Working Capital Loans from Top Lenders
Working capital loans of up to 15 crore Funds were disbursed in only 3-7 days. Loan processing is simple and seamless.
What Is a Working Capital Loan?
A working capital loan is a loan that is taken to finance a company’s everyday operations. These loans are not used to buy long-term assets or investments and are, instead, used to provide the working capital that covers a company’s short-term operational needs.
Those needs can include costs such as payroll, rent, and debt payments. In this way, working capital loans are simply corporate debt borrowings that are used by a company to finance its daily operations.
KEY TAKEAWAYS
- A working capital loan is a loan taken to finance a company’s everyday operations.
- Working capital loans are not used to buy long-term assets or investments; they are used to provide working capital to covers a company’s short-term operational needs.
- Companies with high seasonality or cyclical sales may rely on working capital loans to help with periods of reduced business activity.
- Working capital loans are often tied to a business owner’s personal credit, so missed payments or defaults may hurt their credit score.
Understanding Working Capital Loans
Sometimes a company does not have adequate cash on hand or asset liquidity to cover day-to-day operational expenses and, thus, will secure a loan for this purpose. Companies with high seasonality or cyclical sales may rely on working capital loans to help with periods of reduced business activity.
Sometimes a company does not have adequate cash on hand or asset liquidity to cover day-to-day operational expenses and, thus, will secure a loan for this purpose. Companies with high seasonality or cyclical sales may rely on working capital loans to help with periods of reduced business activity.
Manufacturers with this type of seasonality often require a working capital loan to pay wages and other operating expenses during the quiet period of the fourth quarter. The loan is usually repaid by the time the company hits its busy season and no longer needs the financing. Businesses can also pledge their inventory to secure funds with warehouse financing.
Important; Missed payments on a working capital loan may hurt the business owner’s credit score if the loan is tied to their personal credit.
Types of financing include a term loan, a business line of credit, or invoice financing, a form of short-term borrowing extended by a lender to its business customers based on unpaid invoices. Business credit cards, which allow you to earn rewards, can also provide access to working capital.
How We'll Help You
Working Capital Loans Made Affordable
Unlock the potential of your business with a Working Capital Loan at competitive interest rates lower than the market. Benefit from favourable loan structures and terms without paying us any service fees, giving you the opportunity to allocate more resources to your business priorities.
Working Capital Loans Delivered by the Experts
Leverage our expertise to secure the ideal Working Capital Term Loan for your business. Our experts will match you with the right lender, negotiate favourable rates, and ensure you secure the most advantageous Working Capital Term Loan deal available. Maximize your funding opportunities with our assistance.
Business Dreams Made Easy
Experience our seamless and convenient process with one application and quick approval for a Working Capital Loan for SMEs. Our dedicated team ensures your loan is approved within 3-7 days, empowering you to realize your business aspirations swiftly and efficiently.
Working Capital Loan Partners You Can Trust
At our core, we prioritize your business funding needs. With our extensive network of 30+ lender partners, we collaborate closely to secure the best Working Capital Loan for SMEs across India. Like 300,000+ other businessowners, use our trusted expertise to propel your small business growth and bring your dreams to life.
Your Other Secured Business Loan Options
Secured Term Business Loan
They are financing options that require collateral, offering you lower interest rates and longer repayment periods. Such term business loans give you access to funds that support growth, expansion, and your other operational needs.
Equipment / Machinery Loan
Machinery loans are specialized business loans designed to finance the purchase, upgrade, or repair of machinery and equipment. They provide businesses with the necessary funds to enhance productivity, streamline operations, and drive growth
Secured Overdraft
Overdraft facilities for small businesses grant flexible access to funds beyond the balance in a business bank account, up to a predetermined limit, aimed at meeting short-term financial needs.
Balance Transfer
Business loan balance transfers involve transferring existing loans from one lender to another for better terms, such as lower interest rates or an extended repayment period, resulting in cost savings for the business.
Loan Against Property
A Loan Against Property is a secured loan option where a immovable property is used as collateral to obtain funding. It offers lower interest rates, higher loan amounts, and loan tenures for a businesses’ financial needs.
| Who Can Apply | Collateral You Can Use |
|---|---|
|
Business Registration : Required |
Owned Commercial Property |
|
Business Vintage : Min 3 Years |
Owned Residential Property |
|
Age : Min 23 Yrs Old |
Industrial Property |
|
Annual Turnover : Min 20L |
Warehouse & Buildings |
|
|
Gold Jewellery & Machinery |
| Documents You'll Need |
|---|
|
Promoter Aadhaar Card |
|
Promoter PAN Card |
|
Current Residential Address Proof |
|
Residence and Office Ownership Proof |
|
Business Registration Proof |
|
Busines Bank Account Statements |
|
Income Tax Returns (ITR) and Computation of Income |
|
Audited Financials |
|
GSTR-3B |
|
Collateral Documents |
Other Loan Products Available
Get the perfect funding to achieve your dreams!
No more shopping around! We’ve curated 100+ loan products to meet your specific business needs so you can save time and directly apply for the loan right for you.
Unsecured Business Loan
Line Of Credit
Cash Credit
Invoice Discounting
Pros and Cons of Working Capital Loans
The immediate benefit of a working capital loan is that it’s easy to obtain and lets business owners efficiently cover any gaps in working capital expenditures. The other noticeable benefit is that it is a form of debt financing and does not require an equity transaction, meaning that a business owner maintains full control of their company, even if the financing need is dire.
Some working capital loans are unsecured. If this is the case, a company is not required to put down any collateral to secure the loan. However, only companies or business owners with a high credit rating are eligible for an unsecured loan. Businesses with little to no credit have to securitize the loan.
A collateralized working capital loan that needs asset collateral can be a drawback to the loan process. However, there are other potential drawbacks to this type of working capital loan. Interest rates are high in order to compensate the lending institution for risk. Furthermore, working capital loans are often tied to a business owner’s personal credit, and any missed payments or defaults may hurt their credit score.
FAQ (Frequently Asked Question)
A Working Capital Loan is a type of loan intended to finance a company’s everyday operations. These loans are typically used to cover short-term operational needs such as payroll, rent, or inventory purchases.
Any business, whether small, medium, or large, that requires funds to manage its daily operations can apply for a Working Capital Loan. The eligibility criteria may vary, so it’s best to check the specific requirements on our website or contact our customer service.
Interest rates for Working Capital Loans can vary based on several factors, including the borrower’s creditworthiness, the amount of the loan, and the loan tenure. For the most accurate rate, please contact our loan specialists or refer to our rate charts online.
The loan amount depends on your business needs, credit profile, and our assessment of your repayment capacity. Typically, businesses can borrow anywhere from a few thousand to several hundred thousand dollars.
Repayment periods for Working Capital Loans can range from a few months to a couple of years, depending on the loan amount and the terms agreed upon. Flexible repayment options are available to suit different business needs.
You can apply for a Working Capital Loan through our website by filling out the online application form. You may also visit our branch or contact our customer service for assistance with the application process.
Generally, you will need to provide financial statements, business registration documents, proof of business operations, and personal identification documents. A detailed list of required documents can be found on our application page.