Business Loan
Working Capital Planning For Growing Businesses
Understand the cash conversion cycle before deciding how much working capital financing your business actually needs.
Start with the cash cycle
The gap between paying suppliers and collecting from customers determines your working capital requirement. Borrowing more than that gap adds cost without adding capacity.
Matching the product to the need
Recurring short-term gaps are usually better served by a revolving facility, while one-time investments such as machinery suit a term loan with matched tenure.
This article is educational and does not constitute a loan offer or guarantee approval. Actual terms depend on lender policy and applicant assessment.