Business Funding for MSMEs and Startups
Help with working capital, machinery loans, MUDRA and government scheme loans, and overdraft or cash credit limits, including project reports and CMA data.
Loans
Help getting a cash credit (CC) limit from a bank to run day-to-day business, with interest paid only on the amount you use.
- Loans
- Usually a few weeks after a complete proposal reaches the bank*
About CC Loan (Cash Credit) for Working Capital
A CC loan, or cash credit limit, is a working capital facility from a bank. You get a limit in your current account and can withdraw and repay as your business needs, usually paying interest only on the amount you actually use. It is generally secured against your stock and receivables (debtors).
Our desk in Nimta, Kolkata helps traders, manufacturers and service businesses prepare the CMA data, financial statements and stock statements a bank needs, and follows up until the bank decides. The limit, interest rate and security are set by the bank.
Cash credit limits are sanctioned by banks under their credit policy. The limit, interest rate, margin and security are decided by the bank. Approval is not guaranteed.
How a CC Limit Works
A flexible limit that moves with your business cycle.
Draw as you need
Withdraw up to your available limit whenever the business needs funds.
Interest on use
Interest is usually charged only on the amount used, for the days it is used.
Drawing power
What you can draw depends on your stock and debtors, after the bank's margin.
Yearly renewal
The limit is generally reviewed and renewed every year based on your financials.
Who Needs This Service
- Traders and wholesalers holding stock
- Manufacturers who need funds for raw material and wages
- Distributors and dealers waiting for payment from customers
- Service businesses with regular receivables
- Businesses moving from an overdraft or personal funds to a proper bank limit
Key Benefits
CMA data prepared
Projected and past financials in the format banks use to assess the limit.
Right limit assessed
We help you work out a sensible limit based on your turnover and cycle.
Complete bank file
Financials, stock statements and documents checked before submission.
Renewal support
Help with yearly renewal, stock statements and enhancement of the limit.
Eligibility and Applicability
- A running business with a current account and regular transactions
- Business registration such as GST, Udyam or trade licence, as applicable
- Financial statements and ITRs for recent years
- Stock and receivables that can be offered as primary security
Banks may also ask for collateral security or a guarantee, depending on the limit and your profile. Smaller limits for micro and small enterprises may be covered under government guarantee schemes, at the bank's discretion.
Documents Commonly Required
Business
- Business registration: GST, Udyam, trade licence, partnership deed or incorporation documents
- PAN of the business and KYC of proprietor, partners or directors
- Current account bank statements for recent months
Financials
- Audited or CA-certified financial statements for recent years
- ITRs for recent years
- Projected financials and CMA data
- Latest stock and debtors statement
- GST returns for recent months
Security
- Property documents, if collateral is offered
Document requirements can vary with the lender, product and your profile. We confirm the exact list before you visit. Never share OTPs or passwords with anyone.
Step-by-Step Process
Review your business
We look at your turnover, stock, debtors and current banking.
Prepare CMA and file
We prepare the CMA data and check your financials and documents.
Submit to the bank
Your proposal is submitted to a partner bank for appraisal.
Bank appraisal
The bank assesses the limit, inspects stock if needed and decides.
Sanction and setup
If sanctioned, the CC limit is set up in your account after documentation.
Estimated Timeline and Fees
Estimated timeline
Usually a few weeks after a complete proposal reaches the bank
Time depends on the bank's appraisal, any inspection, valuation of collateral and documentation.
Our service fee
Our fee for CMA data, the project report and application support is shared with you in writing before we begin.
Lender / third-party charges
Processing fee, interest, stock audit, valuation, stamp duty and other charges are set by the bank and payable as per its terms.
* Sanction, limit, interest rate, margin and security are decided by the bank under its credit policy. Timelines are indicative.
Common Mistakes to Avoid
- Not keeping stock and debtors records up to date
- Late submission of monthly stock statements to the bank
- Using the CC limit for long-term purchases like property
- Missing the yearly renewal date
Frequently Asked Questions
What is a CC loan?
A cash credit limit from a bank for working capital. You can draw and repay within the limit as needed and usually pay interest only on the amount used.
What is the difference between CC and OD?
A CC limit is generally secured by stock and receivables and is meant for working capital. An overdraft (OD) is often given against other security such as fixed deposits or property.
What is drawing power?
The amount you can actually draw at a time, worked out from your stock and debtors after the bank's margin, up to the sanctioned limit.
Is collateral needed?
It depends on the bank, the limit and your profile. Some smaller limits may be covered under government guarantee schemes at the bank's discretion.
Related Services
You May Also Need
Mudra Loan for Small Businesses
Help applying for a loan under the Pradhan Mantri Mudra Yojana (PMMY) for small shops, traders, service businesses and micro enterprises.
Accounts Management
Monthly or periodic accounting, reconciliations and management summaries for small businesses, startups and companies.
GST Return Filing
Preparation and filing of periodic GST returns, including GSTR-1 and GSTR-3B, with input tax credit reconciliation.
Talk to Our Team
Have a Question About CC Loan?
Call, WhatsApp or visit our office. We will explain what applies to you, the documents needed and all charges before you decide.
- Callback during office hours
- Written quote before any work begins
- No obligation to proceed
Speak to an expert
Tell us what you need. We will explain the documents, process and fees before you decide.
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