Working capital loans (Credit) are a special type of loan provided by banks or non-banks which are given to entrepreneurs to increase working capital such as purchasing inventory, business development, financing new projects or developing existing businesses. So the purpose of a working capital loan or credit is to increase working capital capabilities and develop the business. In general, working capital loans have a short term or only 12 months, and the debtor or borrower only needs to pay interest every month, while the principal can be paid at the end of the agreement. Apart from that, if the debtor does not have enough money to pay the principal, he can apply for a credit extension option.
