Working Capital is the lifeblood for any business, small businesses need the day to day money or cash to meet the business requirements, acquire new clients or simply pay their staff, it all comes down to an efficient working capital management. Working Capital Management is the difference between a professionally run business and a badly managed business, a business which is successfully run always has enough cash or liquidity to meet the demands.

Every business type has different working capital requirements to run their day to day business, let us look at some examples of businesses that are common and have specific working capital challenges.

Retail Shops

Retail shops work on an inventory model, where they have to buy goods and then sell at a profit, their margin increases when they can buy in bulk as the manufacturers and distributors give special offers on bulk deals. However, that requires cash or working capital and also more inventory as they have to stock up the goods. This requires the retailers to go for working capital loans.

Travel Agents

Travel agents depend on working capital for running their day to day business, their main business comes from the corporates, who buy travel bookings in bulk from these agents. While, the corporates have their own payment guidelines and most of them take 30 days or more to make the payments, the travel agents have to pay for air tickets and hotel bookings to airlines, aggregators and hotels within 7 days. This creates a huge working capital gap and restricts travel agents to grow their business. A working capital loan helps travel agents to get more business and eventually earn more margins.


Restaurants have their own business cycle, some work more on weekends whereas some shine on weekdays depending upon the office goers. While, they need to stock up all the inventory on all days, also they need to pay their workforce and vendors irrespective of the season or off-season. This often creates a working capital gap and restaurants need working capital loans or the overdraft loan as traditionally called to run their day to day business.


Almost all the hotels located in a tourist place run a seasonal business, whereby they wait for the peak season to see fully occupied rooms and hotel full with guests. However, during the off-season the scene is different. While, hotels have to pay for all the manpower and amenities, the earning is not just there, it again needs a working capital loan to run the hotel business efficiently.

E-Commerce Sellers

E-Commerce sellers depend on volumes as the margin is very low. However, to increase their revenues the e-commerce sellers want to place bulk orders with the manufacturers from countries like China and Taiwan, this needs working capital to pay in advance. Thus, working capital loans are a lifeline for E-Commerce Seller to grow. 

While, these are a few challenges, almost every small business has working capital challenges, for which they need a working capital loan or an overdraft loan, as we have seen how working capital loans are needed to effectively run the business, the businesses depend on the the traditional lenders who offer overdraft loan to help them run their business. However, traditional lenders ask for collaterals and multiple documents to sanction the working capital loans, also the process is very rigid and takes a lot of time even weeks and months in a lot of cases.

This is where the digital lenders have been helping the small businesses with effective working capital loans that are completely unsecured and are based on the business transactions. For retail shops the loans are sanctioned against their card swipe machine transactions and hotels and restaurants get their working capital loans against the transactions with travel aggregators. Similarly E-Commerce vendors get their credit worthiness analyzed against their transactions with the e-commerce marketplaces. The digital lenders have a specific solution to almost all business types and the application process is really simple and fast.

Indifi is one such digital lenders, which has custom products for various small businesses to help them overcome working capital challenges, these are loans for specific purpose and can start from a 7 day loan as well. One can get up to INR 50 Lacs working capital loans approved within 24 hours with Indifi.