All You Need to Know About the Benefits of a Working Capital Loan

When you have a business it is imperative for you to have sufficient working capital so that you can carry out daily operations without any hassle. Ensuring that you have this finance will help your business function smoothly, without any interruptions. However, there can be several instances when your business may not have the working capital amount that you require. For example, such a situation could arise when you have not been able to recover revenue, or when a chunk of your finances are blocked in unsold inventory. No matter what industry your business operates in, you will need funds to manage your working capital. For example, if you have a trading business you will have various working capital expenses like managing the inventory of goods, paying suppliers for imported raw materials and even financing the payment of wages for your employees. If you don’t have the funds, it is important for you to know how to manage working capital for your trading business smartly. Borrowing a working capital loan is one way of doing this. This is a unique financing option that has various features that help you meet your business’ working capital needs. So, take an in-depth look at everything that you need to know about a working capital loan and its features. It Offers you a High Loan Amount for Varying Needs Business expenses can quite often run into lakhs of rupees depending on the size of your establishment. For instance, you may need to expand your firm’s production capabilities, or upgrade the software that you use. For such requirements, a working capital loan offers you the option to borrow up to Rs.30 lakh to address the situation. One lender that offers you a high loan sanction at a low rate of interest with flexible repayment terms is Bajaj Finserv. Their Working Capital Loan also comes with minimal eligibility and documentation requirements. To apply, you only have to submit 2 documents. You can also avail pre-approved offers from Bajaj Finserv that help you save considerable amount of time to get financing. Just enter your basic details and check out your pre-approved offer. It features 24-hour Approval for Instant Funding In cases where you want to reduce your working capital cycle to improve the liquidity and cash flow of your business, you may need to aggressively advertise your wares. This will ensure that you aren’t spending money on maintaining large quantities of unsold inventory. To meet such needs quickly and efficiently, a working capital loan features 24-hour approval. It Offers You a Flexi Loan Facility to Enhance Your Convenience This is a unique facility that lenders like Bajaj Finserv offer, to help you borrow money in parts, as and when you need it. You have to pay interest only on the amount that you use, and not the total sanction. Besides, repayment is easy as you can choose to pay interest-only EMIs, and then pay the principal at the end of the tenor. This facility can be of use when there are sudden changes in demand or if your business needs to meet contingencies and taking timely remedial action. It has Simple Eligibility Criteria that are Easy to Qualify: Applying for a working capital loan is extremely simple thanks to the easy eligibility criteria. To apply for this loan all you need to do is ensure that you fall in the age bracket of 25–55 years and have a business vintage of at least 3 years. Besides, your business must have filed income tax returns for the past year, and have its previous year’s turnover audited by a chartered accountant. It Enables You to Manage Your Loan Online This loan features an online management facility. So, you can view details like the outstanding balance, principal statements, interest statements, etc. online and at your convenience. Simply log in to the secure customer portal using your user ID and password to do so. It doesn’t Require You to Pledge Collateral A working capital loan is completely collateral-free. So, when you need funds, you don’t have to worry about putting valuable assets at stake. Besides, this results in lesser paperwork, thereby expediting the approval and disbursal process. These are various benefits you can enjoy when you apply for a working capital loan. But, before you do, ensure that you select a loan that meets your requirements perfectly. Also, be sure to use an EMI calculator to determine the affordability of the loan before you apply.