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Importance of Working Capital in Business

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Small businesses need working capital loans to manage their current operations and also to grow their business Every business has unique requirements for a business loan to manage their working capital.

Working Capital in Business

Working Capital is the lifeblood of small businesses, it is the difference between assets and liabilities that a small business is currently having and effectively it is the cash in hand the company has at the moment. It is the working capital that enables a small business to offer its services to a new client or order new inventory items that will give it the next revenue. However, as per the recent surveys and reports, the small businesses are the one that suffers the maximum gap in the availability of the working capital and hence restricts their growth.

Small businesses need working capital loans to fulfil the temporary gaps in funding which help them to do business and grow. However, they have limited options when it comes to raising the working capital loans as the traditional lenders ask for collaterals like home or office properties to evaluate their creditworthiness for working capital loans and since most small businesses run from a rented or leased premise they stay out of the ambit of working capital loans with the traditional lenders. Another major roadblock in the time taken by the traditional lenders to offer the business loan to the small businesses, the traditional lenders have a lengthy process which involves multiple branch visits, documentation and valuation of collaterals. All this takes weeks or even months, which is against the very nature of the working capital loans as they are urgent in nature.

The top digital lenders like Indifi have been helping the small businesses with quick access to working capital loans without the requirement of any collaterals, these business loans can be acquired by the small businesses by simply filling a quick online application form with the basic business and KYC details and the evaluation of their creditworthiness is done by analysing the digital trace of transactions with the aggregators or the platforms the small businesses deal with. All this means a small business can avail the business loan from Indifi as quickly as within 24 hours itself. Here are some top reasons how working capital is important for individual businesses.

Retail Shops

Retail shops need working capital loans to order goods in bulk from the manufacturers and the distributors as that give them the ability to buy goods in bulk and earn better margins. The working capital loans not only allows them to buy in advance but also to manage inventory and hence help them grow their business. Also, retail shops need working capital loans to promote themselves during the festive seasons and other major shopping seasons as per their business and locality. Indifi helps the retail shops with easy business loans based on their transactions against the card swipe machine.

Travel Agents

Travel agents need working capital loans to book their tickets or holiday bookings with the aggregators, airlines and hotels, as they require payments in advance to provide the best rates and at the same time, the travel agents need to offer some credit period to their corporate clients as per their business models. Thus, travel agents can use working capital loans to earn better margins and grow their business. Indifi helps the travel agents by offering them quick working capital loans based upon their transactions with the travel booking aggregators.


Restaurants have a recurring need of working capital loans as they need to run timely promotional campaigns locally, digitally and on the food delivery apps to promote themselves. This promotion needs the restaurants to invest so that they may earn some additional revenue in the coming days, which needs a working capital loan. Indifi enables the restaurants with quick business loans in form of working capital loans, these loans are based upon their transactions with the food delivery apps.


A lot of hotels run a seasonal business and they need to invest in maintaining the same standards and pay staff salaries during the lean season, they need working capital loans to cover these costs during the lean season. Indifi helps hotels with working capital loans which are based on their transactions with the travel booking aggregators.

Similarly, the top digital lenders like Indifi are helping the small businesses with working capital loans up to INR 50 Lakhs to help them grow.

After working as digital marketing consultant for 4 years Deepak decided to leave and start his own Business. To know more about Deepak, find him on Facebook, LinkedIn now.


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