Struggling To Repay Loans On Time? Check Out These Smart Tips.


If you have newly launched your business, chances are that you may be struggling to maintain a good balance between the current assets and liabilities of the business. If there is a lack of balance, your business can face a working capital deficit and meeting day-to-day expenses could become a challenge. This is when you must choose the right lending option for the business’s working capital needs.

Here, loan experts from CreditMantri have put together the top five ways that a new business owner can get working capital.

  1. Business Loan

Most businesses often use a business loan to fulfil their working capital needs. This can be easily availed from a bank or a financial institution. A business loan is a form of agreement between the lender and the business. Under this, the lender lends a specific amount of money to the business and expects the latter to repay it as per pre-decided timelines. These loans come with interest that has to be paid to the lender along with the principal amount.

While you can also take a personal loan and use it for your business, it makes sense to instead go for a specialized loan that can cater to the business needs. For instance, some business loans can help in kick-starting your small business and many can specifically help in purchasing new machinery, etc. 

However, business loans usually require a high credit score from both the business and the individuals behind the business. The creditworthiness of the company and the promoters along with a history of payments made is assessed while providing these loans. Sometimes, business loans are also available by offering collaterals such as personal property, company shares, etc.

In India, most business loans come with annual interest rates between 8% to 18%.

  1. Business Line of Credit

A business line of credit can be called a combination of regular loans and business credit cards. These are offered by banks and other lenders under the revolving credit umbrella. You can make use of this capital to meet various working capital needs of your new business and repay immediately or via instalments spread across a pre-decided tenure. The interest rate is immediately applied to the amount once this loan is borrowed. A business line of credit requires approval from the lender and the approval is dependent on the credit scores. 

A business line of credit is similar to a business loan since it considers credit history, repayment capability, and collateral available with the borrower.

  1. Business Credit Cards

Business credit cards help in keeping professional and personal expenses separate. These are also known as corporate credit cards and are specifically designed for business use. You can get business credit cards to meet the working capital needs of your business. These credit cards can be used to purchase, make payments and do bookings related to your business. If your business does not need a substantial amount of working capital, a business credit card can easily help in fulfilling small financial gaps without spending time on various bank approval processes.

If you have started a small business unit, a well-maintained business credit card can help in building good credit over time and get access to easy loans in the future.

  1. Get Specialised Funding Assistance from a Fintech Company

Partnering with a company specialising in various working capital needs can also be a good option while arranging for the working capital needs of your company. Fintech companies use technology to offer financial services to customers. These generally offer expert platforms designed to provide a cash boost to the finance ecosystem of any company. They also help in raising working capital for new businesses. Since these are technologically efficient, they are often preferred over traditional sources of working capital. You can apply for a loan with a fintech company through digital means and also get it within a matter of hours or a few days.

  1. Angel Investors

Angel investors are individuals who usually fall under the high-net-worth bracket. These individuals offer financial assistance to promising new ventures and businesses. This often comes in exchange for a share in the business, mostly in the form of an equity stake. Angel investors can provide a one-time financial boost or regular investments and support for various business growth stages.

While reaching out to an angel investor for your working capital needs, you should have a clear pitch for your business and points that highlight why the fund will be essential for business growth.

Angel investors often used various organised forums while looking for investment opportunities. You have to submit your business plans directly to these forums to get in touch with prospective angel investors. 


While all of the above-mentioned options can work well while seeking working capital support for your business, taking a loan from friends and family can also be considered as an option. However, it must be handled with a lot of caution, clear terms, and professionalism.


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