
Explore Startup Solutions
Explore Corporate Banking
Corporate Account
Cash Management Services
Supply Chain Finance
Corporate Lending
Treasury
NBFC Financing
Customer Support
BRAVO (Auto Sweep)
Explore Business Banking
MSME Accounts
Trade Services
MSME Loan
MSME Solutions
Debit Card
Offers
Customer Support
Explore Gift City
About Us
Investors
Careers
ESG

FOLLOW US ON :

Download Now

  • App Store
  • Google Play

Notifications

  • As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on 1800 10 888 or visit the nearest IDFC FIRST Bank branch for further queries.

  • Activate your Credit Card within minutes and enjoy unlimited benefits

    Know More

  • One FASTag, three payments:Toll, fuel and parking

    The only FASTag with triple benefits

    Apply Now

FinFIRST Blogs

Credit Card Savings Account Personal Loan Home Loan Car Loan Education Loan Two Wheeler Loan NRI Business Banking Fixed Deposit Finance Beyond Banking MyFIRST Mobile Banking Startup Banking Investments Salary Account
Visit Now

What’s the next step after securing a Start-up loan?

Summary: A Start-up loan is fundamental to launching your new business. But it’s equally crucial to take a few crucial steps after securing a loan. Here’s what you should do.

17 Aug 2023 by Team FinFIRST
next step after securing a startup loan
Visit Now

As a new business owner, availing of a Start-up loan is something to consider seriously. It will help you cover the cost of starting and managing your Start-up in its initial days. For example, you can use it to pay the rent for your office, hire a talented workforce, procure raw materials and equipment for your business, and much more.

That said, after you take a loan, the top priority should be using it optimally to grow and expand the venture. This article highlights what should be done after securing a Start-up loan to manage business finances effectively.

6 Things to do after securing a Start-up loan
 

1. Ease financial management


A new business, especially an early-stage Start-up, requires investment for everyday functioning. It could be funding to buy raw materials, pay wages, expand business premises, procure new machinery, and handle marketing expenses. A Start-up loan could be used to meet these and other such expenses.

Also read: How technology is helping india’s start-ups & small businesses lift off

2. Chalk out a business cash flow plan


Business cash flow measures how much money is spent and earned during a specific period. Creating a business cash flow plan will help track how much funding exists and how much is required for future running. It will also help identify if overhead expenses need to be cut or if additional funding is required. 

READ MORE

The evolution of startup funding
Startup funding: Understanding the investment process
startup terminology for better investments
Some important startup terms budding entrepreneurs must know


 

3. Track finances


Business owners may have to conduct numerous financial transactions daily. For example, paying business loan EMIs and utility bills, clearing vendor invoices, etc. Payments from customers or clients would also be received, and amid all this, it’s easy to lose track of the finances. When Start-ups open a business bank account, they can track all of these financial transactions effortlessly.

4. Build business credit


As a Start-up expands, it requires more funding. Building business credit is essential, and doing so will increase the chances of getting future loans. Begin by repaying Start-up loan EMIs on time. Then, apply to incorporate the business, open a business bank account, and clear existing debts. 

5. Create a business expansion plan


Research competitor growth and what should be implemented to keep pace and move ahead. Define goals clearly and streamline a roadmap to achieve them.

6. Stay in touch with lenders


A good relationship with a lender plays a considerable role in determining whether the business can acquire more funding, especially after getting the initial Start-up loan; keep them updated on the progress of the business. In times of financial challenges, approaching the lender for further assistance could be helpful.

Also read: How to grow your business with more than just hard work?

To conclude


These are some of the simple first steps to take once you have received a Start-up loan. Choosing the right lender is crucial to a business’s financial health and makes all the difference when it comes to managing and running your business.

Apply for the IDFC FIRST Bank Working Capital Loan to scale up your Start-up and launch your success journey. 



 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.

Prev

How To Claim Section 80D Deduction On Health Insurance

Next

Top 7 Benefits of Health Insurance In India 2024

Related Products

Related Articles

Download IDFC FIRST Bank App

Tags

You might also be interested in:

Savings Account

Savings Account
Personal Loan

Personal Loan
Credit Card

Credit Card
Home Loan

Home Loan
Two Wheeler Loan

Two Wheeler Loan