What Types of Financing Options are Available for Small and Medium sized businesses

Starting a business comes with its own challenges and risks. One of the biggest concerns for the growth of a company is gathering working capital for smooth operations. The first thing that comes to a business owner’s mind to gain working capital is to get a business loan.

But, when MSMEs approach traditional banks for loans, some banks offer very high-interest rates, and some do not approve the desired loan amount. Also, most banks have a complex loan process for small to medium businesses. As a result, securing the desired capital from banks can be a big challenge for small to medium businesses as compared to big firms.

This is where Red Fort Capital reputed NBFC helps companies grow and expand their business with a variety of business loans. Here are the types of financing options available for small to medium businesses at Red Fort Capital.

1. Term Loan

It is one of the most common types of MSMEs financing. Our term loan provides borrowers with a lump sum of cash upfront in exchange for some amount of cash or other valuable items. This loan type is best for small businesses with sound finical statements.

When you get a term loan from Red Fort Capital, you can choose the repayment options according to your desire based on your revenue. We offer term loans with fixed interest rates and floating rates too.

2. Supply Chain Financing

Red Fort Capital aims to lower financial costs and improve business efficiencies between buyer and supplier. Therefore, we offer supply chain financing solutions to MSMEs. It is a type of advance cash given by buyers to suppliers through a trusted financial agency that is Red Fort Capital.

Under this financing option, buyers agree to approve the invoices of their supplier by us. It provides short-term credit to sellers for working capital and also provides liquidity to both parties.

3. Inventory Purchase Loan

For every industry which indulges in selling, production, or trade, maintenance of stocks or inventory is a basic necessity. At different times, the companies have to replenish their inventory for various reasons. Also, the turn-around time for conversion of inventory to cash is different, due to which their capital gets locked.

But, the firm needs the capital to run everyday operations, this is where an inventory purchase loan comes in handy. It is a type of short-term business loan that help retailers to buy stock or to fulfill their daily expenses needs. This loan is secured against the available stock in the company that needs to be sold later.

Red Fort Capital offers inventory purchase loans at reasonable interest rates in the market. You can therefore apply for an inventory loan with us if you think you are not able to sell the stock before the invoice for the inventory is due for payment. Also, you can work with the stock at your convenience as long as the terms of the loan are met.

4. Receivable Financing

Receivables finance is a term loan that allows business can use their receivables again the loan amount. It is a great option for MSMEs who owe outstanding invoices for products they will be selling in the future. The primary benefit of applying for receivable financing with Red Fort Capital is that you get the approval for the loan within 24 hours. It is the best option to ensure liquidity and avoid any working capital problems that may affect the growth of your business.

5. Working Capital Financing

Working capital loans are types of small business loans taken to overcome the shortage of cash to operate a business on a day-to-day basis. It generates a balance in the cash flow necessary to run a business. This loan is also helpful to deal with a shortfall of cash during the off-season or meet demand during a peak season. Most eligible applicants are service providers, manufacturers, wholesalers, retailers, or traders engaged in exports and imports.

6. Construction Financing

Red Fort Capital offers Construction finance, which is a type of business funding especially designed to support contractors, sub-contractors, and the construction industry. You can use this to fund new projects, pay suppliers’ bills, and buy new construction equipment and machinery. With us, there are different types of construction financing available, including secured and unsecured.

It bridges the gap between completed or partially completed work and your customer paying you. Once you have outstanding bills or invoices for payment— you submit them to us. Once we check your papers and requirement, we will approve the loan within 24 hours. Red Fort Capital is quick and fast to help clients with the funds they need in the minimum possible time.

Red Fort Capital Is the Best Solution For all Types of Financing Needs

Red Fort Capital is a reliable and reputed NBFC that has been financing growth-oriented credit to businesses. We have multiple financing vehicles, including market leader Private Equity Funds, Red Fort Commercial Finance, a Principal Investing Group, and a Regulated investment-grade NBFC in India.

With a strong investment portfolio, the company believes in quick deal closure, pragmatic returns, and long-term partnerships. We offer various types of financing, including construction financing, term loans, receivable financing, working capital financing, and more.

One of Red Fort Capital’s borrowers is a manufacturer of polyolefin plastic used in ghee, milk, Amul powder, food delivery boxes, and other lamination products in Dadra and Nagar Haveli. The firm needed a term loan of Rs. 1.56 Cr for purchasing equipment. Later on when they were in need for more funding we provided additional funding of Rs. 1.17 Cr to expand the business. This shows how much Red Fort Capital values long term relationship.

Also, the company needed EMI flexibility & principal deferment. To help them, we provided a customized EMI schedule, created a principal reserve, and funded the loan in just ten days.

Are you looking for the best financing options for your business? Check in with the Red Fort Capital team to find a reliable, safe, and fast solution. Call/WhatsApp at +91 91673 33678 or apply at  https://redfortcapital.com.

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