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Working Capital Loan

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For any business, there is nothing more frustrating than a project coming to a stop due to a shortage of capital.  Working capital is a measure of a firm’s liquidity required to meet the operating debt. Inadequate working capital indicates red flags in a company’s operations, i.e., more money is tied up in current liabilities than assets. If a business runs out of money, it cannot cater to existing customers and may fail to acquire…

Opting for a secured business loan puts assets at risk if the repayment is not made on time. Hence, most entrepreneurs choose unsecured business loans over secured business loans. GOI and financial institutions in India have rolled out several financing schemes to that end.  A business loan without security is ideal for MSMEs with fewer assets to pledge. Almost all Indian financial institutions offer unsecured business loans to businesses. Thus, a borrower remains under no obligation to pledge collaterals…

The availability of tailor-made financing options for businesses has changed the way companies structure their investments. It has presented them with an avenue to source necessary funding without worrying about collateral or facing dragged-out processes. Moreover, the lack of usage restrictions has allowed entrepreneurs to manage any expense with ease. Owing to its customer-friendly benefits, the business loan segment has registered a growth of 13.8% from March to September 2020. The outstanding balance in this…