Working Capital
Plan your working capital cycle and arrange the right CC/OD limits for day-to-day operations.
Cash credit (CC), overdrafts (OD), invoice discounting, and bill purchase facilities to stabilize operations.
- Manufacturing units with long production cycles
- Traders and wholesale merchants
- Service providers with delayed client disbursements
Common challenges
- Cash flow mismatch caused by extended debtor payment cycles and upfront supplier advances.
- Drawing power (DP) issues due to old or obsolete stock and non-moving debtors.
- Under-assessed bank limits under Nayak Committee or Turnover method.
How we help
- Working capital cycle calculation (Debtor Days + Inventory Days - Creditor Days).
- Maximum Permissible Bank Finance (MPBF) modeling to maximize allowable bank limits.
- Assisting with stock audit readiness, DP calculation formats, and monthly reporting compliance.
Our process
- 1
Cycle Analysis
Map debtor, inventory, and creditor aging patterns.
- 2
Limit Computation
Prepare MPBF calculations (Turnover vs Cash Budget method).
- 3
Bank Negotiation
Assist in presenting rationale for required limits and competitive interest margins.
Documents usually required
0 of 4 readyTick what you already have. Lenders may ask for more depending on your case.
Frequently asked questions
Can service MSMEs obtain working capital without physical stock?
Yes, through book-debt based Cash Credit, Overdraft against receivables, or specialized service enterprise financing schemes.
We do not guarantee loan sanctions or subsidy approvals. Lending and subsidy decisions are made by banks, NBFCs and government departments after their own appraisal.