Approach to get funding to start an Engineering jobshop in India

If you are planning to start an Engineering jobshop with Metal working machinery , Plastic injection moulding machines or wood working machines then you should check with finance companies with different approach

Buying MACHINES in India has always once question at top, " What is best price of your machine " ?. Such questions can have many multiple questions. Apart from machine price, following are very important things while buyuing any engineering machines.

  • Machine manufacturer history
  • Machine supplier History - If its used machines then his experience of trading
  • Sales support - if he is broker then what kind of support
  • Service support - Any local office in your town or city ?
  • Spares and consumables
  • Resale value

After getting above information, raising finance is equally important. Most of high value equipment supplier claims for running cost based on power, gas, coolant, tools etc but Engineers must think that its also your monthly payment to your Bank and your Land is also major part of your business expenses which you have to pay even in your worse time like COVID. You can not get rid of this even if your machine which is very good but just idle.

so while buying Used machines or new machines, please check finance options.

  • Your current bank - The first institution you think is your own bank where your account is. You simply go to Bank and meet the manager and propose your basic idea of engineering jobshop. They know your credit rating and they can tell you very easily the amount of finance they can give you.
    • Be hard negotiator like you do with your machine supplier.
    • Ask for the options of lease if your bank is having this option.
    • Ask for the similar kind of machines if your bank has given to any of their clients. This will give you many information.
    • Ask your friends & relatives for the same.
  • Other banks
    • Competition always nice.
    • If you have good track record and your existing bank is taking you for grnated then there are many options.
  • Leasing Companies
    • Lease concept is new to India and very few options available. but its really good option if you are not sure what will happen after 2 years.
    • if you have specific project of specific time then lease can be really great option. Take the work, Take the equipment on lease and go ahead
  • Private finance companies
    • Now many private finance companies which are very aggresive for equipment,used machines and new machines.
    • Their rate of interest is higher but they take more risk on behalf of you.

More the options you explore, more the information you will get....keep checking