Optimize enterprise liquidity, manage seasonal inventory demands, and balance payment cycles with flexible Cash Credit (CC) and Overdraft (OD) limits.
Even highly profitable businesses can face operational roadblocks due to locked-up cash in unpaid customer bills, slow-moving seasonal stock, or upfront supplier requirements. A standard term loan provides a fixed lump sum that may not fit your shifting monthly capital needs, resulting in unnecessary interest costs during low-utilization periods.
At MLG Finedge, we help structure flexible **Working Capital facilities**, including **Cash Credit (CC) limits** and **secured/unsecured Overdraft (OD) lines**. These facilities allow you to draw funds as needed and pay interest only on the exact amount used and the number of days utilized. We analyze your debtor-creditor cycles, stock turnovers, and bank profiles to secure maximum limits at the lowest possible margins from top banking institutions.
Utilizing cash credit lines offers significant financial flexibility:
Cash Credit is generally granted against the hypothecation of business stock and debtors (receivables). Overdraft is a limit granted against a secured asset, such as a property mortgage or fixed deposits.
Drawing Power is calculated monthly based on your paid stock and debtors list, minus your creditors. Banks require you to submit monthly stock statements to determine how much of your approved CC limit you can draw.
Yes, select private banks offer unsecured overdraft limits (up to ₹30 Lakhs to ₹50 Lakhs) for premium business profiles with strong, audited turnover history.