Financial urgency or monetary requirements can occur at any point of time for companies. To overcome this situation they generally opt for working capital loans. Micro, small & medium enterprises (MSMEs) as well as large enterprise, need financial funding at one point of time or another to cover the expenses of their daily business operations. It also helps in meet out delayed payments from customers as well as slowing down of demand in market.

Working Capital Loan can be defined as a loan availed by the firms for covering their daily operational expenses. These loans are the excellent way for the businesses to become more focused on their growth and generate capital. The working capital loans in India have become popular among the business owners for tackling with their financial needs.

This form of financing is a good source of capital for small and medium enterprises(SMEs) and is especially suitable for seasonal or cyclical businesses that don’t have sustained or stable sales all year round and need liquidity (cash in hand) to meet their everyday operating costs.

Working capital is available for national operation as well as international (import – export) operations. Working capital can be obtained is in Indian Rupees as well as Foreign currencies.

Working capital may be fund based (i.e. Cash Credit/Over Draft Limit) or Non Fund Based (like Letter of Credit / Bank Guarantee etc.)