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How to Use Working Capital Loans to Strengthen Your Business

By Finserv MARKETS - Mar 31,2020
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How to use Working Capital Loan

A working capital loan is a specific type of borrowing, contrasted with general small business loans, factoring or credit cards. There are numerous benefits of choosing these funding options. For example, a loan in this category gets approved very quickly in many circumstances. A working capital loan doesn’t require an extensive business plan or a complicated application process. Moreover, lenders favor a business owner with a detailed plan about how the money will be put to use. Let’s take a look at some of the common ways the borrowed capital can be used to strengthen your business.

  • Quick financing for your business

This loan can get you quick financing for your business operations. In cases where the payment gets delayed you can immediately fulfill your cash needs by applying for a working capital loan. With quick loan approval and speedy disbursal of this loan you can receive the loan amount directly in your bank account. This prevents you from experiencing the hassle of standing in long queues or going through a slow application process.

Personal Loan

  • Affordable loan repayment

From purchasing equipment, machinery, furniture to expanding your business, there are a host of expenses that can be undertaken. But in case of a fire, loss or theft you can make use of the working capital loans. They feature flexible tenor, simple prepayment options, and nominal interest that helps in making repayment quite affordable. So, you can apply for this loan without worrying about your finances.

  • Does not require collateral

A collateral acts as a security for a loan. Many lenders provide both unsecured and secured loans. Your business’ assets are key requirements of your business operations. So, you want to ensure that these assets are risk-free. Usually, this would be a good reason to stay away from taking a loan to finance your business needs. Like other loans, you are not required to provide security on a working capital loan. This loan is collateral-free, so your assets are completely protected which makes this loan an ideal option for your business.

  • Offers flexibility

While running a business you require a good amount of financing. For example, during festivals, you need more raw materials and products, and sales staff. While these needs may vary, you can simply take a single loan to pay for all of them. A working capital loan gives you complete freedom over how you can use the loan amount. With a Flexi Loan, you can get the maximum amount of money you qualify for also allowing you to borrow funds based on your needs.

You are only required to pay interest on the amount you use, which makes this loan even more affordable. Also, to ensure that you can get the most of your loan amount, you have the option of repaying the principal at the end of the loan tenor.

  • Easy to qualify and avail a loan

A working capital loan is quite easy to qualify for; the loan features and eligibility criteria are quite simple. The loan process requires basic documents that are quite hassle-free. Usually, all you need to qualify for this loan is to have a business vintage of at least 3 years and submit your KYC documents like ID proof and proof of address. Since this loan can be applied online, the application process is easy and doesn’t take up too much of your time either.

At Finserv MARKETS, you can avail customized business loans at low-interest rates. These loans can give your business the much-needed boost by fulfilling all your financial requirements. You also get the convenience of accessing your online business loan statement anytime and anywhere. The business loans available on Finserv MARKETS are collateral-free, which means you do not have to put your personal or business assets on the line to get the finance for your business.

Offering business loans for undertaking various business operations, whether it is the expansion of your business, acquisition of other companies, buying high-value machinery or equipment, etc, with a business loan you can finance all such expenses with ease. You can simply apply for a business loan online and get pre-approved offers for an instant loan without security from Finserv MARKETS.

Know more about the various types of working capital

“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522