What Is a Working Capital Loan?

A working capital loan is a loan that is taken to finance a company's everyday operations. These loans are not used to buy long-term assets or investments and are, instead, used to provide the working capital that covers a company's short-term operational needs.

Those needs can include costs such as payroll, rent, and debt payments. In this way, working capital loans are simply corporate debt borrowings that are used by a company to finance its daily operations.

Features and benefits OF Working Capital:

FAQs on Working Capital Loan:

Working capital is calculated using this formula:

Working capital = Current assets - current liabilities

Current assets owned by the business include inventory, cash in hand, advance payments, etc. Current liabilities may include short-term debts, unpaid expenditures, outstanding payments to creditors, etc.

Trustcare Finservices Pvt.Ltd offers attractive and competitive rates of interest on working capital loans starting from 17% p.a.

To avail of a working capital loan from Bajaj Finserv, you need to meet simple eligibility parameters like: