Working Capital Loans are designed to bridge financial gaps caused by timing differences in receivables and payables, ensuring businesses maintain smooth operations and liquidity. Working Capital is granted both secured and unsecured in Nature. working capital loans are used to help companies bridge financial gaps, such as the time delay between the collection of accounts receivable and the need to repay debt or accounts payable. Working Capital loan can be granted to any of the constitution like Proprietorship, Partnership firm, Private limited or Public ltd company. Generally, working Capital loan granted based on company’s Annual Turnover. The ratio is20%-25% but mostly it depends upon various banks internal policy.
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