A working capital loan allows you to meet fund requirements for the regular operations of your business. These types of loans may be used for the following purposes
Purchasing raw materials
Making advance payments to suppliers
Funding accounts receivables if payments from debtors are delayed
Meeting overhead expenses such as salaries, utility bills, and rent
Small and medium enterprises (SMEs) often have fund limitations and a working capital loan is useful to meet these needs. Some companies have a seasonal or cyclical business and have no stability in sales during the entire year may opt to avail working capital loans to meet their regular operational expenses.
Cyclical businesses manufacture their products during the off-season. The majority of their revenues come through sales during the peak season. Therefore, during the remaining year, cyclical businesses require funds to ensure the smooth operations of their companies.
Manages sales fluctuations
Offers flexibility to take advantage of potential business opportunity
Provides a cash cushion
Helps to stabilize and boost cash flows
Offers the funds needed to fulfill bulk orders
Business Loan for Working Capital have several features as follows:
Higher loan amount of up to INR 30 lakh is available to ensure companies do not face any problems in running their operations due to lack of funds
Flexibility in drawdown and repayment provides a smart and convenient way to manage business’ cash flows; interest is levied only on the amount used and this helps to reduce the Equated Monthly Installment by up to 45%
Lenders offer competitive and affordable business loan interest rates ensuring you do not have any difficulty in servicing the EMI in a timely manner
The eligibility criteria are easy to meet and documents required while applying for the loan are also minimal, which ensures a quick, smooth, and easy approval and disbursal process
Several lenders provide pre-approved offers that simplify the procedure. Additionally, pre-approval further reduces the time when borrowers actually need to avail the loan. To check the eligibility and determine the estimated EMI on the borrowed amount of unsecured business loan for working capital, borrowers may use an online business loan calculator. Individuals simply need to input the amount, tenure, and the interest rate to determine the estimated EMI.
Check your eligibility here and get a pre-approved working capital loan today.