Working Capital Loan

Working Capital Loan at 9.00%*

Working capital funding fills the gap between paying for stock and being paid by customers. A cash credit or overdraft limit is sanctioned against your stock and book debts; you draw what you need, repay as collections come in, and pay interest only on the amount actually used — not on the sanctioned limit.

Alongside CC and OD, FTM arranges bill and invoice discounting, letters of credit for purchases and bank guarantees for tenders and contracts. Existing limits running with another bank can be taken over, usually with an enhancement, where the conduct of the account has been satisfactory.

At a glance

What the facility gives you

• Cash credit and overdraft limits of any amount
• Interest charged only on the amount drawn
• Drawing power against stock and book debts, reviewed monthly
• Bill discounting, letter of credit and bank guarantee facilities
• Takeover and enhancement of limits running with another bank
• Renewed annually — no fresh sanction formalities each time you draw

Who is eligible

• Proprietorship, partnership, LLP or private limited company
• Business vintage of at least 3 years with audited financials
• Regular GST filings consistent with the declared turnover
• Stock and receivables adequate to support the drawing power
• Satisfactory conduct on existing limits, with no persistent overdrawing

Documents required

• KYC and business constitution documents
• Last 3 years audited financials with ITR and computation
• Provisional financials and projections for the current year
• Last 12 months bank statements of all operating accounts
• Last 12 months GST returns
• Stock and book debt statement, with ageing of debtors and creditors
• Existing sanction letters of limits running with other banks
• Collateral property documents, where security is offered

Frequently asked questions