The Difference: Working Capital Loans vs. Term Loans

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The Difference: Working Capital Loans vs. Term Loans

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When it comes to financial needs you always need hands-on come extra cash to uplift your business growth. with an option to customize your funding solution,it gets important to have a clear picture of working capital and term loan. The main difference lies between their repayment terms. – PowerPoint PPT presentation

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Title: The Difference: Working Capital Loans vs. Term Loans

1
THE DIFFERENCE WORKING CAPITAL LOANS VS. TERM
LOANS

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2
Working Capital Loans and Term Loans give enough
margin to their users to manipulate the funds and
use them to the full extent for the betterment of
the small businesses.
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3
What is a Working Capital loan?
A working capital loan is offered to cover the
short term financial needs of any small business
and the loan amount offered to you is in
accordance with the total cost of your running
business.
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4
What is a Term Loan ?
A Term Loan is a funding option used to cover the
expenses of acquiring a capital asset. Capital
asset means something or any valuables that have
a useful life of more than a year and something
that is not up for sales.
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5
Secured and Unsecured Funding option

A working capital loan is an unsecured funding
option.
A Term Loan, then you have to offer collateral,
meaning something valuable to the lender.

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6
Payment terms and Schedule

In Working Capital Loan you have to repay within
the time frame of four months. Mostly, the
interest rate is higher than the average.
A Term Loan is paid over a span of more than five
years. And repayment amount is calculated after
adding all the additional revenue generated.

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7
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