Working Capital Loans

Be it a small or large enterprise, working capital serves the lifeline for any business. An enterprise simply can’t function its day-to-day operations in the lack of sufficient capital.

MSME working capital loans or working capital loans for MSMEs are business loans taken by micro, small and medium enterprises without pledging a collateral. Hence, MSME working capital loans are unsecured giving the enterprise the benefit of focusing on the business, rather than pledging the collateral assets.

We can get you an MSME working capital loan within 24 hours. Contact us for details!

Benefits of an MSME Working Capital Loans

MSME working capital loans are typically a preferred choice over a regular business loan. Here are few reasons why:

  • Zero collateral requirement: When you are applying for an MSME working capital loan to support your business, you are not bound to pledge an asset as a collateral. 
  • Short-term repayment tenure: MSME working capital loans are short-term. You can pay the loan between 3 years to 5 years.     
  • Fast and easy loan approval process: With no asset/collateral to evaluate, the approval process becomes easy. At the same time, the banks/NBFC's tend to approve the loan for working capital fast.
  • Perfect for seasonal businesses: If you have a business where you deal with seasonal items such as winter clothes, seasonal fruits and other merchandise on demand, then getting an MSME working capital loan can assure a stable annual turnover. 
  • Freedom of spending limit: MSME Working capital loans are free from the usage vantage point. You are free to use the funds as and when you need given the fact that you need it for valid business purposes. Apart from this, there are no restrictions imposed on how you are using the loan.

Our Services for MSME Capital Working Loans

We design customized solutions for all kinds of corporations ranging from traditional working capital limits to unsecured trade finance, bill discounting etc. It enables enterprises to raise funds without pledging any collateral. With our innovative solutions, we help our clients with the cash flow crunch and maximize the business’ potential.

Our services include:

Working Capital Term Loan (WCTL)

  • WCTL is preferred when the enterprise is running low on working capital for its day-to-day expenses. Such loans are short-term loans and are offered on the basis of the enterprise’s regular expenditures.
  • WCTL is usually taken to purchase raw materials during seasonal demand, to pay off salaries, rent, utilities, to take up on large orders, advance pay to the suppliers and other repeating costs and overheads.
Cash Credit Limits or Cash Credit
  • When the enterprise needs instant and urgent working capital, Cash Credit (CC) can be the best option. CC is a short-term financing facility for MSMEs. The enterprise can borrow the money within the borrowing limits. You do not need to have a credit balance to avail CC. The repayment is done only on the amount taken from the available limit. 

Buyers’ Credit

    • Buyers’ Credit is a cost-friendly loan facility in foreign currency for imports. 
    • Buyers’ Credit is a working capital trade credit loan approved for an importer by an overseas lender such as a bank or other financial institutions in India as well as overseas to finance the import purchase for working capital and capital expenditure. 
    • Buyers’ Credit is a short-term loan taken to address gaps in the cash flow. This loan also extends the credit period depending upon the working capital cycle.   

    Trade finance for international operations

    • Trade Finance is a broad term covering several financial facilities that banks and enterprises make use of for making viable trade transactions.
    • Trade Finance embodies the financial options and products used by the enterprises to facilitate international trade and commerce. Trade Finance for international operations helps with scalable financing and increased cash flow. Importers and exporters find it viable to transact business through trade. 

    Trade finance for domestic operations

      • Trade financing is a healthy option for MSMEs as it makes the import and export possible. Trade finance: 
      • Lowers the payment risk
      • Lowers the pressure on the importer as well as the exporter
      • Comes with a pool of trade finance products and services
      • Comes with the option of Factoring, a method used by the exporters to increase their cash flow

      Unsecured loans

      • Unsecured loans are loans which do not require any collateral or third-party guarantee. These loans are a very good option for MSMEs especially when they are opting to scale up their business. Unsecured business loans can be taken to purchase raw materials, improve the infrastructure, or meet daily operating expenditures. 
      • We arrange unsecured business loans to meet your requirements to the last demand. These collateral-free business loans are designed to meet your demands in the best possible way.

      Get in touch with our team of experts to find out the best and easiest way to get a working capital loan.

      Why Maxigain Capital for Your MSME Working Capital Loan?

      MSME loan financing helps with enhanced funds liquidity for MSMEs and SMEs.

      Every business is unique, and so our solutions. We take a complete stock of your business and requirements, and then plan to come up with customized solutions. Our M.O. is based on, while working with corporates and other sectors, meeting goals and objectives of the demands. Whether it is unsecured trade finance, bill discounting or any other purpose, we can get you working capital from our huge network of lending institutions (banks, NBFCs etc.) within 24 hours of receiving the required set of documents.

      Maximize your business potential with Maxigain Capital. Get in touch with us today to keep your business going on the trajectory of growth. 

      Working Capital Loans

      Frequently Asked Questions

      An MSME working capital loan is a business loan taken to manage day-to-day operations such as salary management, rent payments, logistics payment, inventory maintenance, purchasing stock or raw materials etc. An MSME working capital loan is the loan taken without pledging a collateral/third-party guarantee.

      MSME working capital loans can be taken by individuals, start-ups, SMEs, MSMEs, Private and Public Limited Companies, Partnership Firms, Sole Proprietorships, self-employed professionals and other business entities. 

      You can borrow up to Rs. 5 crores as working capital under an MSME working capital loan.

      For securing a working capital loan, you need to have a good credit history as well as a healthy CIBIL score. To ensure a shiny report of credit history and CIBIL score, make sure you pay bills and/or debts regularly and on time.

      Maxigain Capital can get you an in-principal confirmation from the bank within 3 working days.  We help MSMEs with:

      • Obtaining the maximum amount of loan without needing collateral
      • At the lowest interest rate possible
      • Having the hassle-free and painless procedure in getting the business loan, and
      • Having the pleasure of fastest turnaround

      Our USP lies in bearing a huge network of lending facilities. Once we have gathered all your documents, we span out in the market to get the best deal, and also help you out in the pre and post-application process. You do not have to worry about getting constant inquiry or follow-up calls from the lending facilities because we believe in keeping our clients’ personal details safe and sound. In simple words, you focus on your business while letting us do the heavy lifting, for you!

      The interest rate on MSME working capital loans are typically higher than of term loans. The rate depends upon the business needs and type, the amount of loan, the lending facility’s policies, etc.

      If you are choosing an unsecured business loan as a working capital loan, then you do not need to pledge any collateral.

      A working capital loan is often cited to make the daily business operations smooth and hassle-free. These loans are not suitable for business expansion, but rather for meeting daily errands and to avoid cash flow crunch. 

      Working capital can be found out simply by subtracting the total current liabilities from current assets of the business. 

      Positive WC: Positive working capital is when your business has a higher number of current assets in comparison to the current liabilities. This is the ideal situation that all businesses strive for. With positive working capital, the business has scope of investing other than handling daily operational costs. 

      Negative WC: Negative working capital is when your business is burdened by higher current liabilities in comparison to the current assets. This type of working capital indicates that the business has no scope to invest or manage daily operational costs unless all the debts are paid off. 

      The repayment tenure for short-term MSME working capital loans can be from 3 years to 5 years.

      MSME working capital loans come with plenty of benefits such as:

      • Collateral free business loan
      • Fewer documents needed
      • Fast and easy loan approval process
      • Suitable for seasonal businesses, and 
      • Restriction-free spending