Cash Credit Facility - Creditcares

Cash Credit Facility – Funding for Daily Operations

Get a credit limit against your stock and unpaid invoices. Manage your daily business costs easily and pay interest only on the money you actually use.

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Fast Disbursal in 5–7 Days

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50,000+ Happy Borrowers

Key Benefits of Cash Credit with Creditcares

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About the Loan

What is a Cash Credit Facility?

A cash credit facility is a short-term borrowing option that helps businesses manage their daily cash flow. Lenders give you a credit limit based on the value of your current business assets, mainly your inventory (stock) and unpaid customer invoices (receivables).

You can withdraw money as needed up to this approved limit. You only pay interest on the money you take out, not on the full limit. When your customers pay you or you sell your stock, you deposit the money back into the account to lower your borrowed balance and your interest cost.

At Creditcares, founded in 2012, we help you find the right cash credit limit. We compare offers from 50+ banks and NBFCs to get you a fair interest rate without confusing terms. We guide you through the process of pledging your current assets to secure the funds you need.

Limit Against Inventory (Stock)

Limit Against Receivables (Book Debts)

Borrow money based on the raw materials and finished goods sitting in your warehouse. The bank evaluates your stock regularly to adjust the amount of money you can withdraw at any given time.

Borrow money against the unpaid invoices from your customers. This helps you get cash immediately to pay your own bills without waiting weeks or months for your clients to clear their dues.

Who can apply

Who Can Apply for a Cash Credit Facility?

We help trading and manufacturing businesses keep their supply chains moving. If your money gets tied up in stock or pending invoices, a cash credit limit provides the relief you need.

Manufacturers & Industrial Units

Buy raw materials and pay workers without waiting for your finished goods to sell.

Retailers & Wholesalers

Keep your shelves stocked and pay suppliers on time during busy shopping seasons.

Distributors & Traders

Manage the cash gap between buying stock from manufacturers and getting paid by local retailers.

Exporters & Importers

Fund your domestic operations while waiting for international shipments and payments to clear.

Service Providers with Inventory:

Businesses that need to hold spare parts or physical materials to deliver their services.

Cash Credit Eligibility Criteria

To qualify, lenders look at your trading history and the quality of your stock. You must show active business operations and a steady flow of sales to get a good credit limit.

Documents Required for Cash Credit

Organizing your paperwork helps speed up the bank’s assessment. You will need to provide standard business proofs along with detailed reports of your current assets.

Identity & Address Proof (any one each):

• Aadhaar Card, PAN Card, Passport, Voter ID, Driving Licence

Business Registration Proof

GST certificate, Trade Licence, or Udyam Registration.

Financial Documents

Past 3 years of audited balance sheets and Income Tax Returns (ITR).

Stock & Debtors Statement

Detailed lists of your current warehouse inventory and unpaid customer invoices.

Bank Statements

Last 12 months’ statements of your main current account.

How to Get Cash Credit in 6 Simple Steps

Our process is clear and direct, helping you secure your limit without wasting time on bank follow-ups. We streamline the application process, offering a transparent and efficient way to access the cash credit facility you need. From initial consultation to final approval, we guide you through every step, saving you valuable time and effort.

Step 1 — Initial Discussion

Talk to our advisors about your business turnover, stock value, and cash flow needs.

Step 2 — Document Collection

We help you gather your monthly stock statements, financial reports, and business proofs.

Step 3 — Get Free Loan Comparison

We check your profile with 50+ lenders and provide a clear comparison of interest rates and processing fees.

Step 4 — Application Submission

Pick the offer you want. We submit your file and handle all communications with the chosen bank.

Step 5 — Bank Assessment

The lender reviews your financial documents and may visit your warehouse or shop to verify the physical stock.

Step 6 — Limit Activation

Once approved, the bank sets the limit on your account. You can withdraw funds to manage your daily expenses immediately.

Our Trusted Bank & NBFC Partners

We work with India's most reputed financial institutions to bring you fair cash credit deals:

State Bank of india

Bank of Baroda

Punjab National Bank

Canara Bank

Union Bank of India

Bank of India

HDFC Bank

ICICI Bank

Axis Bank

Kotak Mahindra Bank

IndusInd Bank

Yes Bank

Bajaj Finserv

LIC Housing Finance

Tata Capital

Piramal Finance

Muthoot Finance

Aditya Birla Capital

Disclaimer: Whether you want an SBI cash credit limit or a private bank facility with quick processing, Creditcares gives you a single place to compare and apply. Our partnerships mean quick processing and fair interest rates for your business.

What Can You Use Cash Credit For?

A cash credit facility provides the daily funds needed to keep your business running smoothly without liquidating your long-term assets.

Buying Raw Materials

Get the funds needed to purchase materials to keep your production line active.

Buying Heavy Maintaining Inventory

Stock up on goods before peak seasons without locking up all your cash.

Paying Suppliers

Clear your vendor bills on time to maintain good relationships and get cash discounts.

Managing Overhead Costs

Pay rent, utility bills, and daily operating expenses without delay.

Handling Wage Payments

Pay your employees on time even if your customer payments are late.

Bridging Cash Gaps

Cover the waiting period between sending an invoice to a client and receiving the money.

Frequently Asked Questions — Cash Credit Facility

Find clear answers to common questions about how a cash credit facility works. This section explains interest calculations, stock statements, and the differences between cash credit and overdraft. These details will help you understand how this facility supports your daily business operations.

Q1. What is the difference between Cash Credit and Overdraft?

A: Cash credit is usually given against your business inventory and unpaid invoices to fund daily trading. An overdraft is often given against a fixed deposit, property, or just your general banking history.

Q2. How is interest charged on a cash credit account?

A: Interest is charged only on the daily closing balance of the money you have actually withdrawn, not on the total approved limit.

Q3. Do I need to submit stock statements regularly?

A: Yes. Banks usually require you to submit a statement of your stock and unpaid invoices every month. This helps them adjust how much money you are allowed to withdraw.

Q4. What is 'drawing power' in cash credit?

A: The bank approves a maximum limit, but your 'drawing power' is the actual amount you can withdraw right now. This number changes based on the current value of your stock and receivables submitted in your monthly statement.

Q5. Is a cash credit facility a long-term loan?

A: No, it is a short-term borrowing option meant for daily working capital. The limit is typically sanctioned for 12 months and renewed every year based on your business performance.

Q6. What happens if the value of my stock drops?

A: If your inventory value goes down, the bank may reduce your drawing power. You might need to deposit money into the account to bring your outstanding balance below the newly adjusted limit.