Working capital plays a vital role in ensuring business growth and steady revenues. Getting a working capital loan online is easy and ensures that your daily operations are running smoothly.
Here’s how you can get one from the convenience of your home or workplace:
- Search online for lenders who offer a working capital loan.
- See which lenders allow you to apply online.
- Compare the features and advantages of various working capital loans offered in the financial market. These features may be flexible repayment tenors, a line of credit facility and quick online approval.
- See the interest rates offered by various lenders.
- Choose a lender who charges nominal interest and has a loan with all the features that suit your requirement.
- Check your credit score and ensure it is high. This will help you get a loan quickly and at a low interest.
- Select a lender and then check if you meet the eligibility criteria. Usually, all you need to do is fit the customer profile and have a business vintage of 3 years.
- Next, see what documents are required for a working capital loan. Common documents required are financial statements and business proof.
- Apply online and await approval of your loan. Now all you need to do is submit the paperwork and your loan will be sanctioned.
What Is The Eligibility Needed For Working Capital Loans?
To get a working capital loan, you need to be an entity like a limited or private limited company or a partnership or proprietorship firm. Self-employed professionals and non-professionals can also get a working capital loan. You will also need a business vintage of 3 years to qualify for the loan.
Why Do You Need A Working Capital Loan?
- When there is a change in the volume of sales:
Fluctuations in your sales will directly affect your business income. If you have had a period of low sales, this may eat into your working capital. Sometimes your clients too may not pay you on time. This is when you can use a working capital loan to help keep your business functioning smoothly.
- When you don’t have enough cash flow to keep your business running smoothly:
Working capital loans are useful when you don’t have enough cash in store. Regardless of the source of your crisis, you can always depend on a working capital loan to pull you out of immediate inconvenience.
- When you need to stock up on inventory for seasonal sale:
Some businesses have high sales during a particular season. You can use a working capital loan to buy raw materials or hire more people to prepare for such times and ensure that your business generates high profits.
Advantages Of Working Capital Loans:
- Amounts up to Rs. 30 lakh:
You can get a working capital loan of up to Rs. 30 lakh, which can be used for efficient working capital management.
- Unsecured loan so you don’t need to pledge assets:
Working capitals loans by some lenders are unsecured so you don’t need to pledge any assets as security. This helps you stay safe and hastens your application too.
- Line of credit:
This facility gives you a credit line of a particular amount up to a specified tenor. You can borrow what you need for your working capital needs and pay interest only on the amount borrowed. You can borrow more when you need more funds. You can also prepay multiple times when you have excess funds, and re-avail the prepaid amount. This ensures that you have access to funds as and when you need them. Your EMIs under this facility are lower than under a term loan, since they only consist of the interest component. You can pay off the principal at the end of the tenor.
A working capital loan is crucial to help you meet daily business needs efficiently. Apply for Working Capital loan, which offers you a line of credit, quick online application, approval in 24 hours and amounts up to Rs. 30 lakh.