How to Get More Working Capital to Grow Your Business

Short Description

Small Businesses need working capital loans to run their business. Here are the top ways to get access to working capital loan without collaterals or guarantors.

Working Capital is the lifeblood of a small business and every business needs working capital to cover their running costs and acquire new clients. While the traditional lenders offer the capital loan, they come with several clauses like the demand for collaterals in the form of residential or commercial properties and the entire process also takes a long time, which could be weeks or even months.

Here are the top ways to get more working capital to grow the respective business:

Restaurants

Restaurants need working capital loans to cover the lean patches and to promote themselves on the food delivery apps for the upcoming offer periods, while the offer period will bring in revenues, the restaurants need a working capital loan to cover the interim costs. The top digital lenders like Indifi offer working capital loans to the restaurants on the basis of their transactions with the food delivery apps. Restaurants can use these working capital loans to cover interim costs. They can also use working capital loans to cover costs like revamping the menu and paying staff salaries during the lean patches.

Retail Businesses

Retail shops need more funds to order goods in bulk from the manufacturers and distributors and in order to get additional margins, they need to pay in advance, which needs working capital loans. While, they are mostly unable to get such capital loan from the traditional lenders as they need collaterals, also the processing time with the traditional lenders is weeks or months, which defeats the entire purpose. Hence, the retail shops can reach the top digital lenders like Indifi for merchant cash advance which is based on the transactions against the card swipe machine and the retail shops can pay back with the customer transactions without having to plan repayments separately.

Travel Businesses

Travel Agents have always been categorised as a high-risk business by the traditional lenders and while the travel agents have a business which is heavily dependent on the availability of working capital loans. For instance, they need additional funds to book travel for a corporate client and while the corporates have their own credit period the travel agents have to pay in advance to the airlines and the travel booking aggregators. While traditional lenders do not offer capital first loans to the travel agents easily, the digital lenders like Indifi offer unsecured working capital loans to the travel agents based on their transactions with the travel booking aggregators and payment and repayment are both integrated with the travel aggregators to speed up the entire process and solve the working capital needs.

e-Commerce Sellers

e-Commerce Sellers have a unique requirement and they need working capital loans to optimise the inventory as they depend on inventory and early availability of stock to earn extra margins and to do that they need to book in advance from the manufacturers who may be based in different countries like China or Taiwan. While the traditional lenders find it difficult to help the e-Commerce sellers as they are mostly unable to offer any collaterals or surety. The digital lenders like Indifi help the e-commerce sellers by offering them working capital loans on the basis of their transactions with the e-commerce platforms making it easy for them to earn more and manage their working capital.

Hotels

Hotels run a business that needs a huge amount of working capital funds. While they have revenues coming in during the peak season, it becomes difficult for them to manage the offseason with limited availability of working capital loans. The traditional lenders need collaterals to assess the creditworthiness of hotels and as most small hotels run on a leased or rented premise they are unable to take advantage of these working capital loans. The digital lenders like Indifi offer special working capital loans for the hotels, these loans are based on the digital trace of transactions the hotels do with the online travel aggregators. Thus, the hotels can manage their working capital without having to offer collaterals and as the processing time of the digital lenders is quick, they can easily manage a lean phase and pay the salaries or manage running expenses without the sweat.