Working Capital Term Loan

What is the Full form of WCTL? WCTL Meaning 

WCTL Full Form – Working Capital Term Loan or WCTL is a type of loan which is taken by goods-producing businesses to be able to finance their day-to-day operations. Working capital is a type of capital which is used to finance daily needs. It is more commonly known as the difference between a business’ current assets and current liabilities. When a company is short of this type of capital, it takes a WCTL. This loan is not used for long-term investments. They are also referred to as debt borrowings as this loan can be utilised to repay loans, debts, rent, payroll and hence can save businesses from falling into a debt trap and becoming bankrupt. WCTL can be used to buy raw material. This mostly takes place in periods of seasonal demand. A seasonal demand is a demand for a particular good or service in a particular period or season. The demand finishes when the period or season comes to an end. Since an investment in raw materials for a seasonal demand is a short-term investment, WCTL is used to cover the finance of the purchase of those raw materials.