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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Ram Yadav

I have been running my business for over twelve years but have not been able to undertake expansion activities. I applied to Ziploan and they cleared my loan application in a very short span of time.

Kanchan Lata

I approached Ziploan for an equipment finance loan. Their eligibility criterion was easy to fulfill because it required only 2 years ITR and 10 lacs of annual banking credit.

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