Working Capital Loan
Easy cash flow
Working Capital When You Need It Most.!
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About Bizolot Working Capital Loans
A working capital loan from Bizolot serves as a financial safety net for businesses, ensuring smooth day-to-day operations. Designed to cover short-term expenses like payroll, inventory, utilities, and other essential costs, these loans are pivotal in maintaining business momentum. Bizolot offers tailored working capital solutions, including secured options like lines of credit and trade financing, to address diverse operational needs. By preventing disruptions and enabling businesses to seize growth opportunities, these loans help ensure long-term stability and success.
When businesses face short-term cash flow challenges, a working capital loan acts as a financial bridge, covering immediate expenses and preventing operations from slowing down. For many, this facility is crucial for growth and continuity.
How Does a Working Capital Loan Work?
Imagine your business is awaiting payments from customers but still needs to cover salaries, rent, or utilities. Delayed payments or extended credit periods can create temporary cash flow gaps. A working capital loan from Bizolot is designed to fill these gaps—not for long-term investments like buying property, but for everyday expenses.
For example, if revenue dips in a particular month or a large bill is due, a working capital loan can provide immediate relief. With flexible terms, this financial support ensures your business stays on track during challenging times.
Typically designed for small and medium enterprises (SMEs), Bizolot’s working capital loans offer tenures ranging from 6 to 48 months, depending on the lender. Interest rates and loan amounts are determined based on your business turnover, aligning with RBI guidelines and individual bank policies.
Key Features of Bizolot Working Capital Loans
✔Loan Amount : Customized to your business requirements, tenure, and experience.
✔Interest Rate : Competitive rates tailored to borrower needs, varying by lender.
✔Collateral : Choose between secured and unsecured options. Collateral can include property, securities, or business assets, while unsecured loans rely on credit scores and financial statements.
✔Repayment Flexibility : Schedules aligned with your business cash flow for ease of repayment.
✔Eligibility Criteria : Borrowers must be between 21 and 65 years of age.
✔Processing Fee : A nominal fee applies, varying by lender.
✔Loan Applicability : Available to entrepreneurs, MSMEs, partnerships, sole proprietors, private/public companies, and self-employed professionals.
Documents Required
KYC Documents such as a copy of
✔Aadhar Card
✔Driver's License
✔Partnership Deed (if applicable)
✔Proof of Business
✔Other Financial Documents
Types of Working Capital Loans Offered by Bizolot
Fund-Based Working Capital Loans
Empower your business with financial flexibility to optimize cash flow and drive growth. Bizolot offers the following fund-based solutions :
✔Cash Credit/Overdraft : A versatile credit limit functions like a current account. You pay interest only on the utilized amount, offering flexibility for short-term needs.
✔Term Loans : Long-term funds for capital expansion or asset acquisition. These loans feature flexible repayment terms based on your cash flow.
✔Working Capital Demand Loans : Short-term loans to meet urgent cash flow needs, offering lower interest rates and structured repayment plans.
✔Export Credit : Tailored for exporters, covering pre- and post-shipment costs with options in INR or foreign currencies, often with interest subvention benefits.
✔Import Credit : Ideal for importers, this facility supports short-term and long-term requirements, also available in foreign currencies.
Non-Fund Based Working Capital Solutions
Bizolot’s non-fund solutions focus on providing financial security without immediate fund disbursement. Options include :
✔Letters of Credit (LC) : Facilitate smooth trade operations by enabling the purchase of raw materials and goods on credit.
✔Bank Guarantees : Widely accepted for domestic and international trade, offering credibility and assurance for your transactions.
✔Capex LC : Tailored for exporters, covering pre- and post-shipment costs with options in INR or foreign currencies, often with interest subvention benefits.
Customizable Working Capital Loans
Bizolot also offers flexible financing options to match your unique business needs :
✔ITR-Based Loans : Leverage your income tax returns to secure funds based on your financial records.
✔Bank Statement-Based Loans : Quick and tailored financing based on your bank transaction history.
✔Turnover-Based Loans : Access instant funds determined by your business turnover with minimal hassle.
Frequently Asked Questions
What is a working capital loan?
A working capital loan is a short-term financial solution designed to cover everyday business expenses, such as payroll, rent, utility bills, and inventory. It helps businesses maintain smooth operations and manage temporary cash flow gaps.
Who can apply for a working capital loan?
Entrepreneurs, MSMEs, partnerships, sole proprietors, private and public companies, as well as self-employed professionals, can apply for a working capital loan.
How is a working capital loan different from other business loans?
Unlike long-term business loans, working capital loans are meant for immediate operational needs rather than significant investments like buying property or machinery.
What types of working capital loans are available?
Bizolot offers various types of working capital loans:
What is the tenure of a working capital loan?
Working capital loan tenures typically range from 6 to 48 months, depending on the lender's terms and the borrower's requirements.
Is collateral required to avail of a working capital loan?
Working capital loans can be secured or unsecured:
How is the interest rate determined?
The interest rate varies from lender to lender and is typically based on your business’s financial health, turnover, and creditworthiness.
What is the loan amount I can get?
One time processing fee for a business loan is around 3% of the sanctioned loan amount.
How flexible is the repayment schedule?
Repayment schedules are designed to align with your business cash flow, ensuring ease of payment without disrupting operations.
Are there any fees associated with applying for a working capital loan?
Yes, a processing fee is charged when applying for a working capital loan. The fee varies depending on the lender.
What are the eligibility criteria for a working capital loan?
How can a working capital loan benefit my business?
A working capital loan can:
Can I customize the loan to suit my business needs?
Yes, Bizolot offers customizable working capital loans, allowing you to adjust loan terms, repayment schedules, and amounts based on your business's specific requirements.
How do I apply for a working capital loan with Bizolot?
Visit Bizolot’s platform, fill out the application form, and provide the required documents, such as financial records, bank statements, and proof of business operations. Our team will guide you through the process for swift approval.