Working capital that keeps pace with your business.

Lenders size working capital to how much money your business needs to run its operating cycle, from buying stock to collecting payment. For smaller limits, many lenders use a share of projected annual turnover. For larger limits, they assess your operating cycle using projected balance sheets and CMA data, and expect you to fund part of the need yourself (the margin). They also look at profitability, existing borrowings and security. Typical limits are [range], subject to lender policy. Our Business Loan Advisory team can prepare the projections lenders need.

Drawing power is the amount you can actually use from your working capital limit at any time. It is worked out from the stock and receivables you report each month, less the lender's margin and less any old or ineligible debtors. For example, if your limit is ₹1 crore but your current stock and eligible receivables, after margin, support only ₹80 lakh, you can draw only ₹80 lakh. Submitting accurate monthly statements on time keeps your drawing power up to date.

Yes. The Indian company, LLP or firm applies for the cash credit limit in its own name, based on its business and financials. NRI directors or partners are usually asked for personal guarantees, KYC documents and credit checks. Lenders may be more cautious if no promoter lives in India, and may ask for a resident director or authorised signatory to operate the account and submit monthly statements. Policies vary by lender and by the company's foreign shareholding.

Both let you draw as needed and pay interest only on what you use. Cash credit is secured mainly by stock and receivables, with drawing power recalculated each month, and suits trading and manufacturing businesses with regular inventory. An overdraft is usually secured by property, fixed deposits or other collateral, has a fixed limit without monthly stock statements, and suits service businesses. Overdrafts against property can cost less but tie up the property. Your advisor will compare the options lenders offer for your business.

Yes. Developers can get construction working capital or construction finance alongside, or as part of, project funding. It is usually linked to a specific RERA-registered project, released in stages as construction progresses, and repaid from customer collections through an escrow account. Lenders look at land title, approvals, sales so far, cost to complete and the developer's track record. Some developers also use bank guarantees and letters of credit for suppliers. It is lent to the developer entity, not to individuals.