A working capital loan is a type of advance that helps a business fund its day-to-day or short-term operations. A working capital business loan can be used for various purposes as mentioned below :

  • Procure raw materials
  • Purchase inventory
  • Pay for overhead costs like electricity, rent, salaries and other utilities
  • Finance blocked payments from debtors
  • Pay suppliers in advance
  • Maintain a healthy level of cash
  • There can be several times when your business can need small business working capital financing as it helps you manage sales fluctuations
  • Acts as a cash cushion
  • Prepares your business to take up a bulk order
  • Stabilizes and boosts cash flow
  • Equips you to leverage business opportunities

Features & Benefits  

   

Flexible withdrawals and repayments

It can be term loan as well as with overdraft facility as per your convenience.

High leveraging

Working Capital finance can be availed against your property with high loan to value up to 120%.

Streamlines your cash flow

Working capital loans allow you to operate normally during cash crunch and cyclic upheavals in sales and revenues by providing ready cash at hand.

Improves Financial Health

It allows the business to be financially solvent at most of the times and thus evading any Business troubles that could have arisen due to lack of working capital. Higher profitability would imply higher return on capital employed. This, in turn, would attract more capital from prospective investors leading to the unlocking of further capacities.