Here Are Few Tips On How To Grow Your Own Business
Posted by reema sharma on July 4th, 2019
What is business working capital and why is it important?
To put in simple terms, a working capital is a set of loans taken by a financial company for its regular operations. Thus the money rendered in these loans are not used for buying any assets or properties. Rather these loans are used for running the day-to-day needs for the company like the payroll, rents, and miscellaneous expenses or if any debt present.
The need for working capital loan arises when companies don’t have enough cash in their hand to run their day to day expenses. These type of loans are mainly seen in companies with high seasonality who strongly depend on seasonal sale cycles. The importance of working capital loan include:
Working capital helps in smooth running of daily business operations like payroll, production costs etc. Thus keeping solvency in business and uninterrupted production flow
• Keeping goodwill
When your current liabilities and expenses are paid on time and you don’t have multiple pending debts on market it enhances your goodwill. This in long run enhances your credibility as a company and also increases your credit score.
• Easy to get loans
As an enterprise when you have a good working capital along with minimal market dents getting loans in future becomes easy.
When all daily expenses are covered under a working loan the daily production and operations runs smoothly.
Now next after having a working capital comes the need for business loans. Whenever the term loans come into play, always remember that there are two broad categories for loans. The secured and the unsecured types. Now the different avenues an entrepreneur can take for fetching capital includes:
• The secured type where some collateral security or lien is given.
• The unsecured type doesn’t need any security however the interest rates are high in such cases.
• Although these are two of the most popular types of loans an entrepreneur can also take business cash advance. This one doesn't need any high credit score collateral. Any business which takes credit card as a form of payment can opt for this form.
• Try crowdfunding: There are some instances where crowdfunding sites can pledge over thousands of target audiences over various start-up projects. However remember that crowdfunding is always a short time fundraiser.
Be as succinct as possible
Another great way of rendering money is by asking private lenders. Some of the genuine money lenders with industry standard interest rates and flexi-pay facilities in Mumbai are:
• Atlanta Finances
Make sure to check their RBI and BSE listings and their credibility and take your loan to grow your business sky-high.
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About the Authorreema sharma
Joined: April 11th, 2019
Articles Posted: 12
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