Working Capital Facility

  • Working Capital loans are designed to ease the liquidity position of the client
  • It is used to meet a firms operating expenses, purchasing inventory, receivables financing, etc
  • Working capital finance is offered by way of cash credit, overdraft LC, bank guarantees or working capital loans suitably structured to your needs and your risk profile
  • LoanXpress helps you in obtaining Working Capital loans by using its strong network of banks & NBFCs
  • At LoanXpress we analyse the dynamics of your business & accordingly present the same to various banks & Financial Institutions


  • Eligible companies can avail of short term loans like cash credit, other lines of credit, overdraft account etc in a short period of time.
  • Working Capital financing is generally flexible with varying interest rates & repayment terms
  • This flexibility can help companies with seasonal or periodic fluctuations smooth out cash flows.
  • It provides a steady stream of capital to cover gaps created by growth-related expenses.


  • Interest rates for working capital usually vary in the range of 12.5% - 15%

Working Capital Cycle


  • Cash Credit/Overdraft Facility

This is the primary method in which Banks lend money. It is an arrangement under which a customer of a bank or financial institution is allowed an advance up to a certain limit. Cash credit arrangements are usually made against the security of commodities hypothecated or pledged with the bank. The entire amount of working capital required is not funded by the bank, some small amount will have to be funded by the businessman and the balance amount will be funded by a bank as a loan.


  • Cash Credit/Overdraft Facility

A bank guarantee is an assurance from the bank or any lending institution to cover the loss if the borrower defaults on the loan. The quantum of guarantee is called the "guarantee amount" The guarantee is issued upon receipt of a request from 'applicant' for some purpose/transaction in favour of a 'Beneficiary'. The 'issuing bank' will pay the guarantee amount to the 'beneficiary' of the guarantee upon receipt of the 'claim' from the beneficiary. This results in 'invocation' of the Guarantee.


  • Cash Credit/Overdraft Facility

A letter of credit is a promise to pay. It is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.


  • Cash Credit/Overdraft Facility

Under this type of lending, Bank takes the bill drawn by borrower on his (borrower's) customer and pays him immediately deducting some amount as discount/commission. The Bank then presents the Bill to the borrower's customer on the due date of the Bill and collects the total amount The buyers and sellers of goods have conflicting objectives. The seller wishes to get paid immediately and the buyer wants as longer credit period as possible. Invoice discounting is the solution to the problem which creates a win-win situation.

Proof of Identity

  • Pan Card

Proof of Address

  • Electricity bill
  • Telephone bill
  • Latest property tax receipt
  • Passport
  • Voter id card
  • Company Pan card
  • Proof Of Address - Registered
  • Proof Of Address - Corporate
  • Proof Of Address - Factory/Unit/Plant/Shop

In case of Company

  • Articles of Association
  • Memorandum of Association
  • Certificate of Incorporation

In case of Partnership

  • Certification of registration of firm with the registrar of firms and societies

In case of MSME unit

  • Certificate of registration with District Industry centre (Compulsory for medium MSME)

In case of SSI unit

  • SSI registration number/SIA SEK No.
  • Last 3 years audit report & audited financials
  • Debtors &Creditors
  • Debtors ageing list
  • CMA data for working capital loan of Rs. 100 lakhs & more
  • Cash flow statement
  • Business Continuity proof - 3 years ITR
  • Last 6 months bank statement
  • Loan statement with sanction letter
  • Promoters/Directors Net Worth Statement on company letterhead
  • 3 year projections
  • Shareholding pattern on Company letterhead
  • Credit rating report - ( If credit rating is done)