In today’s competitive and dynamic industrial environment, small manufacturers often face cash flow gaps that affect operations, payroll, raw material purchases, and delivery timelines. That’s where working capital loans come in—a powerful financing solution to bridge short-term financial needs and keep your business running smoothly.
At Bravima Solution Pvt Ltd, we help small manufacturers connect with leading NBFCs like Tata Capital, Bajaj Finserv, Fullerton India, and Lendingkart, offering tailored working capital loans.
What Is a Working Capital Loan?
A working capital loan is a short-term loan designed to cover a business’s daily operational costs such as:
- Purchase of raw materials
- Payment of salaries/wages
- Utility bills
- Inventory stocking
- Handling seasonal demand or delayed customer payments
Unlike term loans, working capital loans are not used to buy assets or expand operations—they’re specifically for managing short-term liquidity.
Why Working Capital Loans Are Vital for Small Manufacturers
1. Cash Flow Stability
Small manufacturers often face:
- Delayed payments from distributors/retailers
- Bulk purchase requirements
- Seasonal demand spikes
A working capital loan ensures you don’t have to pause production or compromise on procurement.
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2. Supplier & Employee Trust
With quick access to funds, you can:
- Pay suppliers on time (often availing early payment discounts)
- Ensure on-time salaries, building team morale
- Avoid production stoppages due to financial crunches
3. Manage Seasonal Production Surges
During festive seasons or bulk order periods, small manufacturers may need:
- Extra raw materials
- Temporary staff
- Extended work hours
A working capital loan helps handle these spikes without financial stress.
Types of Working Capital Loans for Small Manufacturers
| Loan Type | Features |
| Overdraft Facility | Flexible limit, interest only on used amount |
| Term Loan (Short Tenure) | Fixed EMI for 6–24 months |
| Cash Credit | Credit against inventory or receivables |
| Invoice Financing | Funds advanced against pending customer invoices |
| Line of Credit | Similar to credit card, revolving usage |
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Eligibility Criteria for Small Manufacturers
Though criteria may vary across banks/NBFCs, generally you’ll need:
- Business vintage: Minimum 1–2 years
- Annual turnover: ₹10 lakh+
- GST returns/ITRs: Last 1–2 years
- Bank statement: Last 6–12 months
- No major defaults in credit history
📌 CIBIL score: 650+ (750+ preferred for best rates)
Documents Required
- PAN & Aadhaar of business owner
- Business registration proof (GST, UDYAM, MSME Cert.)
- Bank statements (6–12 months)
- ITR filings (1–2 years)
- Sales/Purchase bills or invoices
- Audited Balance Sheet (for loans above ₹10L)
Top NBFCs Offering Working Capital Loans to Small Manufacturers
| Lender | Loan Limit | Interest Rate | Tenure |
| Bajaj Finserv | Up to ₹50L | From 12% p.a. | Up to 60 months |
| Tata Capital | ₹50K to ₹75L | From 13.5% p.a. | 12–60 months |
| Lendingkart | ₹50K to ₹2 Cr | 1.5–2% p.m. | 1–36 months |
| NeoGrowth | ₹2L to ₹50L | Varies | 6–36 months |
| FlexiLoans | ₹50K to ₹1 Cr | Varies | 6–36 months |
Benefits of Working Capital Loans for Manufacturers
- Keep production cycles running smoothly
- Avoid disruptions due to late client payments
- Pay interest only on what you use (OD/line of credit)
- Revolving credit—reuse funds as you repay
- Improve credit score through responsible repayment
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Challenges to Watch Out For
- High interest rates for unsecured loans
- Prepayment or processing charges
- Shorter tenure—may lead to cash crunch if not planned well
- Collateral might be required for large limits
Bravima Solution Expert Tip
Before choosing a lender:
- Compare interest rates, fees, and prepayment terms
- Check eligibility for government schemes like CGTMSE
- Look for lenders offering zero collateral working capital options
- Avoid using long-term funds for short-term needs
At Bravima Solution, we:
- Assess your working capital needs
- Match you with the best NBFCs
- Guide you through document prep & loan application
- Ensure fast approval and disbursal
Secure Your Business Funding – Apply in Minutes
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