Cash Credit Facility

A Cash Credit (CC) facility is a short-term financing option designed to support businesses in meeting their working capital needs. Simply put, cash credit is a short-term loan offered by a bank, allowing a business to withdraw funds from a bank account even without maintaining a credit balance. However, withdrawals are capped at a predetermined borrowing limit.

Cash credit is a vital working capital financing tool, enabling businesses to address liquidity issues with ease. Companies can make multiple withdrawals within the borrowing limit, and depositing surplus cash back into the account helps reduce the interest burden. Interest is charged only on the utilized amount, calculated daily, and billed monthly—making it a cost-effective financing option.

Typically secured against stocks, fixed assets, or property as collateral, a cash credit facility offers flexibility and security. It is usually provided for a maximum period of 12 months, after which the borrowing limit is re-evaluated to align with the company’s needs.

Why Choose Vrddhi Financial Services for Cash Credit?

At Vrddhi Financial Services, we understand the importance of maintaining seamless business operations. Our expert advisors guide you through the process of acquiring a cash credit facility that perfectly aligns with your requirements. Reach out to us today to explore how we can assist your business in managing its working capital effectively!