Cash Credit Services

Flexible Working Capital for Your Business

Maintain business liquidity with our cash credit facilities. Ideal for managing inventory, receivables, and operational expenses with interest charged only on utilized amount.

Business financial operations
Service Overview

Understanding Cash Credit

Cash Credit is a working capital loan facility provided to businesses based on their inventory and receivables. Unlike traditional term loans, cash credit offers a revolving credit line that you can draw from and repay multiple times within the sanctioned limit.

This flexible financing solution is particularly beneficial for trading and manufacturing businesses that experience seasonal fluctuations in working capital requirements. Interest is charged only on the amount actually utilized, not on the total sanctioned limit, making it a cost-effective option.

Capital Mine Solution helps businesses secure cash credit facilities from leading banks and financial institutions. We assist with facility structuring, documentation, and ensuring you get optimal credit limits based on your business needs and asset base.

Warehouse inventory
Eligibility

Who Can Apply?

Cash credit facilities are available to businesses with inventory or receivables

Trading Companies

Businesses involved in buying and selling goods with significant inventory and regular turnover.

Manufacturing Units

Production facilities requiring working capital for raw materials, production cycles, and finished goods storage.

Retail Businesses

Retailers and wholesalers needing credit for stock purchases and managing seasonal demand variations.

Requirements

Eligibility Criteria

Business Requirements

  • Business vintage: 3+ years preferred
  • Profitable operations for 2+ years
  • Minimum annual turnover: ₹50 lakhs
  • Positive net worth and adequate collateral
  • Regular tax compliance and financial reporting

Asset Requirements

  • Adequate inventory stocks as primary security
  • Book debts and receivables as secondary security
  • Immovable property as collateral security
  • Valid inventory valuation and audit reports
  • Insurance coverage for stock and assets
Documentation

Required Documents

Essential documents for cash credit facility processing

Document Category Specific Documents
Business Registration Company registration, GST registration, PAN
Financial Statements Audited balance sheet, P&L, tax returns (3 years)
Bank Statements Last 12 months business bank statements
Inventory Reports Stock statements, valuation reports
Collateral Documents Property documents, insurance policies
KYC Documents Aadhaar, PAN, address proof of promoters
Advantages

Why Choose Our Cash Credit Service?

Interest on Utilized Amount

Pay interest only on the amount you actually use, not on the total sanctioned limit, optimizing your cost of capital.

Revolving Credit Facility

Draw and repay multiple times within the limit, providing continuous access to working capital as needed.

Flexible Repayment

No fixed EMI structure - repay as per your cash flow, with interest calculated on daily outstanding balance.

Higher Credit Limits

Secure substantial limits based on your inventory and receivables, supporting business growth and expansion.

No Usage Restrictions

Use funds for any legitimate business purpose - inventory purchase, operational expenses, or business development.

Expert Facility Structuring

Our team helps structure the facility optimally, balancing your security requirements with operational flexibility.

FAQ

Common Questions About Cash Credit

What is the difference between cash credit and overdraft?
Cash credit is typically secured against inventory and receivables, with higher limits and longer tenures suited for trading and manufacturing businesses. Overdraft is usually secured against fixed assets, offers more flexibility, and is better for short-term working capital needs. We help determine which facility suits your business model.
How is the cash credit limit determined?
The limit is primarily based on the value of your inventory and receivables, typically 60-75% of hypothecated stock value. Additionally, your business turnover, profitability, collateral strength, and the lender's risk assessment influence the final sanctioned limit. We help you present your business effectively to maximize your limit.
How often do I need to submit stock statements?
Most lenders require monthly stock statements showing current inventory levels and value. Some may require quarterly or half-yearly physical verification of stocks. We help you establish efficient reporting systems to meet these requirements while minimizing disruption to your operations.
Can I increase my cash credit limit over time?
Yes, cash credit limits can be enhanced based on business growth, increased inventory levels, improved financial performance, or additional collateral. We regularly review your facility and help you request limit enhancements when your business expansion justifies it.
Related Services

Explore Other Financial Solutions

Overdraft (OD)

Short-term working capital with flexible repayment options.

Learn More →

Business Loan

Term loans for business expansion and capital expenditure.

Learn More →

Loan Against Property

Secure substantial funding against your property assets.

Learn More →
Get Started

Ready to Optimize Your Working Capital?

Our experts are ready to help you secure the right cash credit facility for your business. Contact us today.

Apply Now