Every business has a gap between money going out and money coming in — buying stock, paying staff and suppliers, then waiting 30, 60 or 90 days for customers to pay. A working capital loan fills that gap so the business keeps running smoothly.
What it is used for
- Buying stock or raw material, especially before a busy season
- Fulfilling a large order
- Paying suppliers, rent and salaries while receivables come in
- Managing seasonal ups and downs
Common forms
- Short-term business loan — a lump sum repaid in EMIs over months
- Overdraft — a limit on your current account; interest only on what you use
- Cash credit — a limit backed by stock and receivables
- Invoice discounting — an advance against invoices raised on customers
See working capital vs term loan for when each fits.
How much do you need?
A simple estimate: average monthly purchases × the months money stays stuck in stock and receivables, minus the credit your suppliers give you. Then check the EMI with the business loan EMI calculator.
What lenders look at
Business vintage, turnover, GST filings, banking history and the owner's credit record. Oxon Fintech collects banking history digitally through Account Aggregator, which shows your actual cash cycle. Read eligibility and documents.