4 Types
Working Capital Products
50+
Bank & NBFC Partners
Pay Only
On What You Use
Free
Initial Consultation
What Is Working Capital Finance?
Working capital finance is a short-term credit facility used to cover daily operational costs inventory purchase, payroll, vendor payments, raw material procurement, and bridging gaps between receivables and payables. Unlike a term loan, which is disbursed as a lump sum and repaid in fixed EMIs, working capital facilities like Cash Credit (CC) and Overdraft (OD) are revolving — you draw funds as needed and repay when cash flows in, paying interest only on the amount actually used.
JBFC helps businesses — from MSMEs to large corporates, identify and secure the most appropriate working capital facility through our network of 50+ banks and NBFCs, at the most competitive rates available for their financial profile.
Quick Answer
What is the difference between a working capital loan and a term loan?
A term loan is a fixed lump-sum disbursement repaid through structured EMIs over a defined period used for capital expenditure, machinery, or expansion. A working capital loan (CC or OD) is a revolving facility, you draw and repay repeatedly, paying interest only on the daily outstanding balance. Working capital finance is designed for operational needs; term loans are designed for long-term asset creation.
Products We Facilitate
Working Capital Products JBFC Arranges
Product Selector
Which Working Capital Product Is Right for Your Business?
Each working capital product serves a different business need. JBFC assesses your business model, cash flow cycle, and lender options before recommending the right product or a combination of products for your situation.
| Business Situation | Best Product | Why |
|---|---|---|
| High inventory, fluctuating stock | Cash Credit (CC) | Revolving limit secured against stock — draw as stock builds, repay as it clears |
| Liquidity buffer, property available | Overdraft (OD) | Flexible overdraft against property or FD — use only when needed, pay only on usage |
| Large B2B invoices, delayed payments | Invoice Discounting | Convert outstanding invoices to immediate cash without waiting 30–90 days |
| Import trade, govt contracts | LC / BG | Bank-backed guarantee to suppliers or government without tying up own funds |
| Multiple needs simultaneously | CC + OD or CC + LC | JBFC structures a combined working capital package tailored to your business model |
* Not sure which product fits? JBFC provides a free advisory session to assess your working capital requirements and recommend the right solution.
Eligibility
Who Can Apply for Working Capital Finance?
Working capital facilities are available to both MSMEs and corporate entities. The following are standard eligibility factors across JBFC's lender network. Requirements may vary by product and lender.
Business Vintage
Minimum 1–2 years in operation for NBFCs; 2–3 years for most banks. The business must show a stable and active trading history with regular banking transactions.
Business Entity
Sole proprietorships, partnership firms, LLPs, and private limited companies across manufacturing, trading, and services. Both MSME and corporate entities are eligible.
Turnover & Banking Activity
Demonstrable and consistent annual turnover reflected in bank statements and GST returns. Active banking behaviour — regular credits, low bounce rate on ECS/NACH, is a key positive signal for CC and OD assessments.
CIBIL Score
700+ preferred for most working capital products. Both the company's and the promoter's CIBIL scores are reviewed during credit assessment. Clean repayment history on existing loans is essential.
GST & ITR Compliance
Regular GSTR-1 and GSTR-3B filings and 2–3 years of filed ITRs with consistent turnover. Lenders cross-reference bank statement turnover with GST turnover during the credit review process.
Collateral (Product-Dependent)
CC limits are secured against stock and debtors. OD facilities typically require property, FD, or LIC collateral. Invoice discounting is invoice-backed with no property required. LC/BG may require a margin deposit or existing bank relationship.
Already have a CC or OD limit? JBFC also helps businesses enhance existing working capital limits, negotiate better interest rates, or refinance to a more competitive lender without disrupting current banking relationships.
Documentation Checklist
Documents Required for Working Capital Facilities
JBFC provides a customised checklist based on your specific product and lender. The following are standard requirements:
* JBFC reviews your full documentation set before submission, identifying gaps and resolving inconsistencies that cause delays or rejection.
Our Process
How JBFC Helps You Secure Working Capital Finance
Cash Flow & Working Capital Needs Assessment
We begin by understanding your business's cash flow cycle, how long inventory stays on the shelf, when receivables convert to cash, your payable obligations, and your peak working capital requirement. This shapes which product and what limit is appropriate for your specific business model.
Financial Profile Review & Document Preparation
JBFC reviews your CIBIL score, turnover, banking behaviour, ITR, and GST filings before approaching any lender. We prepare and review your full document set, resolving gaps in stock statements, debtor lists, or financial consistency that lenders commonly flag during credit review.
Lender Selection & Application Submission
We identify the right lender from our 50+ bank and NBFC network based on your sector, required product type, and financial profile then submit a professionally prepared application. Our targeted approach maximises approval probability and protects your CIBIL from unnecessary hard enquiries.
Sanction, Setup & Annual Renewal Support
JBFC follows up actively through to sanction and account activation. We also support you at the annual CC/OD renewal stage, preparing updated financials and stock statements to ensure your limit is renewed smoothly and, where eligible, enhanced based on your growing turnover.
Sectors We Serve
Businesses That Need Working Capital Finance
Working capital needs are universal — every business has a cash flow cycle. JBFC works with a broad range of sectors across Mumbai, Thane, and pan-India.
Manufacturers
Factories and production units needing CC limits to fund raw material procurement between production cycles and customer payments.
Traders & Distributors
Wholesale traders and distributors requiring CC or OD limits to manage fluctuating inventory levels and maintain payment commitments to suppliers.
Exporters & Importers
Businesses involved in cross-border trade needing Letter of Credit (LC) facilities to manage supplier payments and reduce counterparty risk in international transactions.
Service Businesses
IT firms, logistics companies, contractors, and service providers with long billing cycles, invoice discounting converts outstanding receivables into immediate operational liquidity.
Government Contractors
Businesses executing government contracts requiring Bank Guarantee (BG) facilities as security for performance or advance payment obligations under contract terms.
Growing MSMEs & Corporates
Businesses experiencing rapid growth where working capital requirements are outpacing the current CC limit — JBFC helps structure limit enhancements or additional working capital facilities.
Why Choose JBFC
Why Businesses Choose JBFC for Working Capital Consulting
Right Product for Your Business
We don't push one product for every client. JBFC assesses your specific cash flow cycle and business model before recommending CC, OD, invoice discounting, or LC/BG — or a combination that gives you maximum coverage.
Trusted Since 2018
Six years of working capital advisory experience across manufacturers, traders, exporters, and service businesses in Mumbai, Thane, and beyond — giving us lender relationships and sector insights that make a real difference.
50+ Lender Network
Access to PSU banks, private banks, and NBFCs, many with sector-specific working capital products and preferential rates. Our network gives you options you wouldn't discover by walking into a single branch.
Limit Enhancement Support
JBFC helps growing businesses enhance existing CC and OD limits as turnover increases — preparing updated financials, stock statements, and negotiating higher limits at renewal without disrupting existing banking relationships.
CIBIL Score Protection
Every application leaves a hard enquiry on your CIBIL report. JBFC pre-assesses your profile and submits applications only to lenders where approval is realistic — protecting your credit score throughout.
Annual Renewal Management
CC and OD limits require annual renewal. JBFC remains your long-term advisor — supporting you at renewal time with updated documentation, financial presentations, and negotiations for limit enhancements based on your growing business profile.
Frequently Asked Questions
Working Capital Finance — FAQs
What is the difference between Cash Credit (CC) and Overdraft (OD)?
Both are revolving working capital facilities, but they differ in security and usage pattern. A Cash Credit (CC) limit is secured against hypothecation of current assets — stock and debtors — and is primarily designed for businesses with high inventory and receivable cycles, like manufacturers and traders. An Overdraft (OD) facility is typically secured against a fixed asset (property, FD, or LIC) and gives the borrower more flexibility in how they use the funds — it functions as a "dip into" limit when cash is needed, for any operational purpose.
How is the CC limit amount determined by the bank?
Banks typically calculate the CC limit based on a percentage (usually 75–80%) of the value of your current assets — stock in trade, raw materials, work-in-progress, and accepted book debts. This is assessed through the Drawing Power (DP) mechanism, which is reviewed monthly or quarterly by the bank based on your submitted stock and debtor statements. The overall sanctioned limit is also influenced by your annual turnover, profitability, and credit history.
How does invoice discounting work?
With invoice discounting, a lender advances a percentage (typically 70–90%) of the face value of your outstanding invoices immediately after they are raised. When your customer pays the invoice on its due date, the lender recovers the advance plus interest and fees, and releases the balance to you. This allows businesses to convert their receivable assets into immediate cash without waiting for customer payment cycles to complete — ideal for businesses with 30–90 day payment terms on B2B invoices.
What happens at CC/OD renewal? Does JBFC help with this?
CC and OD facilities are sanctioned for one year and require annual renewal. At renewal, the bank reassesses your financials — updated ITR, P&L, balance sheet, and stock statements — and may revise the limit up or down based on your business performance. JBFC assists clients at renewal by preparing updated financial documentation, presenting growth in turnover compellingly, and negotiating for higher limits where your business performance justifies it.
Can a new business or startup get a working capital loan?
Most formal CC and OD products from banks require 2–3 years of business vintage and documented financial history. However, certain NBFC products may be available to businesses with 1–2 years of operation and active GST filing. For very new businesses, JBFC advises on building the right financial foundation first — active banking behaviour, clean GST compliance, and consistent turnover — that will support a strong working capital application in the near future.
What is a Bank Guarantee (BG) and when does my business need one?
A Bank Guarantee is a written assurance from a bank to a third party — a government department, tender authority, or supplier — that the bank will meet a financial obligation on your behalf if you fail to do so. BGs are commonly required for: government tenders (bid security or performance guarantee), advance payment guarantees to large vendors, customs and import clearances, and real estate project approvals. JBFC helps businesses obtain BG facilities through our partner banks — structuring the application and collateral requirements for efficient issuance.
Get a Free Working Capital Assessment
Ready to Optimise Your Cash Flow?
Talk to a JBFC working capital advisor today. Free consultation. No obligation. We assess your business's working capital needs, identify the right product, and manage the entire process through to sanction and activation.
J B Financial Consultants is a registered loan advisory firm — not a bank or NBFC. All loan approvals are subject to lender eligibility norms and credit assessment.