Working Capital Loan providers In Mumbai

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Every Corporate/Firm/Entity has working capital loan requirement to meet the entire range of short-term fund requirements that arise within their day-to-day operational cycle.

Working capital loans can help company in financing inventories, managing internal cash flows, supporting supply chains, funding production and marketing operations, providing cash support to business expansion and carrying current assets.

After establishment of a business, funds are needed to carry out day-to-day operations e.g., purchase of raw materials, payment of rent and taxes, telephone and electricity bills, wages and salaries, etc.

Target / Eligibility

• Proprietorship Firm
• Partnership Firm
• Private Limited / Limited Company

Purpose

Cash Credit facility is given against stock, so if any company is require to hold inventory in volume and for a long period, Cash Credit facility helps in keeping the inventory position. Generally bank finance 75% of the inventory value held by company on a particular day.

The other mode of working capital finance is in the form of Book Debts, which is against Sundry Receivables. In all type of industry there is a trend of giving credit to its customer in order to increase the margins and sales. Bank finance 50 – 60 % of these receivables who are below 90 days.

Non-funded instruments comprise letters of credit (inland and overseas) as well as bank guarantees (performance and financial) to cover advance payments, bid bonds etc.

Type of Finance

There are many types of working capital finance. It is normally in the form of Fund Based Finance and Non Fund Based Finance depending upon the requirement of Industry, Trade and Service Sector. Fund based facilities include cash credit, demand loan and bill discounting. Demand loans are considered also under the FCNR (B) scheme.

Banker

• State Bank of India
• Corporation Bank
• Canara Bank
• Bank of Baroda
• Dena Bank
• Central Bank of India

Security

Further these loans attract collateral security depending upon size and profile of the company. Some times it may require minimum of 75% and maximum 100% collateral as well depending upon the promoters, company’s profile and the industry. Collateral security should be in the form of Immovable Property either Residential Flat / Commercial Office / Shop. It should be in the name of Promoter, Director or any other related person, whose guarantee would also be required

Interest rate

Rate of Interest is subject to Company’s financial and managerial strength, Security offered and other factors roughly ranges from 11.05 to 14.50 %

Special Features

• Working Capital requirement is assessed based on Next years Projections
• Maximum funding will be 20% of Projected turnover of Next Year subject to working capital cycle
• For take over proposal, firm should be in profit for last two years

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Working Capital Demand Loan is a short term revolving loan facility given for the working capital requirement of the company. WCDL is more common with medium & large companies, which have large working capital requirements unlike CC, which is common with small companies. Working Capital demand loan is given when company has cyclical or seasonal business where in regular limit is not possible.

Target / Eligibility

• Proprietorship Firm
• Partnership Firm
• Private Limited / Limited Company

Purpose

• Meeting seasonal requirement
• Inventory and Book Debt Financing
• To pay Creditors in time

Type of Finance

• Demand Loan

Banker

• Majority of Nationalise Bank

Security

• 75 - 100% Collateral Required
• Collateral in the form of Immovable Property either Residential Flat / Commercial Office / Shop in the name of Promoter, Director or any other related person.
• Guarantee of Proprietor / Partners / Promoter is required
• Guarantee of person whose property given is also required

Interest rate

• Working Capital Loan Interest rate ranges from 11.05 to 14.50 %

Special Features

• Working Capital requirement is assessed based on seasonal Projections
• For take over proposal, firm should be in profit for last two years and has satisfactory track record in previous bank.

Approx. Get Latest Price

Every Business requires working capital finance to meet the entire range of short-term fund requirements that arise within their day-to-day operational cycle.

Working capital loans can help company in financing inventories, managing internal cash flows, supporting supply chains, funding production and marketing operations, providing cash support to business expansion and carrying current assets.

Target / Eligibility

• Proprietorship Firm
• Partnership Firm
• Private Limited / Limited Company

Purpose

• Meeting day to day Expenses
• Inventory and Book Debt Financing
• To pay Creditors in time

Type of Finance

• Cash Credit against Stock
• Overdraft against Book Debts
• Demand Loan for seasonal requirement
• Letter of Credit
• Buyers Credit
• Bank Guarantee

Banker

• State Bank of India
• Corporation Bank
• Canara Bank
• Bank of Baroda
• Dena Bank
• Central Bank of India

Security

• 75 - 100% Collateral Required
• Collateral in the form of Immovable Property either Residential Flat / Commercial Office / Shop
• It should be in the name of Promoter, Director or any other related person
• Guarantee of Proprietor / Partners / Promoter is required
• Guarantee of person whose property given is also required

Interest rate

• Working Capital Loan Interest rate is based on Base rate plus 1 - 4% depend upon entity’s financial rating, roughly ranges from 11.05 to 14.50 %

Special Features

• Working Capital requirement is assessed based on Next years Projections
• Maximum funding will be 20% of Projected turnover of Next Year subject to working capital cycle
• For take over proposal, firm should be in profit for last two years