6 Common Sources of Working Capital for Your Business

Consistent cash inflows help businesses take care of their day-to-day operations.

The loan can be used for different purposes, including paying the storage area rent, buying raw materials, paying staff wages, etc., and has a tenure of up to 12 months.

The collateral to be submitted can be in the form of raw materials, stock-in-trade, fixed assets, equipment, finished goods, etc.

In addition, cash credit allows a company to withdraw money as many times but up to its withdrawal limit.An attractive feature of a cash credit loan is that the interest rate is charged only on the amount withdrawn, not on the whole borrowed limit.

Company A takes a cash credit loan to cover its expenses while waiting for its finished goods inventory to turn into cash.Spotlight Features of Working Capital loan:Cash credit is granted against collateral or security.It is given to meet the daily working requirements of a business.It can be repaid in the form of monthly, quarterly, or half-yearly repayments.Individual applicants can avail cash credit against their fixed deposits and save on interest.Interest rate pay off on cash credit loan is tax-deductibleMoney can be withdrawn any number of times from the sanctioned limit.

Moreover, the bank has the right to recall the funds at any moment, and the borrower is expected to repay them immediately.

Financeseva is the best Loan Provider, CA and Banker Venture.

We provide you with various types of loans and help you with managing your finances when you are in need.

It provides you with the financial services that you have been looking at a suitable rate of interest over the time period.It provides you with many loans like Foreign Currency Term Loan that can be paid in stipulated installments or bullet payment as per the terms and conditions.

This loan helps you to manage the finances for importing Raw Materials, Capital Goods, Pre and Post Shipment advances to the exporters and purchasing Indigenous Machinery.

Foreign Currency Term Loans (FCTL) can be disbursed in four currencies viz.

US$, Sterling, Euro and Japanese Yen with a maturity period of 6 months to 7 years.Financeseva offers you letter of credit purchase bill discounting which in short can be referred to LC Purchase Bill Discounting.

Businesses who require immediate working capital and can repay the loan promptly are given short-term loans.

If your company need short-term operational cash, you should contact a bank or lending institution's short-term loan expert.

To help you obtain the proper company finance, contact a loan service provider like Finnacle.website- https://www.finnaclesolutions.sg/short-term-loans

Small Business Loans for small businesses guaranteed by the Business Administrations.

With our multiple SBL funding programs, get a minimum loan amount of $5000.00 - $5M provided through an SSC private lender.

The three main SBL loan programs let you borrow money for nearly any business purpose—including working capital, purchasing inventory or equipment, refinancing other debts, or buying real estate—through these SBL-guaranteed loans.

Long term of up to 5 - 25 years with an interest rate of 2.5%.

Advantages:Lowest Down PaymentsLongest Payment Terms Reasonable Interest RatesSuitable for a wide range of business purposes and startups.

That said, our SBL loans are indeed fit for growing your business and refinancing your other debt at the lowest available rates.

LivFin is non-banking financial company and offers an easy invoice finance for your business that helps you grow and prosper.

Our invoice Finance is one stop solution for addressing specific situations at your business and bridge the current gap in the market with innovative and flexible features.

In market terms, invoice finance is also known as invoice discounting and offers many benefits to small business owners of India.

Invoice Finance works differently as it offers more money into the hands of business owners to raise funds and does not require long term committed contracts.

At Livfin, there is a great chance to avail invoice finance for streamlining your working capital flow.Resource: https://livfin.com/blog/what-is-invoice-financing-and-benefits/

Tata Capital provides a Personal Loan of up to Rs.

25 lakhs that can be used to cover a variety of personal expenses.

The interest rate on a Tata Capital personal loan starts at 10.99%.

The interest rate that a borrower will be charged is determined by several factors, including credit score, customer category, loan size, and location.

In the financial world, there is an old saying, ‘the color of the money is the same; however, its usage differs.’Money can be used for different purposes by an organization.

For instance, a business can use funds for its regular operations, as well as for expansion.

Depending upon the objective and the usage of money, a company can borrow or invest.Read more at how to manage working capital 

The MSME factor is picking up pace.Factoring is a very dynamic process of debt financing which businesses all around the world depend on to operate without capital strings.It is also closely related (and yet different) to another practice called "invoice discounting”.Read about both these concepts and about the new Factoring legislation passed in the Parliament recently by clicking on the link below.https://transfin.in/the-factoring-regulation-amendment-bill-2021-an-explainer