Cash Credit
CC facilities are commonly linked to working-capital needs and may operate against eligible current assets or security, with drawing and documentation rules set by the lender.
Overdraft
OD permits eligible withdrawals up to an approved limit. Structures vary and may be secured, property-backed, deposit-backed or based on lender programs.
Term funding
A term loan disburses a defined amount and is repaid through an agreed schedule. It can be more suitable for a specific asset or longer-term expenditure than a revolving working-capital line.
How lenders assess the need
Turnover, gross margins, operating cycle, receivables, inventory, bank conduct, existing limits and projected business activity can influence assessment.
Do not choose by label alone
The facility's interest calculation, utilization pattern, renewal requirements, security, covenants and charges matter more than the product name.
FAQ
Yes, lenders may consider enhancement based on updated financials, conduct, turnover and policy.