Working Capital Management Working Capital Finance | Page 9
Inventory Finance
Our purpose
Services
The loan that is taken for the
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. Sometimes
companies lack in having sufficient cash on hand or asset conversion for
covering the daily operational expenses, taking working capital loan acts as
basic corporate debt borrowings which are utilized by the business to
finance the daily operations of the company.
9
Visit our website for More information on
Inventory Finance
Page - 09