If the money will turn into inventory or wait in unpaid invoices, you need working capital or cash credit. That limit should revolve as the cycle revolves.
If the money will sit in a machine, a vehicle, a shop or a building for years, you need a term loan, machinery loan, CV loan or LAP. Paying for a CNC on a 12-month WC line is how units choke.
A healthy MSME often needs both: a CC for the cycle and a term loan for capex. One EMI trying to do both jobs is usually the wrong design.
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