How to Determine Your Working Capital Needs

Every business goes through a cyclical process. It has its own financial ups and downs during round the year. While we all hope that our business makes profits through the year, that seldom happens. It is a long gestation period before your growth and profitability graph stabilizes. Had it been just the customers you had to worry about, it would be fine. Unfortunately, that's not the case. Your costs are already rising by now, and you find it difficult to keep the business afloat. This can create tough times for small businesses. Thus, it becomes imperative that businesses find ways to secure themselves from cash-flow deficit during those lean periods.

So how exactly you prepare yourself for such situations? Well, the answer is a working capital loan. Whilst there are many ways you can fund your business, working capital loans in India can help you make it through those rough tides.

Working Capital Loans are handy small business financing tools that that help SMEs maintain a cushion of operating finance during the quiet days. Small businesses, typically use working capital loans to cover petty expenses, finance the day-to-day operations, pay for long-term investments and cover accounts payable and salaries for employees. Besides this working capital loans in India, can also help you purchase those crucial equipment and technologies that will boost your growth & profitability graphs.

Where Can You Get a Working Capital Loan in India?

The first thing that comes to your mind, when you think quick cash is family and friends. While this is an age-old practice of borrowing quick money, but these are often tricky and very expensive.

The second most obvious option that comes to mind are banks. However, banks can take a long time, minimum 3 weeks, to review your business’ financial status before approving your loan. Disbursal could take another 2-3 weeks if you are not able to provide all the required documents and collaterals on time. But small businesses cannot wait that long, because the requirement is for now.

The third type of working capital lender are non-banking financial companies or NBFCs. They offer various types of secured and unsecured working capital loans in India, faster than the traditional banks.

With advent of technology, a new breed of NBFCs, called Fintechs have come up. Fintech lenders offer online working capital loans in India with minimal paperwork. Many Fintech lenders offer unsecured loans so you need not worry if you do not have enough collaterals to produce.

Finding the right working capital loan that best fits your needs and at the most competitive rates takes time and patience. With so many lenders in the market, don’t be in a rush to borrow from the first. For more details, Visit our website https://www.smecorner.com/

SMEcorner is a digital lending platform, that helps SMEs in India meet their working capital needs with collateral-free business loans in just 72 hours.