Economics · Working Capital Finance
What is the key benefit of utilizing working capital loans for a Micro, Small, and Medium Enterprise (MSME)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1They offer extended repayment periods lasting more than a decade.
- 2They offer flexibility in managing short-term mismatches in daily operational cash flows.✓
- 3They provide long-term financing for core capital assets like factory land.
- 4They always feature lower interest rates than long-term loans.
Correct answer
They offer flexibility in managing short-term mismatches in daily operational cash flows.
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