Credit or Working

Cash Credit or Working Capital

Cash Credit or Working Capital loan is a loan that is taken by businesses to run their daily operations such as buying raw materials, paying the storage area rent, fixing repairs, paying salaries or wages, or overhaul of machinery, etc., which are critical for supply chain management and inventory management. These loans are typically used to manage working capital, mainly because they are extended as an overdraft facility. The borrower can acquire this loan against adequate security in the form of assets or stock as well as use collateral such as stock, assets, or financial instruments of cash value higher than that of the loan. The borrower can also apply for cash credit against fixed deposits.

Furthermore, a cash credit account is created by the bank. The borrower uses this account to withdraw the funds as per requirement. The interest is chargeable for the funds withdrawn and for the period withdrawn and not on the entire loan approved by the lender. The key features of the cash credit or working capital loan are:


It is a multi-purpose loan available for different purposes. This includes procure raw material, pay the storage area rent, pay staff wages, working capital requirements, etc.


Interest is charged only on the withdrawn funds, and for the time it is used. And the interest is not applied to the remaining amount. As soon as the borrower repays some of the used funds in the account, then the interest rate is payable only on the remaining outstanding amount.


There is no restriction on the number of withdrawals from the cash credit account.


Fixed deposits or any other financial instruments can be kept as collateral to acquire the loan.

Advantage of Cash Credit / Working Capital Finance Services from Finnova Advisory

Finnova Advisory offers Cash Credit / Working Capital Finance assistance. We have formed alliances with numerous banks and financial institutions to provide a wide range of lender options. According to your eligibility and financial requirement, we recommend quick processing, competitive interest rates, and multiple collateral options to ensure that this is the best option for your business. We also deal with private, PSUs, co-operative banks, and NBFC’s.

Along with this, our team of specialists takes pride in offering unbiased advice to our customers regarding our services. Acting as a mediator, we are readily available to help you apply for corporate finances service from some leading banks and financial institutions.