Cash credit and overdraft limits that keep your business running between paying suppliers and getting paid.
Working capital finance covers the gap every business lives with — money goes out to buy stock and pay wages long before customers pay their bills. A cash credit (CC) or overdraft (OD) limit lets you draw what you need, when you need it, and pay interest only on what you actually use.
Most businesses do not get turned down because the business is weak. They get turned down because the file was put together badly — projections that do not match the returns, stock statements that arrive late, or a limit request the numbers do not support. That is the part we handle.
We work with more than 25 banks and NBFCs, so the file goes to the lender most likely to say yes to your particular profile, rather than whichever bank you happen to hold an account with.
We would rather tell you a product is wrong for you than arrange the wrong one.
An incomplete file is the most common cause of delay. This is the usual list — we tell you exactly which apply to your case.
How long between paying for stock and getting paid? That number, more than turnover, decides the limit you can justify.
We calculate what your figures actually support — asking for far more than that is a common reason files get rejected outright.
Projections, ratios and fund flow, built to be consistent with your filed returns. Inconsistency here is what credit officers look for first.
Banks differ enormously in appetite by sector and by ticket size. We place the file where it fits.
We handle the queries, the credit discussion and the documentation until the limit is sanctioned and operative.
Most rejections are avoidable and have nothing to do with whether the business is sound. These are the ones we see most often.
What fixes it: Build projections from the actual returns and explain any jump in writing, before the bank asks.
What fixes it: Ask for a defensible limit now and enhance it at renewal once the account has a track record.
What fixes it: Six clean months of banking transforms how the file reads. It is worth waiting for.
What fixes it: Clear the overdues and let the bureau update before applying — usually 30 to 45 days.
What fixes it: Reconcile them before submission; this is the single most common query raised.
It comes from your turnover and how long your working capital cycle runs. For smaller limits, banks commonly assess against projected annual turnover; larger limits are assessed on the gap between current assets and other funding. We work out the defensible figure before approaching any bank.
In practice they work much the same — a limit you draw against and repay. Cash credit is normally secured against stock and book debts and is used by trading and manufacturing units; an overdraft is often secured against property or deposits. Which suits you depends on your security and your cycle.
Not always. The limit is primarily secured against stock and receivables. Many banks want collateral in addition, but eligible micro and small enterprises can often use CGTMSE guarantee cover instead of property.
Yes. Takeover of working capital limits is routine, and is usually worth exploring if your rate is high or your current bank will not enhance the limit. The new bank will want to see clean conduct on the existing account.
Three to eight weeks from a complete file is typical. Incomplete paperwork is what causes most of the delay, which is why we assemble the whole file before submitting anything.
A free first meeting with our loan experts — an honest answer on how much you can borrow and which bank fits you best.