Overview
A working capital loan is a loan made to fund the day-to-day operations of a business. These loans are not used to purchase long-term assets or investments, but are used to provide working capital to meet the short-term operating needs of a company.Purpose
- Seasonal fluctuations in sales
- Cash cushion
- Unstable cash flow
- To seize the opportunity
- Inventory purchase finance
- Wages and salaries
- Unexpected problem
- Expense
Criteria’s for working capital loan/ Indicative Terms
- Type of firm / Company – Proprietorship, Partnership, LLP, Private & Public Ltd Co
- Number of years of operation in business & its activity
- Sound financials
- Annual turnover
- Operating cycle
Documents Required
Basic Documents Required (General for all categories)
Documents | Self-Proprietorship | Public and Private Limited Companies | Partnerships |
| Audit report and audit Financials for the last three years. | Yes | Yes | Yes |
| Income tax return along with computation of income for last three years. | Yes | Yes | Yes |
| CMA report | Yes | Yes | Yes |
| Latest sanction letter and Loan statement (if any). | Yes | Yes | Yes |
| Previous Six months Bank Statements | Yes | Yes | Yes |
| Details of all the present Directors / Partners on company letterhead. | Yes | Yes | Yes |
| Partnership Deed/LLP Agreement | Yes |