A working capital loan is money borrowed to finance the day-to-day operations of the business. This includes fixed, regular expenses such as rent for the factory shed and office, salaries and wages, office expenses, security costs, etc. A working capital loan is not usually used to buy assets or to make investments. However, there are no restrictions on how you use a working capital loan once it is sanctioned to you.
To make the best use of a working capital loan, read the answers to the frequently asked questions.