Accelerate Success with Working Capital Finance!
Steady cash flow is the backbone of any successful business. Working Capital Finance provides the liquidity you need to manage daily operational expenses—like salaries, inventory, rent, and utilities—without disruption.
Whether you’re a growing startup or an established enterprise, our flexible financing solutions are tailored to meet your unique needs, helping you maintain smooth operations and focus on scaling your business.
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What is Working Capital Finance?
Working Capital Finance is a loan or credit facility provided to businesses to finance their short-term operational needs, such as purchasing inventory, managing payroll, paying suppliers, and covering other day-to-day expenses.
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Who can apply for Working Capital Finance?
Small and Medium Enterprises (SMEs), Large Corporations, Traders and Manufacturers, Service Providers, Proprietors, Partnerships, and Private Limited Companies can apply for Working Capital Finance. Eligibility depends on business vintage, turnover, financials, and creditworthiness.
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What are the types of Working Capital Finance available?
Common types include: Cash Credit (CC) / Overdraft (OD) Facility, Working Capital Term Loans, Packing Credit / Pre-Shipment Finance, Post-Shipment Finance, Invoice / Bill Discounting, Letter of Credit (LC), Bank Guarantee (BG).
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How is the credit limit determined?
The loan limit is typically based on: Sales Turnover, Inventory and Receivables Cycle, Business Cashflow, Past Repayment Track Record, Industry Norms. Banks often use a Drawing Power (DP) calculation based on current assets and liabilities.
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What is the tenure of Working Capital Finance?
Most Working Capital facilities are short-term, ranging from 3 months to 12 months, but may be renewed annually. Term loans can extend up to 3–5 years, depending on the arrangement.
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Is collateral required for Working Capital Finance?
It depends. Some facilities are secured by: Stock and Receivables, Property or Fixed Deposits, Personal or Corporate Guarantees. Others, like unsecured Working Capital Loans, are offered to financially strong borrowers but at higher interest rates.
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Can I use Working Capital funds for buying fixed assets?
No. Working capital loans are meant only for short-term operational needs, not for capital expenditures like purchasing machinery, vehicles, or property.
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Can the working capital limit be enhanced later?
Yes, businesses can request a limit enhancement based on increased turnover, improved financials, or seasonal requirements. Approval is subject to lender’s credit assessment.
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How quickly can I get the funds?
Once documents are submitted, processing typically takes 3 to 15 business days, depending on the lender, facility type, and borrower profile.
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Can startups or new businesses get Working Capital Finance?
Yes, but it's more challenging. Startups may need to: Show strong projected cash flows, offer collateral or third-party guarantees, avail government-backed schemes like CGTMSE or MUDRA.
