working capital loan

A firm invests a part of its permanent capital in fixed assets and keeps a part of it for working capital, i.e., for meeting the day to day requirements. capital is defined as the excess of current assets over current liabilities. Working capital to a company is like the blood to the human body. It is the most vital ingredient of business. We will hardly find a firm which does not require any amount of working capital for its normal operations.

The requirement of working capital varies from firm to firm depending upon the nature of the business, production policy, market conditions, seasonality of operations, conditions of supply etc.

Working capital loan is a type of advance that helps a business fund it's day-to-day or short- term operations. These needs can include costs such as –

• Procurement of raw material

• Payment for overhead expenses like wages, electricity, rent and other utilities

• Financing blocked payments from debtors

• Paying suppliers in advance

• Maintaining a sufficient level of cash, etc.

In other words, working capital loans are simply borrowings that are used by a company to finance its daily operations.

When Do You Need a Working Capital Term Loan?

There can be several times when your business can need small business working capital financing:

Helps you manage sales fluctuations

Acts as a cash cushion

Prepares your business to take up a bulk order

Stabilises and boosts cash flow

Equips you to leverage business opportunities

Benefits of Working Capital Demand Loans

Working Capital loans can be availed easily with lesser formalities.

There is little or zero restriction on using a working capital loan. The lender only expects that it should be used to increase or revenue or maintain daily operations.

Eligibility Criteria & Documents Required

Availing a business loan from Indifi is simple. Applicants just need to fulfil the following eligibility criteria to avail the benefits of the loan-

Eligibility Criteria	Documents Required
The minimum operational history of 1 years	Business Registration Proof
Two years ITR for income more than10 lacs	KYC documents of the applicant and the organisation
VAT returns for the last 12 months.	Bank statement for the last six months
	Pan Card of the promoter
	Aadhaar Card of the promoter

Four simple steps to your unsecured working capital Loan In India

Submit Application: It just takes 60 seconds.

Upload Documents: Its Completely online process.

Get Sanctioned: Evaluation of Documents- Proper scrutiny of documents take place.

Disbursal: Once evaluated,the loan is disbursed.

Why Indifi Working Capital Finance is the right choice for you?

Quick & Simple- With minimum documentation and no collateral needed, the process becomes simpler than ever.

Multiple Lenders- Increased chances of loan approval because we have multiple lenders.

Best Fit- We offer a customized unsecured line of credit loan which are tailor-made as per the business sector and needs.

Flexible & Transparent- Choice of loan tenure & repayment modes are chosen by the customer, hence making the process flexible with no hidden charges.

Superfast processing- We process all loan applications within 24 hours on an average.

Indifi, with its innovative online lending platform, provides quick and hassle-free business loans without security to bridge the financial needs of your business. Indifi provides loans customised to your requirements with minimal documentation and eligibility criteria.

The process of applying for a business loan with Indifi is straightforward and transparent. A business owner just needs to fill his primary business and KYC details, and Indifi uses its advanced algorithms to procure relevant data from other sources, draw insights, and judge the creditworthiness of the business along with its current and past performance.

What are the Types of business Working Capital Loans?

There are various sources of business working capital finance that lenders offer. As per your business type and needs, you can choose from the following types of working capital finance:

Types Of Working Capital	Definition
Cash Credit (CC Facility)	Cash credit is regarded as the most usable form of Working Capital Financing; it is provided by the bank wherein a borrower is approved a specific amount of cash to use for business payments
Trade Credit	When a good is sold on credit, Bills discounting can be used. It is an arrangement wherein the seller of goods recovers an amount of invoice from the bank. Banks generally charge a fee or commission for the service.
Bank Guarantees	Bank Guarantee is given by lending institutions to decrease the risk of loss to the other party due to non-performance of the agreed undertaking. In other words, the bank for some commission or security will cover the debt, if the debtors fail to settle it.
Invoice Factoring	Invoice Factoring is a financial transaction and a type of debtor finance. In an invoice factoring, a business sells its accounts receivable (invoice) to a third party (called a factor) at a discount. The element provides financing by purchasing the bills and additionally collects the amount from the debtors.
Letter Of Credit	A letter of credit, or "credit letter" is a letter from a bank that guarantees the buyer's full and timely payment to the sellers. If the buyer defaults, the bank covers the amount. Banks provide this service in return for a fee or security.

Business Working Capital Loan FAQS

Is this Working Capital loan for you?

If you are a business owner and need money to grow your business then you can opt for a working capital term loan. Indifi capital loans are flexible and customized to your needs going up to 1 Crores.

Do I need any collateral for the Working capital loan?

We offer unsecured business loan, and no collateral is needed as security.

How can I apply for online Working Capital Loan?

Applying for working capital loan is quite easy. To apply online with Indifi click here.

What are the various business and industries that Indifi offers Working Capital Loan solutions for?

Indifi offers loan solutions for manufacturer, traders, service providers and retailers. We have custom loans for travel agents, hotels, restaurants, retailers and e-commerce businesses.

Can I repay you anytime?

Save on interest by repaying the loan whenever you have money. You can also part pay and reduce the loan period.

What happens when I delay my payments?

Customers are periodically informed to help repay timely. In cases of missed payments, a quick repayment along with a notification informing Indifi is expected. In case of unexpected events, case by case decisions are made to help the customer.