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What is a long-term working capital?

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What is a long-term working capital?

A long term working capital is a loan that has a tenor of more than 12 months.

The primary advantages of these loans include:
1. Has lower interest rates as compared to that on short-term loans.
2. Gives more repayment time, thus enabling a business to adjust its borrowings with its long-term plans.
3. Provides flexibility by making it easier for businesses to repay it.
Businesses can use a long term working capital to maintain a healthy working capital or to fund its long-term growth plans.
Bajaj Finserv offers Long-Term Working Capital Loans up to Rs.20 lakh that can repaid in easy EMIs spreading across a period of 60 months.

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