Working Capital Facilities

Additional Details

Working Capital Facilities also called Cash Credits is a type of facility that is used for withdrawing amount from business account even though the account does not have enough credit balance. Here, the amount limit which can be withdrawn is sanctioned by bank based on business cycle of client as well as working capital gap and drawing power of clients. Here, the drawing power is determined upon understanding the stock as well as book debts statements that are submitted by borrowers at monthly intervals against security through hypothecation of :

    Stock of commodities
    Book debts

Here, the excess cash withdrawal facility is made on demand from customer where they have to pay interest on excess amount withdrawn. Further, the Cash Credit facility is also useful for those businesses where cash payment like wages, transportation need to be made and receivables are not realized in time.

HIBL Expertise :
HIBL holds expertise in providing customers with Working Capital Finance that act as loans designed towards meeting cash flow needs without much hassles. The expertise of the company lies in:

    Setting up working capital facilities for WCDL, Cash credit, LCs, Guarantees, Export Credit for select dealers of Corporate where facilities are set up based on :
        Analysis of financials
        Need for funding
        Regulatory guidelines
        Security
    With a minimum margin of 25%, HIBL also provides funding against :
        Hypothecation of Stocks
        Book Debts
    Documentation process :
        Following steps are followed for completing application process.
        Application form accepted and acknowledged
        Personal interview /discussions held with customers by bank officials
        Bank's Field Investigation team visits business place of applicants
        Bank verifying track records of applicants with common information sharing bureau (CIBIL)
        In fresh projects, bank analyses back ground of applicants and technical feasibility/financial viability of projects based on different parameters and existing market conditions
        Depending on size of projects, file is put up for sanction to appropriate level of authority
    Sanction and disbursement :
        On sanction, sanction letter issued specifying terms and conditions for disbursement of loans
        Acceptance to terms of sanction taken from Applicants
        Processing charges as specified by banks paid to proceed further with disbursement procedure
        Documentation procedure takes place
        All necessary documents as specified by legal dept., according to terms of sanction of loan of bank are executed
        Disbursement of loan takes place after Legal Dept. Certifies Correctness of execution documents