A working capital loan will let your business pay day-to-day liabilities on time.
The loan (short or medium-term) is dedicated for companies, which operate actively on the market and seek a way to mitigate the risk of payment crunches.
Companies use proceeds from this loan most often to purchase materials needed for production and goods as well as for financing current payments to suppliers and other companies.
A working capital loan is a non-renewable facility, the repayment schedule of which is individually defined. Depending on your preference, repayment of loan principal may be in instalments (monthly or quarterly) or all at once at the end of the tenor.
Benefits:
- Easy access to loan proceeds – upon disbursement the whole amount is made available on the current account.
- Additional money on the account permits punctual payment of liabilities during a temporary payment crunch (e.g. resulting from seasonality in the industry).
- Convenient choice of loan principal repayment method.
- Efficient business finances management thanks to a pre-defined repayment schedule.
