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Starting a small business isn’t an easy feat, but with a Working Capital Loan, it can be.
Working capital loans are one of the most popular loan types offered by banks and alternative lenders. Working capital loans are often used to fund everyday business expenses like payroll, rent, and operational costs and manage cash flow gaps during a business’s slow season.
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A Wide Range of Business Loan To Choose From
| Bank/NBFC Name | CIBIL | Rate Of Interest | Processing Fee | Loan Amount | Apply for Loan |
|---|---|---|---|---|---|
| ICICI BUSINESS LOAN OVERDRAFT | 700+ | 15% onwards (Fixed) | 1%-2% | Upto 50 Lac | Apply Now |
| DCB Working Capital Loan | 700+ | 10% on wards (Fixed) | 0.50% to 1% | Upto 15 Cr | Apply Now |
| RBL Bank Working Capital Loan | 700+ | 9.5% on wards (Fixed) | 0.50% to 1% | Upto 50 Cr | Apply Now |
| IndusInd Bank Working Capital Loan | 700+ | 9.5% on wards (Fixed) | 0.50% to 1% | Upto 30 Cr | Apply Now |
| Utkarsh Bank Working Capital Loan | 700+ | 10% on wards (Fixed) | 0.50% to 1% | Upto 15 Cr | Apply Now |
FAQs
Working capital is the capital or funds that a company uses to manage its day-to-day operational expenses and short-term financial obligations. It represents the difference between a company’s current assets and current liabilities.
Working capital is vital because it ensures a company can meet its short-term financial obligations, such as paying suppliers, covering operational expenses, and managing inventory. Sufficient working capital is essential for smooth business operations.
Working capital is calculated by subtracting a company’s current liabilities (e.g., accounts payable, short-term debt) from its current assets (e.g., cash, accounts receivable, inventory). The formula is: Working Capital = Current Assets – Current Liabilities.
The ideal level of working capital can vary depending on the industry, business size, and specific circumstances. However, a positive working capital (where current assets exceed current liabilities) is generally considered healthy.
Insufficient working capital can lead to operational difficulties, including an inability to pay suppliers on time, meet payroll, or invest in growth opportunities. It may also harm a company’s creditworthiness.
