Cash Credit (CC) & Overdraft (OD) Finance
Structuring and enhancement of Working Capital Cash Credit (CC) and Overdraft (OD) loan facilities for manufacturers, traders, and contractors by B. Mallesh & Co., Chartered Accountants. Monthly Drawing Power (DP) stock statement certification and bank credit appraisal.
1. CC vs OD Working Capital Facilities
Cash Credit (CC) Facility
Hypothecation of stocks and book debts. Drawing Power (DP) calculated monthly after deducting bank margin (e.g. 25% on stock, 40% on debtors).
Overdraft (OD) Facility
Secured against immovable property (mortgage OD), fixed deposits, or financial securities. Interest is charged only on the daily utilized amount.
2. Mandatory Document Checklist
Required Records for CC/OD Sanction
- Audited Financial Statements (Last 3 Years)
- CA Certified CMA Data Report
- Monthly Stock & Book Debtors Statement
- Property Title Deed / Collateral Papers
3. Step-by-Step Credit Enhancement Timeline
Step 1: Working Capital Gap (WCG) Assessment
Calculating operating cycle days (Inventory turnover + Receivables period - Creditors period) and working capital gap.
Step 2: Bank Submission & Credit Enhancement Sanction
Submitting CMA Data and representing business during bank credit committee appraisal for limit enhancement.
Request Expert Consultation
Fill out your contact details to schedule a call back with CA B. Mallesh & Co.
100% Confidential • ICAI Practice Standards
Mancherial Office Contact
B. Mallesh & Co., Co. Laxmi Theater, Indra Nagar, Mancherial, Telangana - 504208