A constant flow of working capital is essential for any small business looking for long-term success and growth. Even if a business has significant assets and profitability, it may not be able to survive due to a lack of stable working capital.
So what exactly is working capital?
Simply put, working capital is the difference between a company’s current assets and its current liabilities. This metric is used to calculate how much cash is available at any given time after the business has met its financial obligations. Working capital is essential for small businesses to maintain inventory levels, invest in marketing, develop new product lines, and more.
Money used to finance the day-to-day operations of a business, whether it is a wholesaler, distributor, retailer or any MSME, is called working capital. During a financial crisis, MSMEs can obtain working capital loans for a variety of reasons, such as when they need funds during periods of reduced business activity or when they want to expand a particular range of products or services.
To assist in the growth and expansion of MSME, the availability of financial support, especially from NBFCs, helps MSMEs to resolve issues such as late payments or the fulfillment of large orders.
How a Working Capital Loan Can Help Your Small Business Grow
Suppose your business receives a large order. To meet the requirements, you will need more raw materials and better equipment, and if there is a time constraint, you may also need more workers / employees. Now, if you don’t have a stable working capital, you may not be able to afford all of these expenses and end up losing control. This is where a working capital loan plays an important role.
A working capital loan can help cover the expenses of fulfilling large orders with quick disbursement and avoid loss of income. Lenders like Kinara Capital offer MSMEs fast working capital loans in as little as 24 hours with an online loan application process.
As your small business grows, you will need to hire new employees. In addition to training new employees, it is also necessary to continuously train existing employees, so that they keep abreast of the latest trends and methods of operation.
Working capital loans can be used to meet all of your business needs. When you need to hire more employees but don’t have enough financial backing, a working capital loan can come to your rescue. You can hire talented people to work for your business without putting a dent in your pocket.
You can also get a working capital loan to renovate your workspace or store. It helps build a good reputation with your current customers, attract new ones, and keep your business competitive.
Get the most out of a working capital loan
Most businesses go through a period when they receive a large number of orders and service requests. To meet growing customer demand, you need to expand your operations. You can easily achieve your goal right now by using a working capital loan. Working capital loans can be used to expand an office or factory, open a new location, or add supporting infrastructure, among other things. However, you need to make sure that you choose a reliable and flexible lender.
NBFCs like Kinara Capital offer unsecured working capital loans with terms ranging from 12 to 60 months. Plus, with their fully digital application process, you can get your loan approved and disbursed within 24 hours. All you need to do is complete a one-minute eligibility check, and if you qualify, you can continue with the application online or have a loan officer contact you for assistance.
So, don’t slow down your growth and take advantage of flexible working capital loans to unlock the true potential of your business!