Working Capital

Working capital finance — structured around your cash cycle.

CC, OD, bill discounting and post-shipment lines work only when they match how your money actually moves. We design that match.

Working capital is the most under-structured product in Indian MSME lending. The wrong structure costs you either in interest or in rejected limits.

The right product for the right cycle

Cash Credit

Stock and debtor-backed limit for trading and manufacturing. Monthly DP statement.

Overdraft

Cash-flow-based revolving limit. See /business-overdraft for variants.

Bill Discounting

Advance against verified invoices — convert receivables to cash within 48 hours.

Post-Shipment Finance

Export-friendly limits backed by shipping documents and LC.

What lenders actually read in a WC file

  • Banking average balance vs drawing power
  • Debtor ageing — anything above 90 days is haircut
  • Stock statement consistency across months
  • GST turnover reconciled with ITR
  • Existing CC/OD utilisation with other lenders
  • CIBIL enquiries in the last 6 months

FAQ

Common questions

What's the difference between Cash Credit and an Overdraft?+

Cash Credit (CC) is stock-and-debtor-backed — the limit is drawn against your inventory and receivables, with monthly DP statements. An Overdraft (OD) is typically cash-flow-based or against an asset like FD/property. CC suits traders and manufacturers; OD suits service businesses and professionals.

How is a working-capital limit calculated?+

Most lenders use a holding-period formula — raw material days + WIP days + debtor days, less creditor days — applied to your turnover. A clean banking trail and GST turnover that reconciles with ITR are what get the formula to land in your favour.

Can I get working capital without collateral?+

Yes — up to ₹5 Cr under CGTMSE for eligible MSMEs, or unsecured OD lines from NBFCs typically up to ₹50 L based on banking strength. Beyond that, stock/debtor or property collateral unlocks larger limits at lower rates.

Next step

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  • No blind portal submissions
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