Working Capital Loans can Boost Your Small Business in 7 Best ways

April 3, 2023
Updated on

Managing working capital is an integral part of achieving long-term success for a business. If you can’t manage cash flows properly to have readily available capital to cover day-to-day expenses, your business will suffer. Therefore, it is essential to determine how much money you are left over after all your short-term debts. If a shortfall is anticipated, it can be compensated for with a Working Capital Loan to tide your business over.

What is a Working Capital Loan?

Working capital loans (also known as operating capital loans) are used to cover the daily needs of your business. These loans are typically used to fund the working capital requirements or day-to-day operations of a company.

Here’s how  a Working Capital Loan can help your business grow:

  • A working capital loan will provide the cash you need to fund the short-term requirements of your business. 
  • These loans are intended to cover short-term expenses, so they are usually approved quickly, and with minimum documentation requirements.
  • These loans cover day-to-day operating costs for small business owners, who might encounter cash flow issues.
  • By taking a working capital loan, you can avoid losing out on a lucrative market opportunity due to a lack of funds.
  • A working capital loan can help you repair equipment, invest in training, or provide the funds you need to grow your company.
  • Working capital loans will also help you take on projects that require a decent long-term investment but won’t pay off right away.
  • If you work directly with people like builders, real estate agents, farmers, equipment manufacturers or provide services to them, you know how difficult it is to make ends meet during the slow seasons. A working capital loan is equivalent to setting money aside for a rainy day. 

The expression “cash is king” does hold true for small business entrepreneurs. For small businesses, having adequate working capital is key, because it can help them absorb losses and avoid and continue operations even in difficult circumstances. 

Kinara Capital is an NBFC that understands all these concerns about micro-small-and-medium enterprises (MSMEs) and hence, has curated products specifically designed to fulfil their needs.

Grow your MSME with collateral-free business loans

Apply for a working capital loan in 2 easy steps:

  1. Take a 1-minute eligibility check on our website
  2. If eligible, our Kinara loan officer will reach out and guide you through the next steps in your preferred language. 

Documentation Requirement:

  • Personal: Aadhaar card, PAN card, Driving License, or Passport.
  • Address proof for business and personal premises 
  • Finance proof: ITR papers, GST filings, banking statements or copies of passbooks over the last two years.
  • Company-related documents: Proof of business turnover for sole proprietors, certificates of firm registration.

How some Kinara Customers have benefited by availing a working capital Loan.

Manjunath Janamatti, Jaanu Industries 

“It was always my dream to become a business owner. This would not have been easy without the help of Kinara Capital. I was 22 years old when I launched my business and got my first loan from Kinara. This made me confident, and for the following years, every year I asked for a loan from Kinara to grow my business. Every year, they supported me! As a result, my business improved, and I employed more people. My dream to be an entrepreneur has come true because of Kinara Capital.”

Saraswathy, Saraswathy Steel

“When I started this business, we had seven workers, and now, I am providing consistent jobs and livelihoods to 25 workers, and they are also delighted. Kinara is the reason for my business growth. I hope in the future also that Kinara Capital will help meet our business needs.”

You may also like