Documents Required
Individuals
Proprietorship
Partnership Firms
Process Timeline
Assessment of Client Needs
Analyze the business’s current working capital requirements based on its operations, industry, and growth plans.
Evaluation of Financial Position
Review financial statements, cash flow, inventory management, accounts receivable, and accounts payable to identify gaps.
Working Capital Analysis
Calculate key metrics such as the working capital ratio, cash conversion cycle, and net working capital to determine liquidity needs.
Determination of Funding Requirements
Estimate the amount of working capital required to maintain or improve business operations.
Identifying Financing Options
Explore financing options such as bank overdrafts, cash credit, short-term loans, invoice financing, or trade credit.
Documentation Preparation
Collect and prepare required documents such as financial statements, business plans, bank statements, and credit reports for loan applications.
Application for Working Capital Loans
Submit loan applications to banks or financial institutions with detailed proposals and supporting documentation.
Negotiation with Lenders
Negotiate terms such as interest rates, repayment schedules, and credit limits to secure favorable working capital financing.
Approval and Disbursement
Facilitate loan approval and ensure timely disbursement of funds to meet the business’s immediate operational needs.
Utilization and Monitoring
Track the utilization of working capital funds, ensuring they are used efficiently for operational expenses like inventory, salaries, or supplier payments.
Ongoing Support and Compliance
Provide periodic reviews of working capital management, ensure compliance with loan terms, and offer recommendations for optimizing cash flow.
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