- +91 9911175539
- info@loanguru.in
- Tilak Nagar
SME’s Loans
Small and Medium Enterprises (SMEs) play a pivotal role in driving economic growth and innovation. However, these businesses often face financial challenges when it comes to accessing capital for their day-to-day operations, expansion plans, or trade-related activities. SME loans tailored to the specific needs of these enterprises provide a lifeline of financial support. In this article, we will explore SME loans, with a focus on OD/CC loans, LC/BG loans, and FLC loans, and how they empower SMEs to achieve their goals and seize opportunities.
Working Capital Flexibility: OD/CC loans offer SMEs access to revolving credit facilities, providing the flexibility to withdraw funds up to a predetermined credit limit. This ensures a consistent flow of working capital to manage day-to-day expenses, bridge cash flow gaps, and seize business opportunities.
Trade Financing Support: LC (Letter of Credit) and BG (Bank Guarantee) loans assist SMEs in trade-related activities by providing financial guarantees to suppliers or buyers. LC loans facilitate smooth import and export transactions, while BG loans serve as a commitment to fulfill contractual obligations.
A foreign letter of credit is a vital tool in global trade. It assures sellers of payment upon meeting terms and protects buyers by ensuring payment is made only if conditions are satisfied. This mechanism fosters trust and facilitates secure cross-border transactions, supporting international trade’s growth.
