Cash Credit Facility Guidance
A working capital facility secured against your stock and receivables.
Overview
Cash credit (CC) is a short-term financing facility where the lender provides a limit based on your inventory and receivables. You can draw funds up to the limit and repay as your cash flow allows.
Key considerations
- Business vintage (typically 1+ years)
- Consistent stock and receivables
- GST filings
- Banking history
Typical eligibility
These are indicative criteria. Actual requirements vary by lender.
- Business vintage (typically 1+ years)
- Consistent stock and receivables
- GST filings
- Banking history
Typical documents
Document requirements vary by lender and loan type.
- Business registration
- GST returns
- Bank statements
- Stock and receivables statement
- Financial statements
Frequently asked questions
What is drawing power?
Drawing power is the amount you can withdraw, typically calculated as a percentage of your eligible stock and receivables. It may be reviewed periodically.
CC vs OD — what is the difference?
CC is typically secured against stock and receivables, while OD may be secured against a wider range of assets. Both are revolving facilities.
Your next step
Ready to explore Cash Credit?
Share your requirement and a SMFINCARE financing specialist will help you understand what to prepare.
This assessment is indicative and educational. It does not constitute a sanction, approval, credit decision or guarantee. Final eligibility, interest rate, loan amount, documentation and disbursement are determined by the relevant lender according to its policies and applicable law.