Working capital refers to the difference between a company’s current assets and current liabilities. It serves as a vital financial resource for short-term operations, such as procuring raw materials and managing operational expenses. By opting for a working capital loan in India, businesses can ensure a smooth and efficient flow of their day-to-day operations, contributing to overall financial stability and growth.
To adapt to the growing world one needs to manage every aspect of the business effectively. Many times it becomes difficult to manage finances. And thus, there comes the need for funds. Small or medium enterprises face these issues more frequently. So, a working capital loan for MSMEs helps in such a scenario.
Secured working capital up to 50 Cr
Competitive Interest Rates
Increases cash flow and sales
Quick processing with minimal documentation
Flexible Loan repayment (up to 60 Months)
Here are some of the necessary documents that are essential for obtaining a working capital loan in India:
It refers to the period taken to convert the company’s net current assets and liabilities into cash. So, the time gap between production and selling of goods into the market is high. The working capital cycle varies from industry to industry. A longer turnaround time to transform raw materials into cash corresponds to an increased need for working capital.
All these factors finally hamper the working cycle of the company. Hence, a working capital loan is the most suitable product in such a situation. There are 4 main elements in the WC cycle – Cash, Accounts Payable (creditors), Accounts Receivable (debtors), and Stock.
Gain insights on effective working capital cycle management.
Working capital loans provide short-term financing for day-to-day operations, not long-term assets or investments.
An overdraft facility is a loan from your bank that allows you to spend more than you have in your account. There is a limit, and you may be charged fees if you go over it.
A seller can get paid early by discounting a bill, which means selling it at a discount. Reasons for discounting include working capital needs or paying dues.
A cash credit facility enables customers to use the amount specified by the lender and pay interest only on the used amount. The amount cannot exceed the sanctioned amount.
Factoring is a financial instrument that allows a company to sell its unpaid invoices to a third party (factor) at a discount. This provides the company with instant cash and helps to manage working capital.
LC is a guarantee given by the bank to pay the seller for the buyer’s obligation, in case a buyer fails to make the payment. LC discounting takes away the risk and gives assurance to the seller of the funds.
A Bank Guarantee is issued by the lender to the debtor to cover its liability in case of default. In case of the failure of payment by the debtor, the bank will pay on his behalf.
At Terkar Capital, we are dedicated to providing tailored financial assistance to businesses in India to meet their short-term working capital needs. As a leading working capital financing company, we specialize in facilitating the smooth processing of working capital requirements. Our experienced team of experts will guide you in selecting the most suitable working capital product, ensuring prompt processing and competitive interest rates. We provide a comprehensive loan process, assisting you throughout the execution to make it seamless and hassle-free. Apply now at ease!!
Here’s the execution process to avail of working capital financing in India smoothly at Terkar Capital.
We cordially track the deadlines and make our quality tangible, while executing finance projects well ahead of time.
We comply with the highest professional confidentiality standards. All client information is discussed in strict confidentiality.
We find you the right lenders with similar terms and the lowest rate of interest.
We create a stable ownership structure for financiers by establishing a secure transaction process.
We are building our reputation through reliability, integrity, and honesty. We connect to our clients on personal grounds that include transparency and liability.
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