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Summary

A working capital loan is a short-term loan that businesses use to cover day-to-day operational expenses, not long-term investments.

  • Short-term (a few months up to ~1–2 years)
  • Linked to revenue
    • Cash based accounting 
    • Repay as a percentage of daily sales
  • No interest, but rather origination fee
  • Amortization based on Effective Interest Rate

Status

Under discussion ./ under design

Who is Involved

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