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Nihon Impex Private Limited provide value added services related to Short Term Working Capital Loan.

Nihon Impex Private Limited provide value added services related to Short Term Working Capital Loan.

Nihon Impex Private Limited (Nihon), a Non-Banking Financial Company (NBFC) was incorporated in the year 1992 under the Companies Act, 1956. Nihon, being a NBFC Company, is registered with Reserve Bank of India bearing Certificate No. 05.02406. We are engaged in varied financial activities and provide a wide range of financial services such as Corporate loans, short term working capital loans, loan for purchase of machinery and equipments, project fundings, real estate financing and many more.

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A working capital loan is a loan that is taken to finance a company’s everyday operations. These loans are not used to buy long-term assets or investments and are, instead, used to provide the working capital that covers a company’s short-term operational needs.

Those needs can include costs such as payroll, rent, and debt payments. In this way, working capital loans are simply corporate debt borrowings that are used by a company to finance its daily operations.

Understanding Working Capital Loans

Sometimes a company does not have adequate cash on hand or asset liquidity to cover day-to-day operational expenses and, thus, will secure a loan for this purpose. Companies with high seasonality or cyclical sales may rely on working capital loans to help with periods of reduced business activity.

Our Short Term Working Capital Loan Include

  • A working capital loan is a loan taken to finance a company’s everyday operations.
  • Working capital loans are not used to buy long-term assets or investments; they are used to provide working capital to covers a company’s short-term operational needs.
  • Companies with high seasonality or cyclical sales may rely on working capital loans to help with periods of reduced business activity.
  • Working capital loans are often tied to a business owner’s personal credit, so missed payments or defaults may hurt their credit score.

Many companies do not have stable or predictable revenue throughout the year. Manufacturing companies, for example, may have cyclical sales that correspond with the needs of retailers. Most retailers sell more products during the fourth quarter—that is, during the holiday season—than at any other time of the year.

To supply retailers with the proper amount of goods, manufacturers typically conduct most of their production activity during the summer months, readying inventories for the fourth quarter push. Then, when the end of the year hits, retailers reduce manufacturing purchases as they focus on selling through their inventory, which subsequently reduces manufacturing sales.

Manufacturers with this type of seasonality often require a working capital loan to pay wages and other operating expenses during the quiet period of the fourth quarter. The loan is usually repaid by the time the company hits its busy season and no longer needs the financing. Businesses can also pledge their inventory to secure funds with warehouse financing.

We provide best-in-class service and solutions for our customers and believe in having complete transparency in our dealings as we understand and value the trust customers bestow upon us.

We take pride in recognizing the fact we at Nihon have made significant achievement and set benchmarks which in turn has helped in fuelling the economy and help build enterprises.