Working capital, trade finance and term loans for businesses
Biz Corp Solutions arranges the day-to-day and growth funding businesses run on: cash credit and overdraft limits, bank guarantees and letters of credit, bill discounting, export packing credit and term loans for machinery and expansion. We work out the right mix of limits for your operating cycle and approach suitable banks, NBFCs and financial institutions for you.
- Fund-based
- CC, OD, WCDL & term loans
- Non-fund-based
- Bank guarantees & LCs
- Lenders
- Banks, NBFCs & FIs
- Coverage
- Maharashtra · Gujarat · Karnataka
What working capital and term loans cover
Every business needs two kinds of funding: money to run the business day to day, and money to grow it. Getting the right limits, sized to how your business actually works, is what keeps operations running smoothly.
Working capital limits fund the gap between paying suppliers and staff and collecting from customers. Term loans fund long-term assets such as machinery, equipment and premises. Trade finance — letters of credit, bills and export credit — makes buying and selling across businesses and borders possible. We help you put the right combination in place with banks, NBFCs and financial institutions.
Who it is for
- Manufacturers, traders and service businesses
- Contractors who need cash credit and bank guarantee limits
- Dealers and distributors funding stock
- Exporters and importers
- MSMEs renewing, enhancing or moving existing limits
What we arrange
- Cash credit and overdraft limits
- Working capital demand loans
- Bank guarantees and letters of credit
- Bill and invoice discounting
- Export packing credit and post-shipment finance
- Term loans for machinery, equipment and expansion
From requirement to sanctioned limits
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01
Share your requirement
Tell us about your business, turnover, existing limits and what you need funding for — stock, receivables, guarantees, exports or machinery.
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02
Assessment and structuring
We review your operating cycle, financials and order book, and work out the right mix of fund-based and non-fund-based limits.
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03
Lenders and documentation
We approach suitable banks, NBFCs and financial institutions and prepare the file, including projections and stock and debtor statements, keeping you updated.
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04
Sanction and set-up
Once the lender sanctions the limits, accounts are set up and you draw funds or issue guarantees within the agreed terms. Limits are reviewed and renewed periodically.
What lenders typically ask for
Working capital lenders look at how your business buys, sells and collects. These are the documents most applications need, and we help you put them together.
- Constitution and KYC documents of the business and promoters
- Audited financial statements and income tax returns for recent years
- Provisional financials and projections for the current and next year
- GST returns and bank statements for the last 12 months
- Stock statements and debtor and creditor ageing
- Udyam registration certificate (for MSMEs)
- Order book, work orders or export orders, where relevant
- Existing loan and limit details with sanction letters
Note: the exact list, margins, security and conditions are set by each lender and depend on the facility.
See the full document checklist: Working capital document checklist
Working capital and term loan questions
What is the difference between a term loan and cash credit?
A term loan is drawn for a specific purpose, such as machinery or expansion, and repaid in fixed instalments over several years. Cash credit is a revolving limit for day-to-day needs, drawn against stock and receivables, where you pay interest only on the amount used and the limit is reviewed periodically.
What is drawing power?
Drawing power is the amount you can actually draw from a cash credit limit at a given time. Lenders calculate it from your latest stock and book-debt statement after deducting margins, so it can be lower than the sanctioned limit.
Do bank guarantees use up my cash?
A bank guarantee is a non-fund-based facility, so money moves only if it is invoked. But lenders usually ask for a cash margin or collateral and count each guarantee against your sanctioned non-fund-based limit.
Can you help exporters with packing credit?
Yes. We help exporters arrange pre-shipment packing credit and post-shipment finance alongside their other limits, with banks that handle export credit.
Do MSMEs get any special benefits?
Micro and small enterprises registered on Udyam benefit from priority-sector status, RBI's collateral-free limits for smaller loans and optional CGTMSE guarantee cover. Our guides explain the current rules.
Which areas do you cover?
We serve businesses across Maharashtra, Gujarat and Karnataka from our office in Badlapur East, Thane district.
Read before you apply
Term loan vs cash credit vs overdraft: which business loan fits which need?
Term loan, cash credit, overdraft or WCDL? How each works, how interest and drawing power are worked out, security, renewal and RBI's 2026 account rules.
Working capital for contractors: cash credit, bank guarantees, bill discounting and more
How contractors fund running costs: cash credit and overdraft, bank guarantees, bill discounting and TReDS, equipment loans, and MSME benefits in 2026.
Trade finance for MSMEs: letters of credit, bill discounting and packing credit explained
Trade finance for MSMEs: letters of credit, bills for collection, bill discounting, packing and post-shipment credit, and the 2026 export subvention.
Dealer and distributor finance: how channel finance funds your inventory
How dealer and distributor (channel) finance works: anchor tie-ups, invoice-based drawdowns, credit periods, what banks assess and how it compares with CC.
What lenders want in a project report (DPR) for a term loan
What banks look for in a project report for a term loan: structure, cost and means of finance, projections, DSCR, CMA data, TEV studies and RBI's 2025 rules.
Why loan applications get rejected — and how to fix the file
Why business and property loan applications get rejected — credit report errors, overdues, high EMIs, income gaps, property issues — and how to fix and reapply.
Run the numbers first
MPBF working capital (Nayak & Tandon II)
Size your Cash Credit limit from CMA data: Nayak Committee 20% of projected turnover (up to ₹5 crore) and Tandon Committee 2nd Method (1.33x current ratio).
Drawing power & working capital limit
Cash credit drawing power from a stock and book-debt statement, plus limit assessment by the turnover method and MPBF (Tandon Method II).
CGTMSE guarantee cover & annual fee (AGF)
Collateral-free MSME loan cover (75%–85% up to ₹10 crore), Hybrid Security deduction and slab-wise Annual Guarantee Fee with 18% GST.
TReDS / invoice discounting vs cash credit
Net day-1 liquidity and interest cost of discounting corporate/PSU invoices on TReDS vs funding debtors under a Cash Credit limit (after 25% margin).
MSME delayed payment interest (MSMED Act)
Interest on overdue invoices at three times the RBI Bank Rate with monthly rests, date-wise rates, part payments, the 45-day limit and the buyer's tax disallowance.
Bank guarantee cost vs surety bond
Commission charged by the month or quarter, GST, the cost of cash margin kept as an FD, and the same cover from an insurance surety bond.
Often arranged together
Need working capital or term loan limits?
Share your requirement and our advisory team will call you to discuss the right mix of limits for your business.
Biz Corp Solutions arranges funding through partner banks, NBFCs and financial institutions. Sanction, interest rates and terms are decided by the lender. Last reviewed 5 October 2026.