Service · CC / OD · Bill and invoice discounting
Working capital, sized to your cash cycle.
Finance for stock, receivables and the day-to-day cash cycle: structured around how money actually moves through your business, then matched to a lender whose criteria you fit.
What it covers
The common forms, and what each one is for.
CC
Cash credit
A revolving limit drawn against your stock and receivables. You pay interest on what you use.
OD
Overdraft
A revolving limit on your current account, often backed by property or deposits.
BD / ID
Bill and invoice discounting
Cash against invoices raised on your buyers, before they pay.
Who it suits
Is this the right facility for you?
- Manufacturers holding raw material, work in progress and finished goods
- Traders, distributors and stockists carrying inventory
- Businesses whose buyers pay on credit terms
- Seasonal businesses that stock up ahead of peak demand
How lenders look at it
What a credit officer checks first.
01
Your operating cycle
How long cash stays tied up in stock and debtors before it comes back.
02
Drawing power
The part of the limit you can actually use, linked to the stock and debtor statements you submit.
03
Banking conduct
How your accounts have run: cheque returns, overdrawn days, and credits matching turnover.
04
Projections in CMA data
Expected turnover, margins and holding levels, and whether they hang together.
05
Existing borrowings
Your credit report and how current loans have been repaid.
06
Security offered
Stock and receivables as primary security, and any collateral the lender asks for.
How we help
From your numbers to a facility you can use.
1
Map the cash cycle
Stock days, debtor days and creditor days from your own books.
2
Size the limit
A figure your stock and receivables can support, so drawing power doesn't fall short.
3
Prepare CMA and the file
Projections, ratios and a complete document set, ready for the credit desk.
4
Approach, follow up, renew
Suitable banks and NBFCs, their queries handled, and support at annual renewal.
Mistakes we see often
- Using a working capital limit to buy machinery, then running short for stock
- Asking for a limit that stock and debtors cannot support
- Treating annual renewal as a formality until the limit is reduced
Documents
What this file usually needs.
Lenders differ. We confirm the exact list for your case after the first call.
- Last 3 years' financial statements and ITRs
- Last 12 months' bank statements (all current accounts)
- GST returns for the last 12 months
- Latest stock and debtor statements
- Sanction letters and repayment schedules of existing loans
- KYC of the business and promoters
Questions
Working Capital, answered.
What is the difference between cash credit and overdraft?
Both are revolving limits. Cash credit is usually drawn against stock and receivables; an overdraft is often backed by property, deposits or other assets. The right one depends on what your business holds.
How is the size of the limit decided?
Lenders look at your turnover, operating cycle, projections and security. Each lender applies its own method; we size the request so it holds up under theirs.
Can a newer business get a working capital limit?
Sometimes. Lenders weigh track record heavily. In the first call we tell you plainly where you stand and what would strengthen the case.
Is collateral always needed?
Not always. For eligible micro and small enterprises, credit guarantee cover such as CGTMSE can support collateral-free limits. Eligibility and the lender's policy decide.
Do you help with renewal?
Yes. Limits are reviewed periodically, usually every year. We prepare the renewal file so the limit is kept or enhanced, not cut.
Talk through your working capital need.
Free 30-minute review · 10 am – 7 pm IST, every day