Loans can be utilised for various things in today’s world. It can be used for funding a start-up to buying appliances for your newly purchased house.
Let us talk about the different types of loans available in the market and their specific characteristics that make these loans useful to the customers.
Working capital loan is one taken to overcome short-term shortage of cash. This is generally used to when cash in the business is not enough to take care of the day-to-day operations of the company. Working capital loan is a great way to overcome the seasonal shortfall of cash, irregular cash flow or to cater to a sudden spurt in business. A manufacturer, service provider, retailer/wholesaler or a trader engaged in imports / exports can apply for working capital loans.