Cash Credit Renewals
Cash Credit means:
A Cash Credit (CC) is a short-term source of financing for a company. In other words, a cash credit is a short-term loan extended to a company by a bank. It enables a company to withdraw money from a bank account without keeping a credit balance. The account is limited to only borrowing up to the borrowing limit. Also, interest is charged on the amount borrowed and not the borrowing limit.
Renewal of cash credit:
Basically CC is a Cash Credit facility offered by bank by assessing working capital of the business for projected year. It can be disbursed as per demand of the borrower. Every year CC account should be renewed by bank by taking next year’s projection for calculation of working capital. And bank also sees whether last financial report in congruence of projection.