Options To Finance Working Capital

Are you looking for working capital financing?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/.

Any successful business needs working capital to fulfil its daily and monthly expenses. For most MSMEs, the working capital loan is the only way to keep a steady cash flow to cover the day-to-day costs. So, where to get the working capital you need for your factory or company?

The first thought that comes to anyone’s mind is from a bank. But, securing a working capital loan from banks is not easy. It requires a lot of paperwork and visits to a bank branch. Also, some banks do not approve working capital loan amounts less than a particular figure for MSMEs.

Moreover, for small to medium businesses with no proper record of cash flow, a working loan is connected to the business owner’s credit. And, in case of any missed payment or weak credit score, you will not get approval for a loan from the bank.

The good news: Red Fort Capital can help MSMEs with a finance working capital. Here are the best options for financing working capital.

 

Options For Finance Working Capital

 

Fortunately, with Red Fort Capital, there are several safe, faster, and flexible working capital options to choose from:

Term Loan

One of the most common ways for any small or large business to acquire funds is by way of taking up a term loan. This is a great way to secure working capital quickly. You will get money for a fixed duration, anywhere between 1 to 10 years or even more in some cases.

It can be a short term or long term loan given for a fixed period of time. You can repay this loan in fixed instalments (EMI) along with interest with Red Fort Capital. Also, the borrower can get either floating or fixed rates of interest for a term loan.

 

Flexi Loan

A Flexi Loan is a great option when you are looking for a flexible repayment option for a working capital loan. It works on the lines of the facility where you can get a certain loan limit on a tenor. So, MSMEs can borrow the needed amount and can align repayment with everyday business peaks and troughs.

Flexi working capital loans of Red Fort Capital – a reputed NBFC, are designed to help smooth out loan repayment for business. Whether it’s scaling production to win new contracts, investing in the training of workers, or even simply covering unexpected expenses, Flexi Loan can provide the cash you need to grow.

 

Bill Discounting

As per this fund-based working capital option, the bank buys and pays the bill or invoice drawn by the seller. The payment is made instantly after deducting a certain amount from the bill amount as a discount or commission.

The bank presents the bill to the purchaser and directly collects the bill amount. In case of payment delay, the bank charges a pre-fixed interest penalty from the supplier.

Bill discounting is a crucial working capital financing tool that fills the gap in fund realization between the sale date and the due date of receiving payment. So, it frees up the cash for working capital and other business needs.

But this option has a huge risk of fraud and illegitimacy of transactions for banks. So, banks have very stringent requirements when it comes to bill discounting. Plus, you may end up paying the cost of funds higher than other working capital financing options.

 

A Reliable Non-Banking Financial Company (NBFC)

 

NBFCs have far more lenient and flexible eligibility criteria. They look beyond your business’ credit history and use a holistic approach to assess your creditworthiness for funding. Because of their hassle-free process, lower interest rate, and exceptional customer services, NBFCs are progressively replacing traditional banks, especially for businesses.

Red Fort Capital is a reliable and reputed NBFC that has been financing growth-oriented credit to Industrial users. With a strong investment portfolio, the company believes in quick deal closure, pragmatic returns, and long-term partnerships.

One of Red Fort Capital’s borrowers is a plastic film manufacturer which needed a working capital loan to buy equipment. 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.

Another borrower needed to correct their working capital mismanagement due to COVID. They are a transportation company based out of Rajasthan. The company needed money in 10 days to pay their overdue and we funded them within 7 days.

For fast solution of Working Capital Loan. Call/WhatsApp at +91 9167333678 or apply at https://redfortcapital.com/.

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