About Working Capital Loans

[Suba]

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.

 

[HansonU99]

Working capital loan seems to be effective when you have a good business plans and restructured your business in a safe and remote area,it's also have a disadvantage so you need to be careful the way you handle the loan money so you won't be at debts

 

[Augusta]

I like this kind of Loan as it helps to increase working capital capabilities and develop the business. working capital loans have a short term returns

 

[Kera]

Working capital loan is only advisable if you want to expand your business operations. Interests are supposed to be very low.