Keep Your Business Always Moving

What is a Working Capital Loan?

A working capital loan is a short-term business loan designed to help companies fund their day-to-day operational expenses. Unlike loans that are used for long-term investments or assets, working capital loans are used to cover immediate and short-term needs.

At Explicit Finances, we understand that businesses often face cash flow gaps between receiving payments and meeting obligations. Our working capital loans bridge these gaps efficiently, ensuring your business runs without interruption.

What Can You Use It For?

• Purchasing inventory and raw materials
• Managing payroll and salaries
• Paying vendors and suppliers
• Covering operating expenses during slow seasons
• Managing receivables gaps
• Seizing bulk purchase opportunities
• Bridging payment delays from customers

Why Working Capital Matters

Strong working capital is the backbone of a healthy business. Even profitable businesses can face closure due to poor cash flow management. A working capital loan gives you the buffer to stay agile, competitive, and responsive to market opportunities.

Eligibility Criteria

• Business operational for at least 12 months
• Minimum annual turnover of ₹30 Lakhs
• Proprietorship, Partnership, LLP or Private Limited Company
• CIBIL score of 650 or above preferred
• GST registration required for turnover above threshold

Documents Required

• PAN Card and Aadhaar Card of promoters
• Business registration / incorporation documents
• Last 12 months bank statements
• GST returns for last 12 months
• Income Tax Returns for last 2 years

Key Benefits