Profitable on paper. Short of cash every month.
Customers pay in 90 days, suppliers want 30, and the sanctioned limit assumes a cycle the business outgrew two years ago.
Where most of these mandates start.
Customers pay in 90 days, suppliers want 30, and the sanctioned limit assumes a cycle the business outgrew two years ago.
The account runs at the edge of drawing power. Every large order becomes a cash-flow decision rather than a commercial one.
How capital providers actually assess this.
Working-capital limits are assessed on the operating cycle — inventory holding, receivable days and creditor days — translated into a drawing-power calculation. If stock and debtor statements are late or inconsistent, available limit shrinks regardless of sanction.
Growing businesses need the limit resized as the cycle lengthens, and often need the mix rebalanced across fund-based, non-fund-based and receivable-backed lines rather than a single larger cash credit.
The parameters this is assessed against.
- Ticket size
- ₹5 Cr – ₹200 Cr
- Turnover
- ₹10 Cr and above
- Assessment
- Operating cycle and drawing-power based
- Security
- Hypothecation of stock and receivables, collateral as required
- Timeline
- 4–8 weeks for enhancement or takeover
What has to be on the table.
- Audited financials for the last three years plus latest provisional numbers
- GST returns and bank statements for the last 12 months
- Company profile, shareholding pattern and group structure
- KYC of the entity, promoters and directors
- CMA data — historical and projected fund flow, ratios and working-capital assessment
- Existing facility sanction letters, repayment track and security details
- Schedule of collateral with valuation and title documents
- Monthly stock and debtor statements for the last 12 months
- Creditor ageing and purchase-cycle detail
We understand the capital requirement, structure the transaction and take it to the right capital providers.
Understand the requirement
Rebuild the operating cycle from actual data to establish the real gap rather than the historical limit.
Structure the transaction
Resize fund and non-fund limits, add receivable or supply-chain lines where they fit, and correct the drawing-power computation.
Take it to the right capital providers
Lenders and structured credit providers with genuine appetite for the sector's working-capital profile.
Term sheets, negotiation and closure
We run competing term sheets side by side, negotiate pricing, covenants and security, manage diligence, and stay on the mandate through documentation and disbursement.
Answers before the first call.
How is a working-capital limit calculated?
Generally through the operating-cycle method — inventory plus receivables less creditors — cross-checked against turnover-based norms, with the drawable amount governed by monthly drawing-power statements.
Can a working-capital limit be taken over by another lender?
Yes. Takeover with enhancement is common where conduct has been regular and the account is standard; the process usually runs four to eight weeks.
What if receivables are concentrated with a few customers?
Concentration is manageable when contracts are strong — receivable-backed or supply-chain structures often work better than a plain cash-credit enhancement.
Share the requirement. We will tell you candidly whether it is fundable, and how.
Senior-led review under a mutual NCND. No retainer — engagement is success-linked. Prefer a detailed brief? Use the full funding requirement form.