Working Capital Finance (CC/OD, PC/PCFC, Post‑Shipment)
Flexible credit for inventory, receivables, and exports with turnover‑based assessment and drawing power control
Quick Stats
About Working Capital
Working capital finance provides revolving credit to fund inventory, receivables, and operating cycles through Cash Credit/Overdraft limits or export‑specific products like Packing Credit (PC/PCFC) and Post‑Shipment finance. Limits are assessed using turnover/cycle methods and controlled through Drawing Power. [18][20]
For MSMEs up to ₹5 crore limits, banks commonly use turnover‑based assessment per the Nayak Committee; larger limits follow detailed CMA/MPBF and cash budget methods depending on industry. Exporters can access concessional pre‑ and post‑shipment credit, including foreign currency (PCFC). [9][20]
DP is recalculated periodically from stock and receivables statements to set drawable amounts, ensuring borrowing remains backed by current assets; older statements can render exposure irregular under prudential norms. [10][19]
CC/OD Limits
Revolving working capital via Cash Credit/Overdraft with DP‑linked drawing and annual renewal.
Packing Credit
Pre‑shipment finance to purchase/process/pack export goods against orders/LCs; INR or PCFC in foreign currency.
Post‑Shipment
Finance against export bills post‑dispatch until realization/acceptance; liquidates PC on submission.
DP Control
DP computed from eligible stock and book debts after margins; borrowing limited to lower of DP or sanction.
Success Stories
"Turnover‑based CC limit with monthly DP helped manage seasonal stock and receivables smoothly."
Alpha Garments
Textile Manufacturing
Funded: ₹2.5 Crore
"PCFC pre‑shipment and post‑shipment bill discounting reduced interest burden and tightened cash cycles."
BlueWave Exports
Engineering Goods
Funded: ₹1.8 Crore
"Annual renewal with stock/book audits kept limits healthy and enabled rapid store expansion."
FreshKart
FMCG Distribution
Funded: ₹75 Lakhs
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