Need Additional Working Capital? Try An Instant business loan

Icy Tales Team
7 Min Read

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Every business needs working capital for its day-to-operations. It also shows the company’s short-term financial health and efficiency. Occasionally, almost every business faces a shortfall, especially while planning for growth by taking up a bigger contract or entering a new market. That is when they opt to apply for a business loan online. 

These are unsecured business loans that small and large businesses borrow to meet their growing business urgent needs. Several NBFCs offer these loans at competitive interest rates to entrepreneurs, partnership firms, closely-held companies, store owners, and independent contractors. Let’s examine details about working capital loans and how they simplify a small entrepreneur’s life.

How Does a Working Capital Loan Help a Business?

A working capital loan raises funding for a company without changing its current ownership structure. It helps a business by providing numerous advantages to the entrepreneurs, including the following:

    • Grow a Business: If entrepreneurs are ready to expand their business but lack the required funds, an online business loan provider can help them. In some situations, they provide large loan amounts that open up gates without stressing how to pay for the growth-related costs.
    • Flexibility: Entrepreneurs can use business loans to achieve their trade’s objectives. They can apply for a loan to meet their cash needs. Although long-term loans have small EMIs that borrowers can easily fit into their monthly budget, they increase the interest outgo over the loan term. Business owners can choose a loan tenure depending on how much they can repay each month. A business loan EMI calculator can help make a better decision.
  • Affordable Interest Rates: Many lending institutions provide business loans at competitive interest rates. Opting for a loan with low-interest rates and minimal processing fees significantly reduces borrowing costs. However, it largely depends on the loan amount, loan term, financial obligations, and the applicant’s creditworthiness. Moreover, many NBFCs offer business loans with no prepayment penalties or processing charges.
  • Improve the Credit Score: Business owners get a chance to improve their credit scores by obtaining working capital loans. Those with a decent credit score can make better financial choices in the future and grow their business faster. Enhancing the personal and company credit score increases a business’s cash flow, which is one of the most intriguing benefits of getting a business loan.
    • Increased Funding and Promotions: Every business aims to see its name go viral on social media. Once it has the cash, it gets more chances to advertise itself, apply modern marketing techniques, and run revenue-generating ads.
  • Liability-Free: Business owners do not need to pledge any collateral to obtain a working capital loan for small businesses. They simply need to run their business successfully for a few years and maintain a certain income level to get loan approval. It is helpful for small firms looking to ensure long-term growth and meet their immediate demands.
  • Tax Saving: business loan borrowers are eligible for various tax exemptions that considerably reduce their tax liabilities
  • Equipment Purchase: business loans help entrepreneurs purchase the much-needed equipment required to take their businesses to new heights.

Top Features of a Working Capital Loan

Working capital loans are small-ticket, short-term loans with the following salient features:

Ample Loan Amount: Whether the loan requirement is large or small, they can borrow unsecured business loans of up to ₹ 50 Lakh to meet their business’s growing needs.

Superfast Loan Processing: The loan process involves quick online application with brief in-person verification as there’s no collateral requirement. The documentation requirement is minimal with a business loan provider like Clix Capital.

No Collateral Requirement: Unsecured working capital loans do not require any collateral, guarantor, or security, reducing the asset loss risk for the business.

Reasonable Interest Rates: Interest rates are competitive, depending on the business vintage and the applicant’s credit profile.

Loan Tenure: Lending institutions sanction business loans with tenures ranging from 12 to 36 months. This allows borrowers to select a suitable loan tenure for easy and convenient repayment.

Processing Charges: Borrowers need to pay a nominal processing fee to process loans without any other hidden charges and costs.

Is a Small business loan Right for you?

A strong cash flow is necessary for any successful business. However, company owners must manage it efficiently. It keeps ebbing and flowing, and a business might find it challenging to meet certain expenses during downtimes or while planning for an expansion. That is when they need a Small business loan for their working capital needs. They are great funding opportunities for small businesses looking to cover their expenses, operate their businesses, and expand when the right time comes. Calculating loan EMIs using a business loan Calculator online can help business owners plan their repayment without hassle. 

By applying for a business loan online, small business owners can get funding without collateral at low-interest rates in the market. Getting a business loan is worthwhile now that you know what a working capital loan is and how it can benefit the business. It can help businesses reach new heights and overcome any financial obstacles. Easy eligibility conditions, minimal documentation requirements, and flexible repayment terms make it easier for company owners to obtain the funds they need and continue business operations hassle-free.

Last Updated on by Sathi

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