Unlock Opportunities with Working Capital Loans
"Sufficient working capital is one of the most important factors in the success of an organization. Do you know the right mix of debt and equity for proper management of working capital"?
CA Naresh Bansal
(CEO, NKB Kredit Group)
Below 3 scenario table depicts the importance of "Right Mix of Debt & Equity"
Scenario 1
100% Capital
100% funds are invested by Business Owners
Annual Return 60%
Total earning is Rs.60 lakhs for owners on the investment of Rs. 1 crore i.e. ROI is 60% p.a.
Scenario 2
50% Capital & 50% Debt @15% p.a.
Rs 50 Lakhs are borrowed @15% p.a. & owners’ capital is also 50 lakhs
Annual Return is 105%
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.Interest payment will be Rs. 7.50 lakhs on 50 lakhs borrowed funds & Balance profit Rs 52.50 lakhs is for owners i.e. ROI is 105% .
Scenario 3
25% Capital & 75% Debt @15% p.a.
Rs. 75 Lakhs funds borrowed for Business @15% p.a. & remaining 25 lakhs invested by owners in the Business
Annual Return is 195%
Interest payment Rs 11.25 lakhs on Rs.75 lakh borrowed funds & rest profit is Rs 48.75 lakhs for owners on their investment of Rs 25 lakh, which translates into whopping 195% ROI from Business.
What is a Working Capital Loan?
Working capital loan is a source of finance which is temporarily acquired to manage daily costs for the business. The loans help a business cater for wages, rent, restocking of stock, or for some other expenses. Unlike the loans for long-term expansion or acquisition of assets, working capital loans are only intended to offer liquidity for short-term purposes. They come in different forms, such as secured and unsecured loans, overdraft facilities, and revolving lines of credit, providing flexibility to businesses of all sizes.
Why Do Businesses Require a Working Capital Loan?
Businesses usually face cash flow shortages, seasonal requirements, and short-term financial obligations. A working capital loan gives them the money to:
- Keep day-to-day operations running smoothly
- Pay salary, rent, and utility bills
- Replenish inventory and meet customer demand
- Overcome short-term financial challenges
- Capitalize on unexpected business opportunities
This finance keeps businesses well-capitalized, responsive, and competitive despite the state of the market.
Importance of a Working Capital Loan
Working capital loan is a vital financial instrument for startups, MSMEs, and small and medium businesses. It helps companies fill short-term liquidity requirements without disrupting business continuity. Given the banking system providing diversified loan schemes, companies can easily access funds according to their requirements. Working capital loans are most suitable for:
- MSMEs looking to leverage growth opportunities
- Startup companies that need business stability
- Companies with short-term cash shortages
- Self-employed professionals in need of business liquidity
Eligibility Criteria for Working Capital Loan
There are some requirements that companies must fulfil as set by banks and NBFCs to qualify for a working capital loan. The most important requirements are:
- Minimum business operating period (as specified by the lender)
- Minimum turnover requirements on a yearly basis
- Eligibility of MSMEs, private and public limited companies, and partnerships
Documents Required for a Working Capital Loan
For availing a working capital loan, the following documents are some of the requisites:
- Passport-size photograph with PAN Card
- Company register of business registration
- Three years back income tax returns (ITR) based funds flow report
- Credit Monitoring Arrangement (CMA) report in case of turnover Rs 5 crore and above
- Bank & auditors financial & audit reports
- Bank monthly/bimonthly/six monthly/bi-yearly statement for one year
- MoA & AoA documents of registered entities
Our Process
We provide a hassle-free working capital loan application for you:
- Strategic Financial Planning—We negotiate your business requirement, growth plan, and fund need.
- Multiple Lender Access—We introduce you to nationalized banks, private banks, NBFCs, and financial institutions for the most favorable loan schemes.
- No Collateral Restrictions—We deal in unsecured funding instruments, allowing you to raise funds upto 5 Crores without any hassle.
- Post-Funding Compliance—We assist with regulatory compliance and reporting following loan arrangement.
- Continuous Business Optimization—Our specialists offer regular support in financial planning and business operations optimization.
Post-Funding Compliance
After the confetti settles, let us handle the paperwork dance! We guide you through the due reporting and surveillance review processes required by financial institutions, ensuring everything runs smoothly and efficiently.
Ongoing Business Optimization
Your success is our mission. We stay by your side, offering financial expertise and strategic insights to help you optimize your operations and make the most of your newly acquired funds.
Why Choose Us?
With more than two decades of business finance experience, we are proud to be the first-choice partner to thousands of companies looking for working capital loans, whether they’re secured funding up to 5 crores or unsecured funding up to 200% of property value. Our client-centric philosophy, honesty, and commitment make it an effortless and painless funding process. We will be your partner for financial growth, and you will be able to access the funds you require without undue delay.
What Our Clients Say
We have approached with susceptible thoughts about fund raising because our quantum of funds was high & unable to offer security for it but when Mr. Bansal assure us about fund raising, we first doubted on his statements but thanks to his execution skills we achieved the desired funding in record timeframe.
– Vinay Modi
Presentation of good feature of a business & hard bargain on the cost is his one of the best skill to assess. May God bless him more to understand & deliver good work.
– Paramjit Singh
Mr. Bansal personally himself gives attention to minute detail of the business & highly focused on the results. A thorough gentle and transparent approach made him above the normal service providers.
– Abhishek Negi