Working Capital Loan
Bridge the gap between receivables and payables. We structure working capital lines — cash credit, overdraft, bill discounting, invoice factoring — matched to your business cycle, sector, and credit profile.
Why choose Openedze
What you get when our experts handle this end-to-end
Smooth out cash flow
Working capital lines bridge timing gaps between supplier payments and customer collections — keeping operations running smoothly.
Scale without dilution
Fund inventory, receivables, and operational expansion without giving up equity — debt financing for predictable cash-flow businesses.
Multiple instrument options
Cash credit, overdraft, bill discounting, invoice factoring, PO financing — pick the right mix for your business model.
CGTMSE-backed
Where eligible, working capital can be backed by CGTMSE guarantee — reducing collateral requirements significantly.
Revolving facility
Cash credit and overdraft are revolving — repay and redraw within the limit any number of times during the year.
Wide lender pool
Public sector banks, private banks, NBFCs, fintech lenders, and supply chain finance platforms all participate.
What we help with
Working capital needs assessment
We model your operating cycle (inventory days + receivable days − payable days) to size the right limit.
Cash Credit (CC)
Revolving working capital facility — typically secured by stock and receivables, with monthly stock statements.
Overdraft (OD)
Drawable line against fixed deposit, property, or other collateral — flexible draw-down and repayment.
Bill / Invoice discounting
Discount invoices raised on creditworthy buyers — improves cash flow and is off-balance-sheet in some structures.
Purchase Order financing
Fund inventory or raw material against confirmed customer POs — useful for trade-cycle businesses.
TReDS (Trade Receivables Discounting)
RBI-regulated digital platform for discounting MSME receivables against large buyers — competitive rates, no recourse.
Working capital — the silent killer (or growth driver)
Working capital is the operational lifeblood of every business. Trade-led, manufacturing, distribution, services — every business model has a cash cycle, and the cycle has timing gaps. Inventory has to be bought before customers pay. Wages and rent are due monthly while receivables come in over 30, 60, or 90 days. These gaps are the working capital need.
The right working capital structure is matched to the business: cash credit suits inventory-heavy traders and manufacturers; overdrafts suit asset-rich businesses with episodic cash needs; bill discounting and TReDS suit businesses with creditworthy B2B customers and long invoice cycles. Picking the wrong instrument leads to over-collateralisation, mispricing, or operational friction.
Our role is to assess your operating cycle, structure the right working capital mix, match you with lenders who actively underwrite your sector, and shepherd the application through sanction. We routinely place CC, OD, and bill discounting facilities across PSU banks, private banks, and NBFCs.
Eligibility & documents
Who qualifies
- Operating MSMEs with at least 1–3 years of business vintage (lender-dependent)
- Profitable or break-even operations with predictable cash cycle
- Audited financials and GST returns showing turnover
- Clean banking track record — no recent EMI bounces or cheque returns
- Adequate primary security (stock + receivables) or collateral, or CGTMSE eligibility
- Proprietorships, partnerships, LLPs, private limited companies — all eligible
Documents we'll need
- Last 3 years' ITR + audited financials
- GST returns of last 24 months
- Bank statements of last 12 months (all operating accounts)
- Stock statement and debtors / creditors aging (latest)
- Existing loan repayment track record
- KYC of promoters and entity
- Business proof: incorporation / partnership / proprietorship
- Premises proof and security details (for collateralised facilities)
How Openedze helps
A clear, milestone-based path from kick-off to delivery
Operating cycle review
We model your cash cycle to determine the right working capital limit.
Instrument & lender selection
Cash credit, OD, bill discounting, or TReDS — picked to match your business model.
Application & appraisal
Filed with the matched lender. We coordinate stock audits, premises visits, and credit appraisal.
Sanction & drawdown
Limit sanctioned, documentation completed, account operational.
Support journey
Needs assessment
Week 1Operating cycle review and indicative working capital sizing.
Documents & lender matching
Week 1–2Documentation organised, lender shortlist finalised.
Application
Week 2–3Application filed with the bank/NBFC; document submission.
Credit appraisal
Week 3–6Bank conducts due diligence — stock audit, financial review, promoter interview.
Sanction & activation
Week 6–10Sanction letter, documentation, and account activation. Drawdown starts.
Frequently asked questions
Cash credit vs overdraft — what's the difference?▾
Cash credit is typically secured by stock and book debts, requires monthly stock statements, and is structured for inventory-led businesses. Overdraft is usually secured by FD, property, or insurance — more flexible, with no stock-statement requirement.
How is the working capital limit calculated?▾
Most banks use the Tandon Committee / Nayak Committee formula: 25% of projected turnover (for businesses with turnover up to ₹5 Cr) or based on operating cycle methodology for larger businesses. We model this for you.
Is collateral mandatory?▾
Below ₹2 crore, you can often go collateral-free via CGTMSE. Above ₹2 crore, lenders typically require collateral — though some sectors with strong receivables can get unsecured facilities.
How quickly can I get a working capital line activated?▾
From application to drawdown: typically 6–10 weeks for a first-time facility, 3–5 weeks for renewal/enhancement. NBFCs and fintech lenders can sometimes move faster (2–4 weeks) for smaller limits.
Can I shift my existing working capital facility to a different bank?▾
Yes. 'Takeover' of working capital limits between banks is common — typically when you find a better-priced or higher-quantum offer. We handle takeovers including the NOC and balance transfer paperwork.
Get the right working capital structure
Size, structure, and place your working capital with the right lender. Free 30-minute review of your cash cycle on the discovery call.