Working Capital is the money available to meet various short-term requirements for running a business. To continue running a business it is important to cover expenses such as payroll, marketing costs, maintenance costs, etc. However, many times, a business may not have enough working capital to sustain the regular business activities.
Many entrepreneurs look up to their personal savings to take care of business finance. It might look good, but doesn’t always make business sense. Working Capital loans are a great way for Indian SMEs to get funds as they focus on optimizing their business operations and growth.
Such loans are typically not meant for buying long term assets or investments. It is always better to obtain a working capital loan and be ready with cash when you need it; as business success is all about making the right moves at the right time!
Obtaining a working capital loan is a prudent choice that small business owners can make. One can seek such a loan through various channels. There are many online payday loan providers in India but they charge high interest rates.
The Conventional Lending Process
Traditional lending involves extensive paperwork, collateral, and is time-consuming. The waiting period for borrowers is long, and positive results are not always guaranteed.
Also, traditional banks have very strict loan approval criteria. Many small business owners in India do not seek business financing through the organized lending sector. Many of them do not apply as they think they are not eligible, or think that their need is too small for a bank to consider. Also, the complicated conventional loan process discourages many from applying.
In this era of Fintech growth, there are multiple funding options available to those seeking business funding. Platform lending or online lending through Fintech companies is one great option for them to consider!
The Online Working Capital Loan Process
To start, one has to register with the lending platform (Click on link to apply now at Biz2credit) and fill out a quick loan application online. The applicant shares some personal and business information. This information will be used by the lenders to assess the applicant’s business health. The lenders will have more information than just a credit score to screen a loan application.
Once a completed application is submitted online, the borrower gets instant loan matches best-suited to their profile and business needs. The borrower can choose a lender from the instant loan matches received online and the application moves ahead at a fast pace from here.
The online process facilitates quick approval. The applicant submits scanned copies of all required documents online. At this stage, the lender might ask for additional information; but the online process is much faster than traditional lending.
Each loan application is assigned to a dedicated resource who assists the applicant at each stage of the process. The applicants can log into their account on the lending platform and get real-time information of their loan application status.
In case all paperwork is in order, the quick online disbursal of the working capital loan amount takes place into the borrower’s bank account. The entire process is easier, faster, and safer than the conventional loan process.
So, by seeking a working capital loan online, one can do away with multiple visits to the bank (s), applying with each bank separately and the long waiting period!
Applying for working capital loans online can work best for you in case you:
- Need quick funds for business operations
- Have found traditional lending too complicated on earlier occasions.
- Want small-size, but regular loans
Every business is distinct, so are its financial requirements. Online lending platforms such as Biz2Credit get you access to business funding options such as working capital loans at your fingertips. Simply register, apply online and fast-track your working capital loan quest!