WORKING CAPITAL LOAN
A working capital loan is a type of short-term loan that is specifically designed to finance a company's day-to-day operational needs. These needs often include covering expenses such as payroll, inventory, and other short-term operational costs. The purpose of a working capital loan is to ensure that a business has enough liquidity to meet its short-term obligations and continue its normal operations. Working capital loans are usually short-term in nature, ranging from a few months to a couple of years. They are meant to address temporary cash flow issues rather than long-term financing needs. These loans are commonly used to fund everyday business expenses, manage seasonal fluctuations, take advantage of sudden business opportunities, or cover unexpected expenses.