|Types of Working Capital Loan
||The said credit is extended by suppliers, when a business owner places a bulk order. Typically, such a loan is sanctioned based on profits, credit history, and creditworthiness.
||It is one of the most flexible working capital credit options. Notably, the bank overdraft facility comes with an approved loan limit.
||Entrepreneurs can access cash against their unpaid invoices and meet their working capital requirements easily, without impacting the company balance sheet. Such a facility accompanies attractive terms of service and easy repayment alternatives.
||One can benefit from this credit facility by selling accounts payable to a third-party at a discounted price.
||Through this option, businesses raise capital by selling their equity shares. In turn, losing a share of its ownership.
|Letter of Credit
||Sellers can use the letter of credit purchased by buyers to raise funds, in case of any delay or default in payment. However, they can access funds only after meeting specific conditions of a pre-defined agreement.