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Working Capital

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Why do businesses need Funds?

  • Growth of Business (like Purchase of Inventory)
  • Short Term Business Expenses
  • Purchase of Property or Equipments
  • Seasonal Demand
  • Blockage of Funds
  • Emergency Expenses

When should we borrow?

Simply, When potential Return on Investment outweigh Cost of Debt. Eg. A trader who would like to purchase in bulk but due to insufficient capital could not, would lose to its competitor who purchased in bulk and availed bulk discount and effectively lowered its product cost or increased its profit margin.

So, if return from deployment of loan is higher than cost of loan, it’s preferable to take loan.

We all know, Funds comes at a cost and for running a profitable business every single rupee has value. So here our role comes, We arrange funds for our customers at lowest possible interest rates (%) by innovative products and exploring our multiple Tieups with Banks, NBFCs and various Financial Institutions. Our advisors have more than 30 years of experience in financial industry, which helps us to provide best financial solutions to our customers. We don’t sell products which suits us, instead we sell products which suits our customers.

Do you know, just by REDUCTION in Rate of Interest by 1%, You can SAVE more than Rs. 32 lakhs (Rs. 5 crore Term Loan @ 10 years)

Choose the product which best suits you or kindly call us. We are happy to advise you.

Cash Credit/Overdraft Limit

Cash Credit

  • For meeting day to day fund requirements like purchase of raw material or other short term expenses.
  • Short term source of funding (renewed every year)
  • Given against collateral security (immovable property) and hypothecation of assets.


  • Similar to Cash Credit Facility.
  • However less documentation required but marginally higher interest rate as compared to Cash Credit Facility
  • Also Loan to Collateral Ratio is low i.e. higher value of collateral required for same quantum of loan as compared to Cash Credit.

Working Capital Demand Loan

  • Short Term Loan ranging from period of 2-6 months.
  • Generally carved out of Cash Credit or Overdraft limits as sub-limit.
  • Bullet repayment of loan.
  • Cheaper than Cash Credit/Overdraft Limit.

Exporter’s Credit (Pre Shipment/Post Shipment)

  • Export Packing Credit (EPC) or Packing Credit in Foreign Currency (PCFC) – Facility provided to exporters for purchase, manufacturing or packing of goods prior to shipment.
  • Foreign Bill Discounting (FBD)/Foreign Bill Negotiation(FBN) is facility offered to exporters to help them finance export sales receivables for the time lag between shipment of goods and date of realization of export proceeds.
  • Low interest rate as subvention is available as well as LIBOR linked loans. Rate charged is very less as compared to Cash Credit.
  • This facility is also backed by Collateral and Charge on Assets.
  • Facility can be hedged to mitigate currency fluctuation risk, however hedging cost is high.

Importers Credit (Buyers Credit)

  • The cheapest source of finance for importers.
  • Facility availed by Indian importer for payment of imports
  • Funds arranged on behalf of importer through an overseas bank. Overseas branch funds Indian bank vostro account and accordingly Indian bank uses the funds and make payment to exporter on behalf of Indian importer.
  • Indian importer pays to Indian bank as per loan agreement
  • Cheaper funds as linked to LIBOR rates as against local sources of funding which are costly.

Non Fund Based Limits (Letter of Credit/Bank Guarantees)

Letter of Credit(LC)

  • LC is a written commitment document issued by bank to assure payment to seller, on fulfillment of conditions mentioned in LC.
  • LCs is frequently used in international transactions like import of material or capital goods as compared with bank guarantees.
  • Generally two types of LCs are used- Sight LC (paid at the time of presentation) and Usance LC (paid as per approved usance period like 30 days, 60 days, 90 days etc).

Bank Guarantee (BG)

  • BG is a document where issuing bank stands as a Guarantor to beneficiary.
  • Usually BG is for a specified amount, which is generally a percentage of contract value.
  • BGs can be Performance or Financial Bank Guarantees.