Cash Credit

Cash credit limit is a running loan facility that a company can achieve by hypothecation of goods inventory. The inventory present in factory stores is submitted as security to the bank. Bank periodically assesses the value of secured inventory stock and checks stock statement. benefits: cc limit loan up to 20 % of estimated sales revenue, cc hypothecation loan: 25% of stocks, 50% of book debts interest rates may vary from 3% to 7%. Repayment tenure may vary from 2 to 5 years.