unsecured working capital loan

An unsecured working capital loan is a type of loan which does not require any type of collateral or any type of security or any guarantor to get the loan. With an unsecured working capital loan, a business can get a good amount of working capital loan. It takes around a day or two for the process and all the documents of the applicant. This is a very quick and tension-free way of covering the working capital deficits of a business.

Fast working capital loan

A fast-working capital loan is a type of quick funding. The business can apply for a loan and quickly get it with minimal formalities. The documents of the applicant are required. Then the process is easy to process and convenient.

Types of unsecured working capital loans

The different types of loans based on tenure and repayment are:

  1. Revolving loans: a type of working capital loan in which a person can withdraw a particular amount, repay it to the bank. The borrower can then again withdraw it. There is a particular limit to the amount that can be borrowed. However, there is no limit to the number of times a person borrows, unless the limit is not crossed. It is a type of flexible loan.
  2. Term loans: a type of loan in which the rate of interest is fixed and the tenure of the loan is also fixed. These loans can be used for fixed assets and long-term aspects.
  3. Consolidation loans: loans that help in the consolidation of existing loans are called consolidation.

The different types of a loan based on utilization:

  1. Wedding loan: a type of flexible loan that can be taken for wedding-related expenses.
  2. Vacation loan: a type of term loan that can be used to finance any holiday trip.
  3. Home renovation loan: type of loan used for the expenses of renovation of a house.
  4. Top-up loan: a type of additional loan over an already withdrawn loan amount.
  5. Bridge loan: type of loan to handle short-duration fund requirements. The tenure period is usually less than a year.
  6. Consumer durable loan: a type of loan to help buy gadgets and appliances.
  7. Business loan: type of loan to take care of infrastructural requirements of a business.
  8. Receivable financing: this is one type of loan given for expenses of a running business.

Uses of fast working capital loan:

The different uses of fast working capital are the following:

  1. Inventory fast working capital loan
  2. Payroll fast working capital loan
  3. Purchase/lease equipment loan
  4. Loans to pay bills or to the vendors
  5. Loan for tax payment
  6. Fast working capital loan to expand financing
  7. Working capital loan to maintain cash flow
  8. Loan for fulfilling advertising expenses
  9. A fast working capital loan to purchase machinery
  10. Fast working capital loan to buy supplies and types of equipment of the company.

Hence, both, unsecured and fast working capital loans can help any business grow and improve.