Unlock the working capital your business needs to manage inventory, bridge receivables, and accelerate growth.
While a Term Loan is strictly restricted to acquiring fixed assets (like land or machinery), your day-to-day business operations require a different kind of liquidity. You cannot use a Term Loan to buy raw materials or pay off creditors. That is where a Cash Credit (CC) Facility becomes the lifeblood of your supply chain.
Securing the optimal CC limit requires more than just showing collateral; it requires mathematical proof of your working capital cycle and future turnover. We engineer the precise CMA (Credit Monitoring Arrangement) Data and financial projections that banks demand to sanction and scale your CC limits.
Banks do not issue open-ended credit lines. They calculate your CC eligibility based on strict working capital metrics—typically capping the limit at 25% of your estimated annual turnover (with the bank funding 20% and the borrower providing a 5% margin). To justify your requested limit, we build comprehensive 3-to-5 Year Financial Projections that seamlessly integrate:
Your actual, signed audited financials and tax returns from previous years, establishing a foundation of trust.
Real-time provisional data reflecting your current operational scale, backed by GST returns and bank metrics.
Strategically forecasted growth, calculating your operating cycle to ensure your CC limit scales with your ambition.
To expedite your Cash Credit sanction, our team will tightly manage your documentation and guide you through compiling a flawless profile for the bank.
Securing a Cash Credit facility is not a one-time event; it is an ongoing relationship with your bank. We manage the strict post-sanction compliances so your account drawing power is never frozen.
The CC limit is secured against your current assets (stock and debtors). We guide you through the execution of collateral deeds and the procurement of necessary stamp papers for hypothecation.
Banks require the hypothecated stock to be fully insured against fire and perils at all times. We ensure this requirement is documented, tracked, and filed correctly with the branch manager.
Banks require monthly, duly certified declarations of your stock and book debts to calculate your active drawing power (DP). We prepare and certify these statements accurately and on time.
Cash Credit limits expire annually. We proactively prepare the updated CMA data, projected financials, and progress reports required for your seamless yearly renewal and limit enhancement.
Don't let a lack of liquidity choke your daily operations or prevent you from fulfilling large client orders.
Partner with a financial team that understands exactly how to mathematically structure, strategically secure, and continuously maintain your working capital limits with the bank.