Global Working Capital Loan Market Overview
A working capital loan is used to meet a company's short-term financial needs, such as payroll payments, short-term operations, bill payments, and trade credit. Bank overdrafts or lines of credit, short-term secured loans, and trade credit are all examples of working capital loans available on the market. A working capital loan is intended to supplement temporary working capital constraints with outside financing. Working capital loans can be used for many items, like tactical positioning of the business.
Similarly, a business owner can obtain a working capital loan in order to take advantage of any supplier discounts on large purchases. Such an investment in a resource that the company would need may be vital to the company's health and profit margins. Working capital loans are not often used for long-term assets and acquisitions, since there are other types of lending that provide better interest rates for this type of investment.
Working Capital Loan Market Dynamics
Due to a rise in the number of investors in recent years, the working capital loan market has expanded and is expected to expand during the forecast period. These loans are short-term business loans with one-year maturity duration. Furthermore, these loans are simple to obtain; however, they cannot be used to purchase or invest in long-term properties. Working capital loans are motivated by growth illiquidity in small companies, a high need for leveraging loans to fund debt, and the availability of simple and collateral-free loans. However, many factors such as a high risk of default and interest rate fluctuations stifle the development of the working capital loan industry.
Furthermore, the industry is expected to benefit from the growth of startups in emerging economies, which are often in need of working capital, as well as the increased use of new technologies in the lending process. To modernize their commercial lending industry, banks and financial institutions are implementing digitization solutions. This move is primarily the product of increased competition among banks and rising demand for a more streamlined and expedited commercial lending process. Commercial loan approvals can be expedited thanks to digitization, which can otherwise be a time-consuming and wasteful method. It also helps banks to reach new consumer segments and provide customer-centric solutions, resulting in increased productivity in the working capital loan industry.
Market Segmentation
By Type, Working Capital Loan has been segmented into: |
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By Application, Working Capital Loan has been segmented into: |
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Regions and Countries Level Analysis: |
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Increase in Adoption of Working Capital Loans and Applications
Over 28% of companies reported using banks to fund their working capital globally. For example, according to several research studies, working capital loan sanctions in India doubled from March to April 2020. Firms that use working capital loans have risen to 26% in East Asia-Pacific. Similarly, in Latin America, banks account for over 41% of working capital funding. Non-banking financial firms are now expanding their working capital loan businesses around the world. Reduced participation of banks in issuing cash flow-oriented loans and growing penetration of NBFCs in offering working capital loans have been major factors in the growth of non-banking financial companies (NBFC) loans in recent years.
Players Covered in Working Capital Loan market are :
- U.S. Bancorp
- Bank of America Corporation
- Wells Fargo & Company
- Citibank
- JPMorgan Chase & Co.
- BB&T
- PNC Financial Services Group Inc
- Regions Financial Corporation
- JPMorgan Chase Bank
- Citibank
To improve their role in the global working capital loan industry, these businesses have used a range of strategies, including product releases, alliances, agreements, mergers and acquisitions, and joint ventures.
New Launches to Boost the Working Capital Loan Market
To draw a wide base of borrowers, the working capital loan industry introduces new offerings on a regular basis. For instance, in April 2020, the Indian Overseas Bank began providing working capital loans to the agriculture sector in response to the COVID-19 pandemic. Similarly, in May 2020, smartphone behemoth Xiao revealed that it will begin offering working capital loans to its offline retail customers.
Frequently Asked Questions :
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1. What is a working capital?
A working capital loan is used to meet a company's short-term financial needs, such as payroll payments, short-term operations, bill payments, and trade credit.
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2. Who are the key players in Working Capital Loan market?
The key players mentioned are U.S. Bancorp, Bank of America Corporation, Wells Fargo & Company, Citibank, JPMorgan Chase & Co., BB&T, PNC Financial Services Group Inc, Regions Financial Corporation, JPMorgan Chase Bank, Citibank.
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3. What is driving the working capital loan market?
The industry is expected to benefit from the growth of startups in emerging economies, which are often in need of working capital, as well as the increased use of new technologies in the lending process.
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4. What percentage of companies use working capital loan in the world?
Over 28% of companies reported using banks to fund their working capital globally.
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5. What factors are major hinderance in the growth of working capital loan market?
However, many factors such as a high risk of default and interest rate fluctuations stifle the development of the working capital loan industry.
Table of Content 1. Market Overview of Working Capital Loan 1.1 Working Capital Loan Market Overview 1.1.1 Working Capital Loan Product Scope 1.1.2 Market Status and Outlook 1.2 Working Capital Loan Market Size by Regions: 2015 VS 2021 VS 2026 1.3 Working Capital Loan Historic Market Size by Regions (2015-2020) 1.4 Working Capital Loan Forecasted Market Size by Regions (2021-2026) 1.5 Covid-19 Impact on Key Regions, Keyword Market Size YoY Growth (2015-2026) 1.5.1 North America 1.5.2 East Asia 1.5.3 Europe 1.5.4 South Asia 1.5.5 Southeast Asia 1.5.6 Middle East 1.5.7 Africa 1.5.8 Oceania 1.5.9 South America 1.5.10 Rest of the World 1.6 Coronavirus Disease 2019 (Covid-19) Impact Will Have a Severe Impact on Global Growth 1.6.1 Covid-19 Impact: Global GDP Growth, 2019, 2020 and 2021 Projections 1.6.2 Covid-19 Impact: Commodity Prices Indices 1.6.3 Covid-19 Impact: Global Major Government Policy 2. Covid-19 Impact Working Capital Loan Sales Market by Type (2015-2026) 2.1 Global Working Capital Loan Historic Market Size by Type (2015-2020) 2.2 Global Working Capital Loan Forecasted Market Size by Type (2021-2026) 2.3 Banks 2.4 Non-Banking Financial Institutions 2.5 Others 3. Covid-19 Impact Working Capital Loan Sales Market by Application (2015-2026) 3.1 Global Working Capital Loan Historic Market Size by Application (2015-2020) 3.2 Global Working Capital Loan Forecasted Market Size by Application (2021-2026) 3.3 Business 3.4 Individuals 4. Covid-19 Impact Market Competition by Manufacturers 4.1 Global Working Capital Loan Production Capacity Market Share by Manufacturers (2015-2020) 4.2 Global Working Capital Loan Revenue Market Share by Manufacturers (2015-2020) 4.3 Global Working Capital Loan Average Price by Manufacturers (2015-2020) 5. Company Profiles and Key Figures in Working Capital Loan Business 5.1 U.S. Bancorp 5.1.1 U.S. Bancorp Company Profile 5.1.2 U.S. Bancorp Working Capital Loan Product Specification 5.1.3 U.S. Bancorp Working Capital Loan Production Capacity, Revenue, Price and Gross Margin (2015-2020) 5.2 Bank of America Corporation 5.2.1 Bank of America Corporation Company Profile 5.2.2 Bank of America Corporation Working Capital Loan Product Specification 5.2.3 Bank of America Corporation Working Capital Loan Production Capacity, Revenue, Price and Gross Margin (2015-2020) 5.3 Wells Fargo & Company 5.3.1 Wells Fargo & Company Company Profile 5.3.2 Wells Fargo & Company Working Capital Loan Product Specification 5.3.3 Wells Fargo & Company Working Capital Loan Production Capacity, Revenue, Price and Gross Margin (2015-2020) 5.4 Citibank 5.4.1 Citibank Company Profile 5.4.2 Citibank Working Capital Loan Product Specification 5.4.3 Citibank Working Capital Loan Production Capacity, Revenue, Price and Gross Margin (2015-2020) 5.5 JPMorgan Chase & Co. 5.5.1 JPMorgan Chase & Co. Company Profile 5.5.2 JPMorgan Chase & Co. Working Capital Loan Product Specification 5.5.3 JPMorgan Chase & Co. Working Capital Loan Production Capacity, Revenue, Price and Gross Margin (2015-2020) 5.6 BB&T 5.6.1 BB&T Company Profile 5.6.2 BB&T Working Capital Loan Product Specification 5.6.3 BB&T Working Capital Loan Production Capacity, Revenue, Price and Gross Margin (2015-2020) 5.7 PNC Financial Services Group Inc 5.7.1 PNC Financial Services Group Inc Company Profile 5.7.2 PNC Financial Services Group Inc Working Capital Loan Product Specification 5.7.3 PNC Financial Services Group Inc Working Capital Loan Production Capacity, Revenue, Price and Gross Margin (2015-2020) 5.8 Regions Financial Corporation 5.8.1 Regions Financial Corporation Company Profile 5.8.2 Regions Financial Corporation Working Capital Loan Product Specification 5.8.3 Regions Financial Corporation Working Capital Loan Production Capacity, Revenue, Price and Gross Margin (2015-2020) 5.9 JPMorgan Chase Bank 5.9.1 JPMorgan Chase Bank Company Profile 5.9.2 JPMorgan Chase Bank Working Capital Loan Product Specification 5.9.3 JPMorgan Chase Bank Working Capital Loan Production Capacity, Revenue, Price and Gross Margin (2015-2020) 5.10 Citibank 5.10.1 Citibank Company Profile 5.10.2 Citibank Working Capital Loan Product Specification 5.10.3 Citibank Working Capital Loan Production Capacity, Revenue, Price and Gross Margin (2015-2020) 6. North America 6.1 North America Working Capital Loan Market Size (2015-2026) 6.2 North America Working Capital Loan Key Players in North America (2015-2020) 6.3 North America Working Capital Loan Market Size by Type (2015-2020) 6.4 North America Working Capital Loan Market Size by Application (2015-2020) 7. East Asia 7.1 East Asia Working Capital Loan Market Size (2015-2026) 7.2 East Asia Working Capital Loan Key Players in North America (2015-2020) 7.3 East Asia Working Capital Loan Market Size by Type (2015-2020) 7.4 East Asia Working Capital Loan Market Size by Application (2015-2020) 8. Europe 8.1 Europe Working Capital Loan Market Size (2015-2026) 8.2 Europe Working Capital Loan Key Players in North America (2015-2020) 8.3 Europe Working Capital Loan Market Size by Type (2015-2020) 8.4 Europe Working Capital Loan Market Size by Application (2015-2020) 9. South Asia 9.1 South Asia Working Capital Loan Market Size (2015-2026) 9.2 South Asia Working Capital Loan Key Players in North America (2015-2020) 9.3 South Asia Working Capital Loan Market Size by Type (2015-2020) 9.4 South Asia Working Capital Loan Market Size by Application (2015-2020) 10. Southeast Asia 10.1 Southeast Asia Working Capital Loan Market Size (2015-2026) 10.2 Southeast Asia Working Capital Loan Key Players in North America (2015-2020) 10.3 Southeast Asia Working Capital Loan Market Size by Type (2015-2020) 10.4 Southeast Asia Working Capital Loan Market Size by Application (2015-2020) 11. Middle East 11.1 Middle East Working Capital Loan Market Size (2015-2026) 11.2 Middle East Working Capital Loan Key Players in North America (2015-2020) 11.3 Middle East Working Capital Loan Market Size by Type (2015-2020) 11.4 Middle East Working Capital Loan Market Size by Application (2015-2020) 12. Africa 12.1 Africa Working Capital Loan Market Size (2015-2026) 12.2 Africa Working Capital Loan Key Players in North America (2015-2020) 12.3 Africa Working Capital Loan Market Size by Type (2015-2020) 12.4 Africa Working Capital Loan Market Size by Application (2015-2020) 13. Oceania 13.1 Oceania Working Capital Loan Market Size (2015-2026) 13.2 Oceania Working Capital Loan Key Players in North America (2015-2020) 13.3 Oceania Working Capital Loan Market Size by Type (2015-2020) 13.4 Oceania Working Capital Loan Market Size by Application (2015-2020) 14. South America 14.1 South America Working Capital Loan Market Size (2015-2026) 14.2 South America Working Capital Loan Key Players in North America (2015-2020) 14.3 South America Working Capital Loan Market Size by Type (2015-2020) 14.4 South America Working Capital Loan Market Size by Application (2015-2020) 15. Rest of the World 15.1 Rest of the World Working Capital Loan Market Size (2015-2026) 15.2 Rest of the World Working Capital Loan Key Players in North America (2015-2020) 15.3 Rest of the World Working Capital Loan Market Size by Type (2015-2020) 15.4 Rest of the World Working Capital Loan Market Size by Application (2015-2020) 16 Working Capital Loan Market Dynamics 16.1 Covid-19 Impact Market Top Trends 16.2 Covid-19 Impact Market Drivers 16.3 Covid-19 Impact Market Challenges 16.4 Porter’s Five Forces Analysis 18 Regulatory Information 17 Analyst's Viewpoints/Conclusions 18 Appendix 18.1 Research Methodology 18.1.1 Methodology/Research Approach 18.1.2 Data Source 18.2 Disclaimer
Tables and figures Table Main Market Activities by Regions Table Market Revenue (M USD) and Growth Rate 2014-2019 Table Major Players Table Market Revenue (M USD) and Growth Rate 2014-2019 Table Major Players Table Market Revenue (M USD) and Growth Rate 2014-2019 Table Major Players Table Market Revenue (M USD) and Growth Rate 2014-2019 Table Major Players Table Market Revenue (M USD) and Growth Rate 2014-2019 Table Major Players Table Major Production Market share by Players 2018 Table Major Revenue (M USD) Market share by Players 2018 Table Production Market share by Major Regions in 2014-2019 Table Production Market share by Major Regions in 2019-2021 Table Revenue (M USD) Market share by Regions in 2014-2019 Table Revenue (M USD) Market share by Regions in 2019-2021 Table Industry Supply chain Analysis Table Raw material Prices Analysis 2014-2019 Table Raw material Suppliers Market Analysis Table Manufacturing Equipment Suppliers Analysis Figure Production Process Analysis Figure Production Cost Structure Table major End Users by Regions Table U.S. Bancorp Information List Figure Working Capital Loan Picture, Specifications and Applications of U.S. Bancorp Table Working Capital Loan Sales Volume, Price, Operating Cost, Operating Profits, Revenue (M USD) and Profits Margin of U.S. Bancorp 2018-2019 Figure Working Capital Loan Sales Volume and World Market Share of U.S. Bancorp 2018-2019 Table Bank of America Corporation Information List Figure Working Capital Loan Picture, Specifications and Applications of Bank of America Corporation Table Working Capital Loan Sales Volume, Price, Operating Cost, Operating Profits, Revenue (M USD) and Profits Margin of Bank of America Corporation 2018-2019 Figure Working Capital Loan Sales Volume and World Market Share of Bank of America Corporation 2018-2019 Table Wells Fargo & Company Information List Figure Working Capital Loan Picture, Specifications and Applications of Wells Fargo & Company Table Working Capital Loan Sales Volume, Price, Operating Cost, Operating Profits, Revenue (M USD) and Profits Margin of 2018-2019 Figure Working Capital Loan Sales Volume and World Market Share of Wells Fargo & Company 2018-2019 Table Business Locations Figure Supply channels Figure marketing strategy Table Major Distributors and contact information by Regions Table Major Customers and contact information by Regions Table USA Supply, Import, Export, Consumption and Consumption Value (M USD) Table Germany Supply, Import, Export, Consumption and Consumption Value (M USD) Table China Supply, Import, Export, Consumption and Consumption Value (M USD) Table Japan Supply, Import, Export, Consumption and Consumption Value (M USD) Table India Supply, Import, Export, Consumption and Consumption Value (M USD) Table World Demand by Regions Forecast Analysis of Working Capital Loan (2019-2021) Table World Price by Regions Forecast Analysis of Working Capital Loan (2019-2021) Table World Price by Types Forecast Analysis of Working Capital Loan (2019-2021) Table World Price by Applications Forecast Analysis of Working Capital Loan (2019-2021) Table World Revenue (M USD) by Regions Forecast Analysis of Working Capital Loan (2019-2021) Table World Revenue (M USD) by Types Forecast Analysis of Working Capital Loan (2019-2021) Table World Revenue (M USD) by Applications Forecast Analysis of Working Capital Loan (2019-2021)