How a Working Capital Loan Helps Boost Your Business
Efficient working capital management allows your business the chance to grow by capitalizing on possible opportunities.
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Efficient working capital management allows your business the chance to grow by capitalizing on possible opportunities. A Working Capital Loan helps you take care of all monetary needs required for growth.
All businesses, regardless of whether they are growing or well-established, need to manage their working capital efficiently to boost their growth. There are times when your business may need to increase its working capital to meet a sudden increase in market demands, or to scale up operations across the board.
At such times, having a ready and reliable source of finance is important, so that your business gets the funds it needs, right when it needs them. A working capital loan that comes with a high loan limit and quick online approval is the answer, and here’s why:
How to use a Working Capital Loan to Boost Your Business:
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To Clear Outstanding DebtYour business may accumulate debt over time until it reaches an amount that is difficult to repay using existing funds. You can regain financial stability by taking a working capital loan that lets you repay the amount in affordable EMIs.
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To Market Your BusinessYour business’s growth is directly related to its visibility. When you undertake marketing, advertising, and lead generation activities, you provide your enterprise with significant potential for growth. A working capital loan facilitates this process by pumping in the required funds, without affecting your finances otherwise.
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To Remodel or Expand Business PremisesWithout proper infrastructure, the execution of day-to-day tasks becomes difficult. By remodelling your business premises or expanding them to accommodate more personnel and equipment, you can cater to both your customers and employees better. Taking a working capital loan can help you move to a bigger office or add an extension to the existing space.
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To Buy Equipment and InventoryBuying new equipment is a costly endeavour, but it is a necessary expense if you wish to provide top-quality products and services to your customers. Plus, keeping your inventory fully stocked, especially during holidays and festivals, is a good idea. A working capital loan helps you meet these seasonal expenses with ease.
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To Take Care of Unexpected ExpensesBusiness involves risks. Sometimes, these risks lead to unplanned expenses. There is always the possibility of a rapid spike in business, which will also require more expenditure. For such unexpected payments, you can rely on a working capital loan that comes with quick approval and an online application process.
Benefits of a Working Capital Loan:
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It Provides Fast CashOne of the best features of a working capital loan is the speed with which it is processed by the lender. From application and approval to the disbursal of the loan amount, working capital loans for small scale industries are ideal when you require finances in a hurry.
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It Doesn’t Need CollateralA working capital loan is unsecured and does not require you to pledge any collateral or assets against it. This way, your assets remain with you, and may be used for other pressing business needs.
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It Offers You A Line Of Credit Facility
A line of credit allows you greater control over your finances because you can withdraw as many times from the credit line as required, within the tenor and credit limit. You only have to pay interest on the actual money utilized. Your monthly EMIs consist of just the interest, and you can repay the principal at the end of the tenor.
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It Charges Nominal Interest RatesSince a working capital loan is custom-made for small and medium businesses, it charges a competitive interest rate to facilitate faster repayment.
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First Published: Sep 14 2017 | 12:45 PM IST
