posted on 2019-07-29 09:59:58 by Admin

Every Business organization needs a healthy working capital to cover its day to day operations like wages, paying vendors, purchases etc. It is not used for capital expenditure or for making long term investments for the business.

Working capital essentially is a difference between the Current Assets and Current Liabilities. Working Capital is the money available to operate the immediate and short term needs of the company. Although you may have a successful business, access to working capital for further growth and expansion is often a stumbling block at some point. All business look for some kind of working capital loans and there are numerous banks and NBFC's which are helping these businesses in their needs.

Key Features of Working Capital Loans

• Working capital Loans are used for short term financing. The maximum tenor is usually 12 months.
• The interest rate is usually between 12-16% depending on the banks and are linked to floating interest rates of the banks
• These loans are secured loans and usually require collateral in the form of stock or book debts or residential property in some cases.
• Some of the types of working capital loans includes overdraft loan, cash credit loans, credit score, bank guarantees, etc.
• The eligibility for a working capital loan requires the business to have been operational for a certain number of years and have a certain specified income criterion.

Working capital loans are an integral part of running any small business. It helps them keep afloat and cover expenses at all times.
For your working capital needs, click here to apply online for working capital or speak to a LoanAdda Expert today at 0120-4545956