Cash Credit Facility
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Cash Credit Facility
Empowering Your Business with Flexible Working Capital Solutions
Our Cash Credit Facility is designed to provide your business with access to working capital for day-to-day operations. Whether you need to purchase inventory, manage payroll, or cover operational expenses, our cash credit product ensures you never face liquidity challenges.
Unlike long-term loans, a cash credit facility gives you the flexibility to withdraw funds as needed, up to a sanctioned limit, helping you manage your short-term financial needs efficiently.
Benefits of Cash Credit Facility
Cash Credit offer several benefits, including:
- Improved Cash Flow: Maintain smooth operations with readily available funds.
- Flexible Withdrawals: Withdraw funds as required, up to the approved limit.
- Pay Interest Only on Utilized Amount: Optimize your costs by paying interest only on what you use.
- No Equity Dilution: Retain complete ownership and control of your business.
- Revolving Credit: As you repay, the credit limit is restored for future use.
Features of Cash Credit Facility
- Credit Limit: Determined based on your business turnover, financial standing, and repayment capacity.
- Tenure: Typically sanctioned for 12 months, with annual renewal based on performance.
- Collateral Requirement: Can be secured against assets like inventory, receivables, or property, depending on eligibility.
- Repayment Structure: Flexible interest is charged monthly on the amount utilized; principal repayment as per agreed terms.
- Interest Rates: Competitive, based on your credit profile and market benchmarks.
- Usage: Ideal for financing working capital gaps like raw material purchases, salary payments, or general operating expenses.
Eligibility Criteria
To be eligible for a Cash Credit Facility:
- Business Vintage: Minimum 1–2 years of stable business operations.
- Financial Health: Positive cash flow and profitability preferred.
- Credit Profile: Good repayment history or credit score increases approval chances.
How to Apply for a Cash Credit Facility
Applying for a cash credit is a straightforward process:
- Check Eligibility: Use our online eligibility checker or speak to our representative.
- Submit Application: Upload or share necessary documents online or in-person.
- Get Approval: Quick verification followed by approval of the credit limit.
- Utilize Funds: Withdraw funds as needed, directly into your business account.
- Renewal: Subject to satisfactory usage and repayment, your limit can be renewed annually.