MAM
Weekend Unwind with: White Rivers Media co-founder & Ceo Shrenik Gandhi
Mumbai: IndianTelevision moves on to the next in its series of informal, fun snippets that peek into the mind of corporate executives – akin to a virtual water cooler chat. An attempt to get to know the person behind the title a little better, by having them share their nuggets on life and their mantras to deal with the curveballs that life throws – not necessarily revolving around work life – and sometimes going beyond work.
This week, we have on the hot seat White Rivers Media Co-founder & Ceo Shrenik Gandhi. A zealous entrepreneur, Gandhi cofounded White Rivers Media in 2012. Since then, the agency has featured in Deloitte Tech Fast 50’s ranking- a benchmark of fast-growing tech companies worldwide- five years in a row. Gandhi is also a regular speaker at digital and entrepreneurship summits, including TedX.
So here goes…
ü Your mantra for life: My mantra for life is very straightforward- Give joy and pay it forward, always.
ü A book you are currently reading or planning to read: ‘Atomic Habits’ by James Clear is a book that has truly moved me.
ü Your fitness mantra, especially during the pandemic: My fitness routine has always been quite simple. It’s basically, getting a cardio workout by 7:30 am and dinner before 6:30 am.
ü Your comfort food: I’m a big fan of Indian cuisine. So, any Indian meal is my comfort food.
ü When the chips are down a quote/ philosophy that keeps you going: When the odds are not in our favour, it’s important to have faith in yourself and believe that things will get better. So my go-to quote in tough times has to be: ‘Believe. Believe in a better tomorrow, always’.
ü Your guilty pleasure: Binging on my favourite ice cream from NOTO would probably be it.
ü When was the last time you tried something new? I believe I am a curious learner by nature and someone open to new experiences. Last week I tried polishing my table tennis skills, while this week I’m going to try my hand at golf.
ü If you could give one piece of advice to your younger self, what would it be? For the longest time, I was afraid of failing. But if I could give my younger self a piece of advice, I’d say, “fail faster” because failure is what leads to growth.
ü What gets you excited about life? Every day, I get excited about the next day, because every tomorrow has the potential to be extraordinary.
ü What’s on top of your bucket list? Well, I have a long due vacation to Iceland, so it’s fair to say that backpacking in Iceland tops my bucket list.
ü A life lesson you learnt the hard way: Again, just two words- Fail fast
ü One thing you would most like to change about the world: The world is in desperate need of empathy, and it’s about time this changes. Apart from that, on a more practical note, more financial prudence is the need of the hour.
ü An activity that keeps you motivated / charged during tough times: Yoga is something that keeps me charged throughout the day, especially on challenging days.
ü What lifts your spirits when life gets you down? I think meditation works magically when life gets you down. It helps me clear my head which eventually leads me to come up with solutions.
ü Your go-to stress buster: As cliche as it may sound, getting some cardio done at the gym helps clear my mind, and it’s my go-to stress buster.
Most business owners treat their working capital limit like a safety net. It sits there, attached to their current account, ready to be drawn on whenever cash gets tight. And for routine operations, that arrangement works fine. But there are specific situations where a lump-sum loan disbursed quickly into your account is the smarter financial move. Knowing when to pick one over the other can save you real money and keep your business from getting stuck.
The Fundamental Difference People Overlook
A working capital limit, often structured as an overdraft or a revolving credit facility, gives you access to funds up to a pre-approved ceiling. You draw what you need, pay interest on what you use, and replenish it as receivables come in. It is designed for short-term, recurring needs like paying suppliers or covering payroll gaps.
A term loan disbursed quickly, on the other hand, drops a fixed amount into your account. You repay it in instalments over a set period, with a clear end date. The interest rate is typically fixed or at least predictable. These two products solve different problems, and treating them as interchangeable is where businesses get into trouble.
When Speed and Certainty Matter More Than Flexibility
Here’s a scenario that plays out constantly. A retailer gets an opportunity to buy inventory at a steep discount, but the supplier wants full payment within 48 hours. The retailer’s working capital limit is already partially drawn. The available balance might cover part of the order, but not all of it. Requesting a limit enhancement takes days, sometimes weeks, because the bank reassesses your financials.
An instant business loan solves this cleanly. You apply, get approval quickly, and the full amount lands in your account. You buy the inventory, sell it at full margin, and repay the loan over the next few months. The cost of interest on that loan is far less than the profit you would have lost by passing on the deal.
This pattern repeats across industries. A logistics company needs to repair a critical vehicle immediately. A restaurant has to replace kitchen equipment before the weekend rush. A manufacturer lands a large order but needs raw materials upfront. In each case, the need is urgent, specific, and finite. A revolving facility wasn’t built for these moments.
The Hidden Cost of Over-Relying on Working Capital Limits
There’s a psychological trap with revolving credit. Because it’s always available, business owners tend to lean on it for everything, including expenses that really should be financed separately. When you use your overdraft to fund a one-time capital purchase, you reduce the buffer available for daily operations. Then, when a genuine cash flow gap appears the following week, you’re scrambling.
Worse, many working capital limits come with annual renewal. If your financials have dipped, the bank can reduce your limit or decline renewal altogether. If you’ve been using the facility for purposes it wasn’t designed for, your utilisation patterns can actually work against you during the review.
A distinct term loan keeps your working capital limit clean. Your revolving facility handles day-to-day operations. Your loan handles the one-off expense. This separation makes your balance sheet easier to read and your banking relationship easier to manage.
Interest Rate Math That Favours Term Loans
Working capital limits often carry floating interest rates pegged to the bank’s benchmark. The rate adjusts, and over time, especially when monetary policy tightens, your cost of borrowing can creep up without you noticing because you’re only looking at the small daily interest debit.
A fixed-rate term loan gives you certainty. You know exactly what each instalment will be, which makes cash flow forecasting more accurate. For a specific expense with a known amount and a defined payback period, this predictability matters. You can map the repayment against the revenue that expense is expected to generate.
A working capital loan structured as a revolving facility makes sense when your borrowing needs fluctuate week to week. But when you know exactly how much you need and roughly how long it will take to pay back, a term product is almost always cheaper in total interest cost. The discipline of fixed repayments also prevents the slow balance creep that plagues overdraft users.
When Your Facility Is Maxed and Opportunity Knocks
Perhaps the most compelling case is the simplest one. Your existing limit is fully utilised. Business is good, money is coming in, but right now the account is stretched. A new opportunity appears. You can either let it pass or find additional funding fast.
Waiting for a limit increase is not a strategy when timing matters. Applying for a separate short-term loan, getting approval the same day or the next, and funding the opportunity directly is a concrete action with a measurable return. You are not adding long-term debt to your balance sheet. You are financing a specific transaction that pays for itself.
The smartest business owners don’t treat all credit as the same. They match the product to the need. Revolving facilities handle rhythm. Term loans handle moments. Getting that distinction right is one of the quieter advantages a well-run business holds over its competitors.
