The following lists the types of or ways of getting a working capital loan in India –

1. Trade creditor – suppliers usually provide these type of loans by offering supplies at credit, at a premium if the case be.
2. Bank overdraft facility – Banks provide more money than already in the acc based on the credit rating of the acc holder.
3. Account receivable loan – this loan is obtained against confirmed sales order values of a business, based on credit rating of the applicant.
4. Factoring or advances – this is against some periodic payment that has been confirmed and will be received by the business.
5. Short term loans – usually for 6 to 12 months based on credit rating and relationship with the lender without requiring any collateral.
6. Equity funding – funding or investment that somebody puts in in return for interest or some other form of return. This loan is applicable when the credit history of the borrower is not good or below average.

Advantages of Working capital loan –

1. No collateral required.
2. Speed and flexibility
3. Funds at the discretion of the borrower

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2. With an increasing number of platforms like Freecharge etc facilitating mutual fund and other investments like stock trading, online trading will see a big jump in 2020.

3. Cryptocurrency monitoring and other online currencies that will start functioning need to be regulated – all these will require online setup and execution- Fintech will facilitate all these.

4. Mergers and acquisitions require a lot of financial tasks to be executed and coming 2020, with the Indian Govt bringing together Public Sector Banks being just one austerity measures among so many sell-offs and buy-ins /outs, Fintech has a serious role to play in these in order to improve execution and cut losses and expenses.

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