Working Capital Finance
Working Capital Finance in India
To adapt to the growing world one needs to manage every aspect of the business effectively. Many times it becomes difficult to manage finances. And thus, there comes the need for funds. Small or medium enterprises face these issues more frequently. Here, working capital finance helps in such a scenario. Working Capital is the difference between the company’s current assets and its current liability. This type of finance helps one in short-term operations like purchasing raw materials, undertaking operational payments, etc. Hence, the Working Capital Finance in India allows one to run its operations smoothly and efficiently.
- It helps with boosting the availability of cash in the business and improves business sales. Working capital finance is useful in providing effective cash management to businesses.
- The processing of this facility is quick with minimum documentation.
- It can opt-in both secured and unsecured ways depending upon the availability of collateral. Perhaps, companies having no collateral can avail this facility in unsecured funding but pertaining to creditworthy CIBIL score. However, companies with high credit ratings can avail of convenient loan tenures.
- Generally, the rate of interest is high in unsecured working capital, But We at Financiio Venture arrange a reasonable cost of borrowing for our clients.
Process of working capital finance from a case study at Financiio Venture.
Cycle for Working Capital Finance
The WC Cycle refers to the period taken to convert the company’s net current assets and liabilities into cash. The time gap between production and selling of goods into the market is high. The working capital cycle varies from industry to industry. The higher the turnaround time to convert the raw material to cash, the higher will be the requirement of working capital. All these factors finally hamper the working cycle of the company. Hence, working capital finance is the most easily available product in such a situation. There are 4 main elements in the WC cycle — Cash, Accounts Payable (creditors), Accounts Receivable (debtors), and Stock.
Advantages of a Machinery Loan
- Interest will be applicable only for the used fund.
- No fixed obligations of repayment as like Term Loans.
- Multiple working capital debt instruments are available, you can opt the one which is most suitable for you.
- You can raise the funds through working capital by pleading or not pleading with the property. In short, raising the funds without security is possible provided by the credit rating of the company.
- There are many good sources of funding which can give the exposure without pleading the property provided your credit rating must be good.
- Industry-specific debt instruments – which suits your business to grow.
Working Capital Instruments
Below is the list of a few of our WC instruments:
Cash Credit (CC)
Letter of Credit Discounting
Why Choose Financiio Venture?
If you're looking for an effortless and fast working capital financing process, Financiio Venture is the best place for you. As one of the top facilitators of working capital finance in India, we offer you financial support to help your short-term business needs. We provide expert guidance for the right selection of the working capital product, a quick turnaround time, and provide the best ROIs for you. Our expert customer support will provide you with complete information on everything you need to know about the loans as well as help you with anything throughout the tenure.
Financial instruments we arrange
Trade Finance Services
Bridge the gap between you and your export business working capitalRead More
Foreign Currency Funding
Mortgage your property to avail of Foreign Currency Funding in India.Read More
Working Capital Finance
Run your business operations smoothly and efficiently with working capitalRead More