Working Capital Loan
Business Term Loan
||The amount is tailored to a company’s individual needs, and, therefore varies.
||Financial institutions usually set a fixed range for the loan amount in this case.
||It is a short-term credit facility with tenure ranging up to 4 months.
||It is a mid-term loan with repayment term in the range of 1 – 5 years.
||Businesses avail a working capital loan to address short-term cash shortages or finance operations.
||It’s borrowed to meet high-end expenditures like buying new machinery, purchasing land, etc.
||It’s usually less stringent and, thus, easier to avail.
||Term loans involve stricter criteria and extended processes.