Need help call : +91-8130700088
Contact Email : info@ourloanguru.com
Need help call : +91-8130700088
Contact Email : info@ourloanguru.com
Adequate working capital is critical for Small and Medium enterprises to operate seamlessly and achieve their growth. But there are times when the absence of working capital causes undue stress and pressure upon SMEs. Under these circumstances, at OurLoanGuru, our well experienced experts are fully capable to provide perfect and quick solution for their working capital needs
9.50% Interest Rate
Working Capital Loan can be defined as a loan availed by the firms for covering their daily operational expenses 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 and generate capital.
As mentioned above, the working capital loans are made for paying the salaries and other daily expenses, however there can be some different reasons for borrowing money from a lender i.e. Seasonal sales fluctuations, Cash Cushion, Non-steady Cash flow, Capitalising on opportunity etc..
Eligibility of Working Capital Loan
If you are looking to apply for a working capital loan, you need to represent a business that has been in operation for a number of years or your business should have a certain annual turnover. However, the requirements depend on the type of business you own.
Only Business entities like Sole Proprietorship Firms, Partnership Firms, Private and Public Limited companies are eligible for a working capital loan:
The following are the Basic documents required for Working Capital Loan.
The account receivable loans are based on the confirmed sales order value of a business. It is perfect for a company who require funding for filling a sales order. However, you need to be reputable and have a good credit history for getting this type of working capital loan.
. The Factoring working capital loan works in a similar way as the account receivable loans, the only dissimilarity is that the value of the loan is based on the future credit card receipts. This type of loan is perfect for the businesses who accept the credit card payments.
A short-term loan comes with a fixed interest rate for a maximum term of 12 months. The business’s good credit history and relationship with the lender can allow them to get a short-term loan without securing any collateral
This type of loan is perfect for a new business that does not have a good credit history. Equity funding is generally obtained from personal resources.