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Working Capital Finance is a facility provided by the bank for the sole purpose of financing the everyday operations of the company. Working capital loans are not used to buy long-term assets or investments but are used to finance daily operational needs such as accounts payable, wages etc. Working capital finance is ideal for companies that have high cyclical sales to help with periods of reduced business activity and periods when revenue generation is unpredictable.
These facilities enable the business owners to efficiently cover any gaps in the working capital expenditures.
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