OD · Cash Credit · Bill Discounting · Invoice Financing

Working Capital Loan in Hyderabad —
Keep Your Business Liquid

Q: What collateral is required for working capital facilities?

Secured working capital (OD/CC against property) requires a registered mortgage on commercial or residential property. CC against inventory/debtors requires a hypothecation charge on the stock and book debts. CGTMSE-backed unsecured working capital facilities are available for MSMEs up to ₹5 Cr without collateral.

Q: Can I get working capital without ITR?

Some NBFCs and fintech lenders offer GST-based working capital loans where eligibility is assessed on GST turnover, bank statement cash flows, and receivables — without requiring ITR. These facilities are typically smaller (up to ₹1 Cr) and at slightly higher rates. Filing ITR significantly improves both eligibility and rate.

Q: What is Bill Discounting and how is it different from a CC limit?

Bill Discounting is the purchase of unpaid invoices (bills receivable) by a bank at a discount. You receive immediate funds against your debtors' invoices rather than waiting for the payment due date. A CC limit is an open revolving credit line. Bill Discounting is self-liquidating — it gets repaid when your customer pays — making it lower risk for lenders.

Q: What is Invoice Financing and who can use it?

Invoice Financing (also called Invoice Discounting or Factoring) allows businesses to unlock cash tied up in outstanding invoices from corporate buyers. Eligible businesses are those with regular B2B sales to creditworthy companies. This is widely used by vendors supplying to large corporates, government agencies, and anchor companies.

Q: What is the maximum working capital limit I can get?

Working capital limits are typically assessed as a percentage of annual turnover — usually 20–25% of the gross annual sales. For property-backed OD, the limit can be up to 60–70% of the property's distress value. Invoice financing limits are tied to the invoice amount and debtor credit quality.

Seasonal demand, delayed receivables, bulk inventory purchases — every growing business needs a reliable credit line. Finvastra structures OD, Cash Credit, Bill Discounting, and Invoice Financing facilities up to ₹10 Crore from banks and NBFCs in Hyderabad. Pay interest only on what you use.

Apply for Working Capital Explore Facility Types

Up to ₹10 Cr

Credit Limit

9% – 16%

Interest Rate p.a.

Revolving

Repay & Redraw Anytime

5 – 7 Days

Sanction Timeline

Working Capital Finance

What is a Working Capital Facility?

Working capital is the lifeblood of any operating business — the funds needed to pay suppliers, manage inventory, meet payroll, and bridge the gap between sales and collections. Unlike term loans which are disbursed once and repaid in fixed EMIs, working capital facilities are revolving credit lines: draw funds as needed, repay when cash flows in, and draw again.

The key advantage: you pay interest only on the outstanding balance on any given day — not on the entire sanctioned limit. A ₹1 Crore OD limit sitting largely unutilised costs you almost nothing.

Four Types of Working Capital Facilities

Overdraft (OD)

Linked to your current account. Draw beyond your balance up to the sanctioned limit. Secured against FD, property, or receivables. Best for service businesses and professionals.

Cash Credit (CC)

Dedicated facility assessed against inventory and debtors. A charge is created on stock and book debts. Ideal for traders, manufacturers, and distributors.

Bill Discounting

Convert unpaid invoices to immediate cash. The bank purchases your bills receivable at a discount. Self-liquidating — repaid when your customer pays.

Invoice Financing

Unlock cash tied in outstanding invoices from large corporate buyers. Widely used by vendors to anchor companies, PSUs, and government bodies.

Who Can Apply

Working Capital Eligibility in Hyderabad

Business Vintage

2+ Years

Min Annual Turnover

₹50 L+

ITR Filed

Last 2 Years

CIBIL (Business)

700+

Businesses That Typically Qualify

Traders, manufacturers, distributors, exporters, contractors, IT service firms, healthcare providers, and any business with regular B2B billing cycles. CGTMSE-backed facilities (without collateral) are available for MSMEs up to ₹5 Crore.

Working Capital Limit Assessment

Banks typically sanction a CC/OD limit at 20–25% of annual gross turnover, subject to a drawing power assessed monthly against your current stock and debtor levels. For property-backed OD, the limit can be 60–70% of the property value. Finvastra helps prepare the Credit Information Memorandum (CIM) that presents your business in the best light to lenders.

Documents Required for Working Capital

Business KYC — PAN, GST certificate, trade licence, incorporation documents
Promoter KYC — PAN, Aadhaar, address proof
Last 2 years ITR with profit & loss and balance sheet
Last 12 months bank statements (all accounts)
Latest GST returns (last 6–12 months)
Stock statement and debtors/creditors list (for CC)
Property documents (for OD against property)

Business managers discussing working capital strategy

Real Example

₹80 Lakh CC Limit — 30 Days from Application

A Hyderabad-based textile trading firm with ₹4.5 Cr annual turnover was struggling with 60-day payment cycles from retail buyers. Their existing CC limit of ₹30 Lakh was insufficient to fund bulk orders.

Finvastra structured a ₹80 Lakh CC facility against book debts at 11.5% p.a. through a nationalised bank. Net interest cost on average utilisation of ₹50 Lakh: approximately ₹4,792/day — versus the 2% monthly cost of informal credit they were using.

Scenario is representative. Limits and rates depend on business financials, collateral, and lender policies at the time of application.

Free Tool

Monthly Interest Cost Calculator

Estimate your monthly interest cost on an OD or CC facility. Interest is charged only on the utilised amount.

Sanctioned Limit ₹50,00,000

₹5L₹10Cr

Average Utilisation 60%

10%100%

Interest Rate (p.a.) 11.50%

9%18%

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Monthly Interest Cost

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Avg. Amount Used

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Annual Interest Cost

Interest is calculated on daily outstanding balance. Shown here as monthly average.

Clients Served

Across Hyderabad & Telangana

₹0Cr+

Loans Disbursed

Home, Business & MSME

Lender Partners

Banks, NBFCs & Fintechs

Client Satisfaction

Based on client feedback

Got Questions?

Working Capital FAQs

What is the difference between an Overdraft (OD) and Cash Credit (CC)?

Both are revolving credit facilities where you pay interest only on the utilised amount. Overdraft is typically linked to a current account and secured against FDs, property, or receivables. Cash Credit is a dedicated working capital facility sanctioned against inventory and book debts, commonly used by traders and manufacturers.

What is the minimum business vintage required?

Most banks and NBFCs require a minimum business vintage of 2–3 years with audited financials. Some NBFCs and fintech lenders offer working capital facilities to businesses with 12–18 months of operations if GST turnover and bank statement cash flows are strong.

How is interest calculated on an OD or Cash Credit?

Interest is charged only on the outstanding balance utilised, calculated on a daily basis. For example, if you have a ₹50 Lakh CC limit at 12% p.a. and utilise only ₹20 Lakh for 30 days, interest = ₹20L × 12% ÷ 365 × 30 = ₹19,726. The limit remains available to draw again once repaid.

What collateral is required for working capital facilities?

Secured working capital (OD against property) requires a registered mortgage. CC against inventory/debtors requires a hypothecation charge on stock and book debts. CGTMSE-backed unsecured working capital facilities are available for MSMEs up to ₹5 Cr without collateral.

Can I get working capital without ITR?

Some NBFCs offer GST-based working capital loans assessed on turnover, bank statements, and receivables without requiring ITR. These are typically smaller (up to ₹1 Cr) and at slightly higher rates. Filing ITR significantly improves both eligibility and rate.

What is Bill Discounting and how is it different from a CC limit?

Bill Discounting is the purchase of unpaid invoices by a bank at a discount — you receive immediate funds against your customers' invoices. A CC limit is an open revolving credit line. Bill Discounting is self-liquidating — it gets repaid when your customer pays — making it lower risk for lenders.

What is Invoice Financing and who can use it?

Invoice Financing allows businesses to unlock cash tied in outstanding invoices from corporate buyers. Eligible businesses are those with regular B2B sales to creditworthy companies. It is widely used by vendors supplying to large corporates, government agencies, and anchor companies.

How long does it take to get a working capital limit sanctioned?

Bank CC/OD limits typically take 3–6 weeks including site inspection and credit committee approval. NBFC working capital loans can be approved in 5–10 working days with complete documents. Finvastra pre-screens your profile and routes to the fastest lender for your situation.

What is the maximum working capital limit I can get?

Working capital limits are typically assessed at 20–25% of annual gross turnover. For property-backed OD, the limit can be up to 60–70% of the property's distress value. Invoice financing limits are tied to the invoice amount and debtor credit quality.

How often does the CC/OD limit get reviewed?

CC and OD limits are typically sanctioned for 12 months and renewed annually based on updated financials. Consistent utilisation and timely interest payments help secure limit enhancements at renewal.

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Final loan approval is subject to lender eligibility, documentation, credit assessment, and applicable policy.

Working Capital Loan in Hyderabad —Keep Your Business Liquid