How does a working capital loan work?
Businesses often need extra cash to support their operations or meet urgent expenses. What if you don’t have enough funds at hand? How would you borrow from family and friends? Or, even worse, go into debt?
A working capital loan is a short-term loan secured against inventory, accounts receivable, or other assets that are held for resale. This type of financing allows businesses to access additional funds without having to sell existing assets.
Working capital loans are usually offered by banks and other financial institutions, but they come with certain risks. For example, the lender may require collateral or may charge higher interest rates compared to unsecured borrowing. In addition, borrowers should carefully consider whether the amount borrowed is sufficient to cover their immediate needs.
Here are three steps process to apply for a working capital loan from ZipLoan:
- Submit Application - Simply enter your personal, business, and financial info to receive a loan offer.
- Upload Documents - Upload digital copies of your documents in a single-step process for verification.
- Get Sanctioned - Receive your loan approval and disbursal within 3 working days*.
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