Some precautionary tips before taking working capital finance from any bank are:
MONEI MATTERS- Your Financial Partner - Compare different banks' interest rates, fees, and terms before applying for a loan. You can use online tools or consult experts to find the best deal for your business. Some online tools that can help you compare working capital finance options are Forbes Advisor India, ICICI Bank, and StockTrim. - Check your credit score and financial statements to ensure that you meet the bank's eligibility criteria. A good credit score can help you get lower interest rates and better terms. You can improve your credit score by paying your bills on time, reducing your debt, and avoiding errors in your credit report. - Read the loan agreement carefully and understand the repayment schedule, penalties, and other clauses. Some common penalties include late payment fees, prepayment charges, and default interest rates. To avoid prepayment charges, you can opt for a loan with no or low prepayment fees or negotiate with the bank to waive or reduce the char...