Every growing MSME hits the point where own funds run short of the working capital cycle. The answer is usually a working capital loan, an overdraft or a mix of both.
Working capital term loan
You receive the full sanction upfront and repay in fixed EMIs. Best for one-time needs such as buying seasonal stock, funding a large order or setting up a new location.
Overdraft or cash credit
You get an approved limit and pay interest only on the amount you use, on the days you use it. Best for businesses with a steady billing cycle where inflows and outflows are lumpy.
For most small businesses a mix works well: a term loan for a defined capex plus an overdraft for the day-to-day cushion.
Ready to take the next step?
Talk to the nSquare advisory desk for a plan tailored to your numbers.
