Keep Your Business Running Smoothly
Working Capital/ CC/BG Finance
Every business requires steady cash flow to run day-to-day operations — from paying suppliers and salaries to managing inventory and meeting short-term obligations. When revenue timing doesn’t align with expenses, working capital finance fills the gap and keeps your business running smoothly.
What Is a Working Capital Finance?
Working capital finance refers to credit facilities that help businesses meet short-term operational needs such as purchasing raw materials, paying wages, covering rent, utility bills, and managing inventory and receivables. It’s not used for long-term investments but for keeping operations going without disruption.
Key Features & Benefits
Cash Credit (CC)
Cash Credit is a revolving business credit limit where funds are provided against inventory, receivables, or current assets. You can withdraw up to the sanctioned limit as needed and interest is charged only on the amount used.
Overdraft (OD) Facility
Overdraft lets you withdraw money from your current account up to a predetermined limit even if the balance is zero — interest is charged only on the amount overdrawn. This provides flexibility for irregular or unexpected expenses.
Bank Guarantee (BG)
A Bank Guarantee assures a third party (such as a supplier or client) that payment will be made even if you default. It strengthens business credibility and helps secure contracts or tenders without immediate cash outlay.
How These Facilities Help Your Business
Ensure Smooth Cash Flow: Cover urgent working capital needs without interrupting operations.
Manage Seasonal Fluctuations: Ideal for businesses with cyclical sales or uneven inflows.
Flexible Use: Funds can be used for inventory purchases, supplier payments, payroll, and other day-to-day needs.
Improve Credibility: Bank Guarantees help you bid for projects and fulfill contractual obligations.
Who Can Benefit?
Working capital and related credit facilities are ideal for:
✔ Small and medium enterprises (MSMEs)
✔ Manufacturers and distributors
✔ Traders and retailers
✔ Service firms with recurring operational costs
✔ Businesses facing temporary cash flow gaps
Required KYC Documents
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Identity Proof (PAN, Aadhaar)
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Business registration / GST details
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Bank statements (6–12 months)
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Financial statements (profit & loss, balance sheet)
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Proof of turnover / GST returns
(Exact requirements vary by lender.)
Why Choose JS Financial Solutions for Working Capital?
What is the difference between Cash Credit (CC) and Overdraft (OD)?
Cash Credit is generally provided against stock and receivables, mainly for business working capital needs. Overdraft is usually linked to a current account and may be secured against property or fixed deposits. In both cases, interest is charged only on the amount utilized.
How does a Bank Guarantee (BG) work?
A Bank Guarantee is a promise from the bank that it will pay a third party if the borrower fails to meet contractual obligations. It is commonly used for government tenders, supplier contracts, and project agreements.
What is the tenure of CC/OD facilities?
CC and OD facilities are usually sanctioned for 12 months and renewed annually based on business performance and financial documents.
Who is eligible for Working Capital finance?
Business owners, MSMEs, traders, manufacturers, contractors, and service providers with regular business operations, valid GST registration, and stable banking transactions are generally eligible.
How is the limit decided for CC/OD?
The sanctioned limit depends on your business turnover, stock value, receivables, financial statements, credit score, and banking history.
Is collateral required for CC/OD/BG?
Collateral requirements depend on the loan amount and lender policies. Some facilities may be secured against property, fixed deposits, or covered under government schemes like CGTMSE.
How long does approval take?
Approval timelines vary by bank but typically range between 7–15 working days, subject to complete documentation and eligibility.