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