About Working Capital
In the B2B sector, the gap between paying your suppliers and receiving payments from your clients can severely choke your daily operations. Working Capital financing—primarily in the form of Cash Credit (CC) and Overdraft (OD) facilities—acts as a financial buffer, ensuring your business machinery never stops due to a lack of liquidity.
Unlike a standard term loan where you get a lump sum and pay a fixed EMI, a Working Capital facility functions like a revolving line of credit attached to your current account. You are assigned a maximum limit based on the value of your collateral (property, stock inventory, or book debts). You can freely withdraw funds up to this limit to pay vendors, manage payroll, or buy raw materials, and you deposit funds back as your clients pay you.
The most significant advantage of this facility is the interest calculation. You are charged interest only on the exact amount you utilize, and only for the exact number of days you utilize it. If your limit is ₹1 Crore, but you only use ₹10 Lakhs for 5 days to bridge a gap, your interest is calculated strictly on that ₹10 Lakhs for 5 days. This makes it a highly efficient, indispensable tool for serious businesses.
Key Benefits
- Pay interest strictly on the utilized amount, not the approved limit.
- Revolving credit: funds replenish automatically upon deposit.
- Prevents supply chain stalls caused by delayed client receivables.
- Can be secured against current assets (stock, invoices) or fixed assets (property).
- Annual renewal process allows limits to grow alongside your business turnover.
- Enhances your purchasing power, allowing you to negotiate bulk cash discounts from suppliers.
Why Choose Our Working Capital?
We partner with top banks to bring you unbeatable terms, transparency, and zero hidden charges.
Revolving Credit
Withdraw funds when needed, deposit when payments arrive. Your credit limit replenishes automatically upon deposit.
Pay Interest Only on Usage
If your limit is ₹50 Lakhs, but you only use ₹10 Lakhs for 5 days, you only pay interest on ₹10 Lakhs for those 5 days.
Stock & Book Debts Financing
Pledge your raw materials, finished goods, and unpaid invoices as security to unlock massive credit limits.
Who Can Apply?
- 1Entity Profile: Manufacturers, Traders, Retailers, and Service Providers.
- 2Financials: Positive net worth and a healthy Current Ratio (Assets vs Liabilities).
Document Checklist
Financials & Projections
- Audited Financials (3 years)
- CMA Data / Projected Financials
- Stock and Debtors Statement