An entrepreneurial wave has engulfed the day. At present, the number of new (recognized) startups is well over 14,000, a terrific rise from 733 (in 2016-17)—one major factor being the rise of fintech players in recent years. Thanks to them, all businesses, especially those that start from scratch, can now fuel their startups with easy money or "working capital loans", often with no collateral.
The fundamentals of business are quite simple & universal:
Money makes money: Startups earn more when they invest more. However, money is a complex entity, often because our markets are plagued with fatal myths, like this one:
Loans are BAD; because Loan= cash crunch= business failure.They tell you that you are already a failing enterprise if you are considering a loan.
However, we'd beg to differ. We say a smart working capital loan can build a roadmap to IPO listings! (You'll agree as you read along)
We often dread a loan for its never-ending cycle of EMIs. But unlike a home loan or a car loan, a "working capital loan" is much easier to avail and vital for a business
Working capital is a continuous want; one needs a consistent cash flow to pay the people who work for you ("payroll"), to pay the "rent" for the land used, for the machineries, and to restock components/ finished products for future needs ("inventory").
Company revenue may fluctuate monthly, seasonally or quarterly, but cash needs don't. In short, working capital is the money that keeps your startup going on a day-to-day basis. And a working capital loan makes sure you always have enough working capital in hand.
Working capital loans are basically two types: Secured loans (collateral required) and Unsecured loans (without collateral).
Some popular working capital loans are:
Consider the following scenario: Prasad, a 32-year-old farmer, decides to start an Agritech startup.
He has the expertise, the technology and the human people. He decides to bet on his idea by selling some of his assets and is making decent revenue. People like his products, but product sale is limited.
There is also a backlog of non-payments from clients, which will take time to recover. In technical terms, his company's liquidity (or cash in hand) is diminishing without affecting its market value.
His key concerns are:
If you are living this dilemma, don't fret! You are not alone. In India, millions of startup founders & merchants, from the smallest Kirana store to the largest supply chain owners, face this problem (or a part of it).
Many would agree that Prasad can perform much better if he gets monetary aid. And that is exactly where top fintech companies in India 2020, like the EnKash, enter the scene.
A Capital finance will help startups with the following:
The most important criterion for eligibility is a good credit score. However, it is highly dependent on your annual profit & revenue, your outstanding debt and length of credit history, among other variables.
A good credit score for startup loans is 700. You can get easy loan approvals, even with a low credit score on platforms like EnKash.
EnKash also offers virtual EnKash credit cards for smart corporate payments and advanced control over your finances right at your fingertip! To know more, check out the link below:
Financial aid, in the face of an emergency, can be quickly availed through:
At Enkash, we strive to assist all our entrepreneurs and wonderful risk-takers to easily get past any financial roadblocks.
Revolutionizing startups with easy money, EnKash offers:
To know more,visit: www.enkash.com. You can also click below on Signup Now and we will reach out to you soon.