ASR Financial Services

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Working Capital FinanceWorking Capital Finance for Micro, Small & Medium Enterprises. Working Capital Finance to meet their operating expenses, purchasing inventory, acquire earning assets, receivables financing, either by direct funding or by issuing letter of credit. Apart from financing for investing in fixed assets, every business also requires funds on a continual basis for carrying on its operations. These include amounts expenses incurred for purchase of raw material, manufacturing, selling, and administration until such goods are sold and the money is realized. Business transactions are generally carried on credit with a number of days elapsing subsequent to the sale being effected for realization of proceeds. While part of the raw material maybe purchased by credit, the business would still need to pay its employees, meet manufacturing & selling expenses (wages, power, supplies, transportation and communication) and the balance of its raw material purchases. Working capital refers to the source of financing required to by businesses on a continual basis for meeting these needs.  Thus the need for working capital arises from the prevalence of credit in business transactions, need to fund manufacturing and support and to account for the variations in the supply of raw material and demand for finished goods.  Key Benefits:-  Acquisition of factory, land and construction of building spaces.; Purchase of plant and machinery including lab equipment, testing equipment, etc.; Meeting working capital requirements, like raw materials, stock-in-progress, finished goods and for purchase or discounting of bills.; Temporary additional assistance for meeting the urgent needs of raw material.; Additional monitory assistance for any eligible purpose. The above key Benefits render limit based financing from banks ideal for working capital financing. This is because the client is charged interest only on the average outstanding utilized and is saved with the bother of reinvesting short term surpluses arising out of low working capital utilization at a point in time. Thus, working capital requirements are generally financed through limit based financing from banks.