Working Capital Finance

Working-capital finance funds the day-to-day operating cycle — stock, debtors, and the gap before customers pay — through facilities such as cash credit, overdraft, and bill discounting. The limit is assessed on the business's turnover and working-capital cycle.

The firm assesses the limit, prepares the proposal, and arranges or renews the facilities with the bank.

Working-capital finance advisory includes:

• Assessment of the working-capital limit required
• The proposal and projected balance sheet/MPBF working
• Cash-credit, overdraft, and bill/invoice-discounting facilities
• Lender identification and the application
• Renewals and enhancements of existing limits

1. 01

   Assess the limit

   Compute the working-capital requirement and eligible limit.

2. 02

   Prepare

   Build the proposal and the supporting workings.

3. 03

   Approach

   Identify the lender and submit the application.

4. 04

   Close & renew

   Support sanction, and manage renewals and enhancements.

PBT helps you secure the working-capital limits your operations need.

• A sound assessment of the limit required
• A well-prepared proposal and workings
• The right facility mix for your cycle
• Support through sanction, renewal, and enhancement
• Scope, deliverables, and fees agreed in writing up front

• How is the working-capital limit decided?

  Generally on the operating cycle and turnover, using methods such as the MPBF (maximum permissible bank finance) computation. We assess and present it.

• What facilities count as working-capital finance?

  Cash credit, overdraft, and bill or invoice discounting are the common ones. We arrange the mix that suits your cycle.

• How long does it take?

  Preparing the proposal takes a week or two; sanction runs on the bank's timeline, and renewals are annual.