Best Working Capital Loans for SME & MSME in India
Every business aims to grow and expand its clientele, as well as output. However, small and medium sized enterprises often feel limited by their working capital – which means they may not enough cash at hand to grab a new opportunity or meet a sudden demand.
Don’t let your cashflow limit your reach!
There are many lenders in the market who are willing to finance promising start-ups and established businesses with working capital loans to help them meet sudden infrastructural or inventory-based demands or get over seasonal lulls without any lengthy paperwork.
At Loandeals, we help you avail working capital finance for up to INR 50.00 crores at best rates across the industry . We bring you competitive deals from the top banks and Financial Institutions in India, and do all the legwork on your behalf to ensure you receive the cash you need within 10 business days, without losing focus from your work for even a day!
Online Application | Quick Disbursal | Competitive Rates | Minimal Paperwork
What is Working Capital Finance
Businesses require liquid funds to keep their business running smoothly. However, gaps in liquidity or unforeseen expenditure can spoil the cash flow balance of your company, forcing you to scale down your operations or bring some processes to a halt. A working capital loan can help your business fund day-to-day processes or operations, such as:
- Maintaining a healthy cash flow
- Pay for overhead costs, such as rent, salaries, electricity and water bills, etc.
- Procure raw material
- Pay suppliers before the completion of the order for clients
- Maintain inventory
At Loandeals, we provide you with working capital loans that help you cover the additional expenses without any strain on your regular cash flow. There are several tailormade financing options that you can avail by availing our services & find one that matches your needs.
Compare loan deals online or drop us a message on WhatsApp +91-8425804441 so we could guide you to the right option for your situation.
Benefits of Working Capital Loans:
Easy online application – As a business owner, we understand that you are hard-pressed for time. That is why we made it easier for you to get working capital finance by creating an online application that is quick and easy to fill and requires minimal documentation for approval.
Zero collateral – Don’t put your personal assets on the line when you can get a short-term loan to keep your business running smoothly. Most lenders do not take any collateral against working finance loans.
Short tenure – Short-term cash requirements must not take years to be repaid. Working capital loans are offered for a period of 9 to 12 months, meaning you can pay off the amount as soon as your business starts ticking, without any long-term debt.
Quick disbursal – Your online application is assessed by skilled professionals to ensure speedy approval and disbursal of funds in your account within three business days.
Flexible repayments – Choose flexible repayment options to meet the demands of your business and maintain a healthy cash flow.
If you are looking for urgent funds to meet your business requirements, speak to an expert on WhatsApp +91-8425804441 to find the right financial product for your needs.
Types of working Capital Loans in India
Several major banks and NBFCs offer working capital finance in India, such as HDFC bank limited, ICICI bank Limited, Bank of Baroda, Kotak Mahindra Bank Limited, Yes Bank limited, Indusind Bank Limited and Standard Chartered Bank Limited.
Different types of working capital loans are available with each lender, and it is vital to choose a product that matches your requirement to get the max out of your loan.
Here are some of the common types of working capital loans in India:
Working Capital Loans
Working capital loans are often used by small businesses to maintain their daily cash flow. These are short term loans and can be used for paying salaries, rentals, and other business-associated expenses. At Loandeals, you can compare working capital loans from top Indian banks and NBFCs and avail a working capital facility of up to INR 100 lacs within 10 working business days. Drop us a message on WhatsApp +91-8425804441 to know more.
Bank Overdrafts are quite popular with both small and large scale businesses. Here, a bank approves cash facilities up to a certain amount that the borrower can use for making business payments. The borrower can, therefore, withdraw as much money as needed, up to the specified limit, whenever he or she wants to use it. The best part is that interest is only charged on the amount that is drawn down, helping borrowers save money in interest payments.
Bill discounting or purchase bills can be defined as a discount that a bank takes from a seller to release funds before the end of the credit period. Purchase bills are often used by small businesses to meet their working capital requirements. Here, a seller goes to the bank with a bill for a transaction, and the bank releases the money to the seller after deducting the interest that would accumulate during the credit period or the period when the buyer will make good the payment. At the end of this period, the bank presents the bill to the buyer and collects the full amount instead of the seller.
Accounts Receivable Loans
In this type of loan, the bank takes into consideration the accounts receivable or the confirmed sales order value of your company before lending money to you. This type of loan is perfect if your business lacks adequate funds to fulfil a sales order or contract. However, to be eligible, your business must have been in existence for a few years with an unblemished record of paying off your debts on time.
Many banks also offer non-fund based working capital facilities in the form of bank guarantees and letters of credit. You can speak to us on WhatsApp +91-8425804441 to find the right financial product to meet your working capital needs.
Who Needs Working Capital Financing Loans?
Working capital loans in India are mostly used by SMEs and cyclic businesses that don’t have a stable cash flow throughout the year and need cash in hand to meet their day-to-day costs. With the option of working capital financing loans, it is possible to borrow money for a short tenure to tide over seasonal lulls or emergency working capital requirements. The paperwork required for working capital loans is minimal, and you can get the money in your account in less than three working days, once your application is approved.
To qualify, your business must meet the following criteria:
- It should be a Private Limited, Partnership, LLP or Proprietorship firm
- Should have been operational for at least one year
- Must have a minimum annual turnover of INR 100 lacs
You will also need the following documents to be eligible for a working capital loan in India:
- Certificate of business registration
- Your KYC documents
- Bank statements for the past 12 months
- IT returns for the past 3 years
- Acceptable Collateral Security to the bank
Yes, that’s all you need to apply for a working capital loan on Loandeals. In case you are looking for a more substantial sum of money (over 100 lacs), you can also apply for a loan against property, here. If you are confused about the right financing option for your business needs, get in touch with us to understand your options better.
What fee and charges are applicable on a working finance loan?
In addition to the interest rate on your loan, there is a processing fee of 2% applicable on the loan amount in addition to 18% GST.
What type of companies can apply for working finance capital loans?
Different banks may have different criteria. However, the following types of companies are generally eligible:
- Private limited company
- Partnership firm
- Sole proprietorship
It is recommended to check the specific requirements of lenders before applying to minimise the chances of rejection.
How long is the tenure for a working capital loan?
Working capital loans are short-term loans with a tenure of one year or lesser in most cases.
Do I need to visit a bank to get a working capital loan?
You can visit a bank branch to get a working capital financing loan or apply online with minimal documentation on websites such as Loandeals.