Working Capital Loan vs Term Loan: Key Differences

Working capital fills short-term gaps — inventory, receivables, seasonal cash crunch. Term loans fund assets and expansion with fixed repayment over years.

MSMEs in manufacturing and trading often need both: OD for stock cycles and term loan for new equipment. Lenders assess each facility separately.

Mixing them wrong increases cost. We analyse your cash-flow cycle and suggest CC/OD, term loan, or machinery finance accordingly. Term loan options.