Working Capital Management Working Capital Finance | Page 5

Working Capital Loan
Services
The loan that is taken for Our
the purpose
of financing the daily routine
operations of the business is called working capital loan. Working Capital
Finance loans cannot be used to make long-term investments or buy long-
term assets. They are used instead, to cover wages, accounts payable etc.
Those businesses and companies that have cyclical sales or high
seasonality usually rely on the working capital loans to help the business in
time of reduced business activity. The cash available for financing the
short-term operational needs of a business is called working capital.
Businesses that do not have a sound source of funding may stagger under
the weight of its own debt and capital funding is the fuel on which a
business can run successfully. Different options can be chosen by the
business in order to gain capital funding.
Sometimes, more than one option can be used for capital funding. The
selected mode of funding shall depend on the business’ desire to remain
5 and
in debt, solvency of business owners at time of founding of company
the amount of money business shall need to launch itself and maintain
through different situations.
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