What is Cash Credit?
Cash Credit (CC) is a flexible short-term loan facility provided by banks and financial institutions that allows businesses to withdraw funds up to a pre-approved limit. It's a popular way to finance working capital requirements, such as purchasing raw materials, managing inventory, and covering day-to-day operational expenses.
Unlike a traditional term loan where you receive a lump sum, a cash credit facility works like a bank account. You can withdraw and deposit funds as many times as you need, as long as you stay within your sanctioned limit. This makes it a highly convenient and cost-effective financing option for businesses with fluctuating cash flow needs.
How Does Cash Credit Work?
Features & Benefits of Cash Credit
Cash credit offers several advantages that make it an ideal choice for managing working capital.
Withdraw funds as and when required, providing great liquidity to manage business operations.
You only pay interest on the amount you withdraw, not on the entire sanctioned limit, making it cost-effective.
Once sanctioned, funds are readily available, allowing you to meet urgent financial needs promptly.
It is a revolving facility. The limit is reinstated as you repay the borrowed amount, offering continuous funding.
The interest paid on the cash credit facility is a business expense and can be claimed for tax deductions.
Responsible usage and timely repayment can help in building a strong credit profile for your business.
Eligibility Criteria for Cash Credit
While specific criteria may vary between lenders, here are some of the common eligibility requirements for availing a cash credit facility.
- The applicant must be a citizen of India.
- Age of the applicant should be between 25 and 70 years.
- A business vintage of at least 1 year is generally required.
- The business should have a stable source of income and a good repayment history.
- A good CIBIL score is essential for loan approval.
- The business must not have been blacklisted or have defaulted on previous loans.
Why Choose Quick Services?
Experienced Professionals
Our team consists of highly trained and experienced security and management experts.
Client-Centric Approach
We tailor our services to meet the unique needs and requirements of each client.
Reliability and Trust
Committed to providing dependable services that our clients can trust.
24/7 Support
Our support team is available around the clock to address any concerns.
