SME & MSME Loans
SME & MSME Loans
At AGSA Connect, we help businesses access a variety of working capital financing options tailored to meet short-term funding needs. Whether you’re a small enterprise or a growing MSME, the right financial tools can ensure smooth day-to-day operations and business continuity.
Types of Working Capital Finance :
- 1. Cash Credit / Bank Overdraft
- 2. Bill Discounting / Purchase of Bills
- 3. Bank Guarantee
- 4. Letter of Credit (LC)
- 5. Lease Rental Discounting (LRD)
Frequently asked questions
What is working capital finance and who needs it?
Working capital finance helps businesses meet their short-term operational needs, such as paying suppliers or managing payroll. It is especially useful for SMEs and MSMEs with seasonal or fluctuating cash flows.
Is collateral mandatory for working capital loans?
Some types, like cash credit, usually require collateral like property or inventory. Others, like bill discounting or letters of credit, are structured around receivables or agreements.
What is the difference between a bank guarantee and a letter of credit?
A bank guarantee assures payment if one party defaults, while a letter of credit guarantees payment once the seller fulfills the agreed terms.
How does Lease Rental Discounting (LRD) work?
LRD lets property owners raise funds based on future lease rentals. The rent is redirected to the lender for loan repayment, making it a structured and secure form of financing.