One working capital limit.Not six unsecured loans.

A working capital loan for business is generally a revolving cash credit limit or overdraft used for inventory, receivables and routine operating expenses. Unlike a term business loan, it does not require the full principal to be repaid through fixed monthly EMIs. Interest is normally charged on the amount used, and the facility is reviewed annually.

Banks commonly begin with methods linked to projected annual turnover, operating cycle, inventory and receivable levels. An indicative range may be 25 to 30 percent of turnover, but this is not automatic. Existing borrowing, profitability, banking conduct, promoter contribution, customer concentration and the bank's credit policy all influence the final assessed limit.

Interest rates can start from 8.25% for eligible profiles, but this is not guaranteed. The final rate is decided by the lender and depends on the borrower profile, applicable benchmark, bank assessment, credit history, collateral or security, facility structure and lender credit policy.

Where eligible fixed-EMI business debt is restructured into an appropriate working-capital facility, monthly debt-servicing pressure may reduce by up to 50% in some cases. Actual reduction depends on existing loans, outstanding amounts, interest rates, utilisation, sanctioned facility and bank terms. The calculator is illustrative only and does not predict a saving.

Eligible high-cost business debt may be restructured or taken over as debt consolidation where it funded genuine business requirements and the company has suitable turnover and repayment conduct. The lender verifies end use, liabilities and the proposed structure; a sanction is not assured.

A cash credit limit or OD limit for business is revolving. The company may draw, repay and draw again within the sanctioned limit for permitted business purposes. Interest is generally calculated on daily utilisation. Account turnover, stock statements and routing conditions must be maintained, and the facility cannot be used for personal expenses or unauthorised long term investments.

It can increase, but enhancement is not automatic. At annual review, the bank examines audited performance, projected sales, utilisation, account conduct, inventory and receivable levels, compliance and credit history. If turnover and operating need have grown with satisfactory conduct, the company may request an enhanced limit supported by a revised assessment and financial projections.

Primary security usually includes current assets such as stock and receivables. Depending on the amount and profile, a bank may also seek collateral property and promoter guarantees. Eligible micro and small enterprises may be considered under a CGTMSE loan structure without traditional collateral, subject entirely to scheme rules, lender policy and the strength of the proposal.

Typical documents include KYC and constitution records, GST returns, income tax returns, audited financial statements, bank statements, existing sanction letters, debt schedules, stock and receivable information, property papers where applicable, and projections. The exact list varies by constitution, facility and bank. We issue a single case specific checklist after the initial profile discussion.

AdvanceCred aims to complete an initial assessment or proposal-processing review within up to 3 working days after receiving complete information and required documents. This is not a bank sanction or disbursement commitment. Bank sanction and disbursement timelines vary by lender and case.

A complete and straightforward proposal may move from submission to sanction in several weeks. Timing depends on document readiness, valuation, legal review, credit queries, sanction authority and the bank's internal workload. We reduce avoidable delay by checking the file before submission, answering queries coherently and maintaining one tracked list of pending items.

Invoice funding and bill discounting can provide short-term finance against eligible receivables or trade bills. Lease rental discounting is structured against eligible rental income from leased commercial or property assets. Availability, advance rates, security and terms depend on the underlying transaction or asset and lender policy.

No. AdvanceCred does not collect any advance fee from applicants. Banks may separately charge their disclosed processing, valuation, legal, documentation or statutory costs under the sanction process. We explain known institutional charges before you proceed. A sanction always remains at the lender's sole discretion and cannot be guaranteed by any advisor or channel partner.