Working Capital Loans play a crucial role in providing the necessary financial support for businesses, allowing them to work and grow smoothly. However, accessing the loans often involves specific conditions set by lenders. Understanding these conditions is important in order for the hassle free process. 

This is why we at SafEarth provide our EPC partners working capital loans in order to help accelerate their growth. 

Definition and Purpose of the Working Capital Loan

Working capital loans are specifically designed to cover short-term operational needs. Unlike other forms of financing that might focus on long-term investments or asset purchases, working capital loans are intended to help companies manage their day-to-day cash flow fluctuations. These loans are instrumental in ensuring a business can maintain its operations smoothly without facing cash shortages.

Here are key conditions that borrowers typically need to meet to avail working capital loans:

  1. Purchase Order (PO): These purchase orders act as evidence of incoming revenue streams and validate the demand for the products or services offered by the business. 
  2. Balance Sheet: Lenders typically require a thorough analysis of a company’s financial health and performance over the past few years. Providing the last three years’ balance sheets demonstrates the company’s stability, growth trajectory, and financial history.
  3. Creditworthiness: Lenders assess a borrower’s creditworthiness by evaluating their credit score, credit history, and financial health. A good credit score reflects a history of timely payments, responsible credit usage, and lower credit risk, making it easier to qualify for a loan. 
  4. Cash Flow and Debt Servicing Ability: Lenders assess a company’s ability to repay the loan based on its cash flow. 

How Can EPCs avail Working capital Loans:

EPCs can avail Working Capital loans in 3 easy steps:

  1. Sign Up on SafEarth
  2. Click on Request Finance on the Dashboard and Select Working Capital Loans
  3. Provide Required Documents

SafEarth then, provides you with multiple offers within 48 hours and you can have the loan sanctioned in under 3 days. 

Meeting the above criteria can significantly increase the borrower’s chances of availing working capital loan. Additionally, we at SafEarth help borrowers to choose the loan from different lenders and options to avail the most suitable terms and rates that align with their needs and financial capabilities. If you are an EPC company, looking to grow your business, then we invite you to join the SafEarth platform and make the most of the opportunities that we offer.


Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top