Working Capital Loan
Working Capital Loan in Ahmedabad
Working Capital loan is the loan that can be availed by corporate borrowers for the purpose of fulfill of Daily financials requirements/ Operational works like payroll, rent, and debt payments. Working capital loan to covers a company’s short-term operational needs not long-term assets.
Working Capital Loans For Small Business
Working Capital is granted both secured and unsecured in Nature. working capital loans are used to help companies bridge financial gaps, such as the time delay between the collection of accounts receivable and the need to repay debt or accounts payable.
Working Capital loan can be granted to any of the constitution like Proprietorship, Partnership firm, Private limited or Public ltd company. Generally, working Capital loan granted based on company’s Annual Turnover. The ratio is 20%-25% but mostly it depends upon various banks/NBFC internal policy.
Bank Over-Draft/ Cash Credit
Bank Over Draft is a Pre- Approved limit which is sanctioned by the Bank/ NBFC to his bank A/c and Interest Is charged only utilized amount only. Mostly people tried to avail its in Over draft form. This facility is given by the bank/ NBFC on the basis of good track records with the banks/NBFC and having clean track records of the loans & overall Good profile as well as Good Turn over.
Feature & Benefits of Working Capital Loan
- Easiest way to get the funds from bank/ NBFC and reduce the heavy capital investment by Promotors or owners.
- Its in a yearly- renewal basis and need to pay only interest instead of full EMI. so, they don’t need higher working capital for day-to-day Project activity.
- High chances of avail extra funds from other banks as current obligation is lower.
Criteria of Working Capital Loan
- Business vintage of at least 3 years, It should not be Start ups or newer projects
- Needs to maintain Bank Accounts, Fill ITR of 3 years etc
- Business should not be blacklisted and not at Negative Areas.
- Trust, small businesses, and NGOs are not eligible
ROI & Charges
| Loan Amount | Rs. 10 lac- 10 Cr |
|---|---|
| Tenure | 1 Year- Renewal Basis |
| ROI | 9.50 % – 12 % |
| Processing Fees | 0.25% -2% + GST |
| Foreclosure Charges | Its Depends on Bank to Bank |
| Part Payment Charges | Its Depends on Bank to Bank |
Document Requirement for Working Capital Loan
| Details | |
| ID Proof | PANCARD |
| Address Proof | Passport /Voter ID card / Driving License |
| Registration Proof | GST Certificate / MSME Certificate/ Gumastadhara |
| Income Proof | last 12-month GST Return |
| Banking | Last 12 month Current & Saving bank Ac statement |
| ITR | Last 3 years Audited ITR along with computation of income, Balance Sheet and P & L Ac |
| Current Year- Projections/ Provisionals | Current year performance and projected turnover etc |
| GST Returns | Last 12 month GST Returns |
How Moratorium Financial Services Will Help You?
We as a financial service provider, we will help clients to get the Working Capital loan from various bank/ NBFC as we have a tie up with all the financial institutes/ Banks and Having good relationship with them. we can able to provide faster process and smooth services at client’s doorstep across all locations. (Pan India).
Due to we have vast experience team and having good knowledge, we are able to provide service as per customer’s requirement/Needs. we will suggest bank/NBFC to client accordingly customer’s profiles and financial eligibility & we help Clients to get give best offer from banks. That will solve clients’ financial problems and our motto is “Not to lend but to help .