A Working Capital Loan is one that is availed of to fund the day-to-day operations of a business, ranging from payment of employees’ wages to covering accounts payable. Not all businesses see regular sales or revenue throughout the year, and sometimes the need for capital to keep the operations going may arise. This is usually the case with companies that have seasonal business cycles or cyclical sales, while some other may require such a loan during festive seasons or periods of reduced business activity. Such loans may be secured or unsecured, that is, you may or may not be required to pledge a collateral to avail of the loan, depending on the loan amount and the business’ financial health. A company’s working capital is also a reflection of its financial health and liquidity position.

Helping Business Owners.

A Working Capital Loan is not meant to fund your business expansion or asset purchase plans; it is a type of business loan that is used to meet your short-term financial obligations and operational requirements. The short-term liabilities could range from payment of monthly overheads to day-to-day expenses, purchase of raw materials, and inventory management. These are only a few examples of a business's short-term operational requisites. With the aid of a Working Capital Loan, your short-term necessities are taken care of, and you have more space to plan and focus on your long-term goals.