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+91 80062 81111 info@sourcingindia.bizWorking Capital Finance
Cash credit, overdraft and cycle-matched limits for day-to-day business needs.
Limits Sized To Your Real Operating Cycle
Working capital supports the day-to-day running of a business — paying suppliers, carrying inventory and waiting for customers to pay. An under-sized limit is one of the most common funding problems we see, and it is rarely dramatic: the strain shows up as delayed supplier payments, deferred purchases and declined orders.
The right number comes from the operating cycle, not from turnover. Inventory days plus receivable days, minus payable days, applied to operating costs, shows how much cash is tied up at any moment. Two businesses with identical revenue can need very different limits. We help size, structure and present the requirement — and, where it is the real issue, improve the cycle itself. Read our insight on why working capital limits are almost always sized wrong.
Accepting a smaller limit to avoid the cost of a larger facility often costs more in the opportunities it blocks.
Working Capital Facilities
01
Cash credit (CC) limits
Revolving limits secured against stock and receivables, drawn as the cycle requires.
02
Overdraft (OD) facilities
Flexible limits, often secured against property or deposits, for short-term needs.
03
Working capital demand loans
Short-tenor loans carved out of a limit for specific, predictable requirements.
04
Packing credit & export finance
Pre- and post-shipment finance for exporters, linked to orders and shipments.
06
LC & bank guarantees
Non-fund limits that support purchases and contract performance without using cash.
A Request That Holds Up
- Calculate the actual cycle from at least twelve months of data
- Show the peak requirement, not just the average
- Model growth — expansion needs working capital before revenue arrives
- Explain receivables: ageing, concentration and collection history
- Reconcile the cycle with the financial statements
- Choose revolving structures over fixed term repayments for cycle needs
How Sourcing India Assists
- 01
Cycle analysis
Inventory, receivable and payable days measured from your own data, including seasonality.
- 02
Limit sizing
The peak requirement and growth headroom translated into a defensible number.
- 03
Structure selection
CC, OD, WCDL, packing credit, discounting or a combination.
- 04
Drawing power & stock statements
Preparing the stock and debtor statements lenders use to set drawing power.
- 05
Lender approach
Banks and NBFCs that fund your sector, presented with a complete file.
- 06
Renewal & enhancement
Annual renewals and limit enhancements prepared before the cycle outgrows the facility.
Key Considerations
Turnover-based requests
A percentage of revenue is a poor estimate of the real cycle.
Outdated limits
Facilities set years ago often no longer match a grown business.
Averaged seasonality
A limit that works on average can fail at peak demand.
Moderated requests
Asking for less to improve approval odds usually backfires.
Term debt for cycle needs
Fixed repayments can force cash out exactly when the cycle is consuming it.
The operational half
Collections, invoicing discipline and supplier terms can shrink the requirement itself.
Sourcing India provides advisory and coordination services only. We do not lend, and every sanction, investment or approval decision belongs to the lender, investor or authority concerned. Nothing on this page is a recommendation to borrow or invest.
Questions We Are Asked About Working Capital Finance
Lenders typically assess the operating cycle — inventory and receivables less payables — together with projected sales and the margin the business brings in. A well-prepared request demonstrates the cycle from your own data rather than asserting a figure.
Cash credit is usually secured against stock and receivables, with drawing power set by periodic stock statements. An overdraft is often secured against property, deposits or other collateral. Both are revolving limits.
Often, yes — when growth, a longer cycle or new orders justify it. The case for enhancement is strongest when it is prepared before the limit becomes a constraint, not after.
No. Sourcing India is an advisory firm. We size, structure and present the requirement and coordinate with banks and NBFCs; sanction decisions rest with them.
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ExploreConsidering Working Capital Finance?
Send us the requirement and the current position. We will tell you what looks fundable, what needs work first, and whether this is even the right route.