Running a business requires a steady flow of cash. Unexpected expenses, seasonal fluctuations, and delayed customer payments can disrupt this flow, hindering your ability to operate smoothly. This is where working capital loans come in. They provide a short-term financial boost to bridge these gaps and keep your business afloat.
But is Lendingkart the right lender for your working capital needs? Let’s delve into what Lendingkart offers and see if it aligns with your requirements.
What Lendingkart Offers
Lendingkart primarily offers business loans. However, depending on how you utilize the funds, it could be a source for working capital. Here’s a quick breakdown of what to consider:
- Loan Amount: Lendingkart offers loans up to ₹5,00,000 (around $6,700 USD). This might be suitable for small businesses with limited working capital needs.
- Interest Rates: Interest rates start at 11.99% APR, but can vary depending on your creditworthiness. This can be on the higher side compared to traditional working capital loans.
- Repayment Tenure: You can choose a repayment tenure ranging from 3 to 36 months.
Pros of Using Lendingkart for Working Capital
- Fast and Easy Application: Lendingkart boasts a quick and easy online application process. You can potentially get approved and receive the funds within a short timeframe.
- Flexibility: The flexible repayment options allow you to tailor your installments to your cash flow.
Cons to Consider
- Interest Rates: As mentioned earlier, the interest rates can be higher compared to other working capital loan options. This can make it a more expensive solution in the long run.
- Loan Amount Limits: The maximum loan amount might not be sufficient for businesses with larger working capital requirements.
- Not a Business Loan: Lendingkart business loans are not designed specifically for businesses. This means you might not get the same level of support or features typically offered by business loan providers.
Alternatives to Consider
- Small Business Loans from Banks: Traditional banks offer dedicated working capital loans with competitive interest rates and higher loan amounts. However, the application process can be lengthy and require more documentation.
- Line of Credit: A line of credit provides flexible access to funds up to a pre-approved limit. You only pay interest on the amount you use.
The Bottom Line
Lendingkart can be a quick and convenient option for businesses with very short term loans needs and a good credit history. However, for larger requirements or a more long-term solution, exploring traditional business loans or lines of credit might be more suitable. Carefully consider the interest rates, loan amount limitations, and potential alternatives before making a decision.
