There is a fair chance that your enterprise’s working capital might run into a negative figure due to unprecedented circumstances. In which case, you would require extra capital to fund the deficit.
If you’re wanting to understand how to find working capital that suits your business requirements, you can consider the below sources of working capital finance to manage your company operations better -
1. Working Capital Loans
It is considered as one of the best sources of working capital finance that fund your short-term business needs. Offering funds up to Rs.45 lakh, these working capital loans are disbursed to your account within 24 hours and are hassle-free as they have simple eligibility criteria and require only 2 documents to be submitted.
2. Flexi Business Loans:
Get access to a pool of funds that can be used as and when required, with interest payable only on the used amount.
Bajaj Finserv Flexi Business Loans are the smarter way of managing your working capital as it lets you make multiple withdrawals and repayments on your loan to suit your business requirements. This is also an affordable business funding option as here you get an option to pay interest-only EMIs and lower your EMIs by up to 45% with this facility.
3. Invoice Financing
Particularly resorted to in cases where working capital runs into a negative, this working capital facility finances invoices that are unpaid by debtors, which blocks free cash or liquidity and negatively impacts working capital. In this manner, cash is provided to the firm when it needs the most.
Your business can choose any of these sources to meet working capital needs.
MSME stands for Micro, Small and Medium Enterprise. It was introduced by the Government of India in agreement with the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. As per this act, MSMEs are the enterprises involved in the production, processing or preservation of goods and commodities. Vital for economic growth, this sector contributes around one-third of the country’s GDP and generates employment for around 110 million of the population.
It also plays an important role in the socio-economic development of the country as many of these enterprises operate in rural India. According to the Government's annual report of 2018-2019, more than 6 lakh MSMEs operate in the country.
Initially, MSMEs were classified based on two factors - investment in plant/machinery and an annual turnover of the enterprises. However, the Ministry of Micro, Small and Medium Enterprises has recently revised the classification by combining these two factors into a single criterion.
The MUDRA loan is provided under the Pradhan Mantri MUDRA Yojana (PMMY) to non-farming and non-corporate micro and small enterprises. These enterprises can avail loans up to Rs.10 lakh under the MUDRA (Micro Units Development & Refinance Agency Ltd.) scheme.
We have discontinued this product (MUDRA Loan) at this time. Please reach out to us on +91-8698010101 to know more about the current financial services provided by us.
|Loan amount under Shishu||Up to Rs.50,000|
|Loan amount under Tarun||Rs.50,001 to Rs.500,000|
|Loan amount under Kishore||Rs.500,001 to Rs.10,00,000|
|Processing fees||0.5% for Tarun Loan, nil for others|
|Eligibility criteria||New and Existing Units|
|Repayment period||3-5 Years|
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