What is the interest rate of a working capital loan?

Working capital loans are short-term loans that are usually taken out by businesses to meet cash flow requirements or pay off debts. They are often offered at higher rates than other types of loans due to their shorter repayment periods.

A working capital loan is a type of debt financing where the lender provides funds against collateral such as inventory or accounts receivable. The borrower uses these funds to finance its operations during the time period between receipt of the funds and payment of the principal and interest.

A working capital loan is typically secured by the collateral (inventory) and/or accounts receivable. The interest rate charged varies depending on the amount borrowed, the term of the loan, the quality of the collateral, the creditworthiness of the borrower, the risk profile of the borrower, and the prevailing market conditions.

People also read

instant business loan

ZipLoan is the Lender of Choice for Small Businesses.

Icon1

Minimal Documentation

No balance sheet needed

Icon4

No Prepayment Charges

After first 6 EMIs

Icon3

Receive Funds Within 3 Days*

Straight into your account

Solving Real problems

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.

Ready for Ziploan to
empower your business ?