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Financial Services
Working Capital Finance

In many cases, companies are unable to generate the revenue needed to meet expenses incurred by day-to-day business operations. In such circumstances, companies may apply for a working capital loan. Unlike most other business loans that allow companies to acquire capital in order to expand, a working capital loan covers only expenses incurred by existing capital and human resources (e.g. utilities, rents, payroll, etc.). Working capital loans are generally granted only to companies with a high credit rating, and are only meant to be used until a company can generate enough revenue to cover its own expenses.

There are many types of working capital finance. It is normally in the form of Fund Based Finance and Non Fund Based Finance depending upon the requirement of Industry, Trade and Service Sector. Funded facilities include cash credit, demand loan and bill discounting. Cash Credit facility is given against stock, so if any company is require to hold inventory in volume and for a long period, Cash Credit facility helps in keeping the inventory position. Generally bank finance 75% of the inventory value held by company on a particular day. 

Types of Working Capital Loans

Cash Credit
Bank Overdraft Facility or Credit Line
Over Draft Against Stock
Over Draft Against Receivables
Over Draft Against Property
Post Shipment Finance
Packing Credit
Trade Creditor
Factoring or Advances

Bank offers working capital finance by way of cash credit, overdraft or working capital loans suitably structured to client needs and risk profile

Further these loans attract collateral security depending upon size and profile of the company. Some times it may require minimum of 30% and maximum 100% collateral as well depending upon the promoters, company’s profile and the industry.

Rate of Interest is subject to Company’s financial and managerial strength, Security offered and other factors.

The experience of our company and the astute team ensure that the clients get the best Working Capital Loans on favorable terms.

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