WORKING CAPITAL FINANCE

• Purchase of raw material and stores
• For payment of labour and Power charges
• For storing finished goods till they are sold out
• For financing the sales by providing credit to debtors/ receivables.
Working Capital Products

Fund Based Working Capital Products

• Cash Credit
• Export Packing Credit
• Bill Discounting
• Letter of Credit Discounting

Non Fund Based Working Capital Products

• Bank Guarantee
• Letter of Credit / CAPEX LC
• Bill Discounting

Cash Credit is a running account facility which enables the customers to utilise amounts from the Cash Credit Account, up to the extent of the sanctioned limit. Cash credit is provided to bridge the working capital gap in business. The products are highly flexible to meet the needs of various business segments. Cash Credit Facility is Available to Manufacturers, Service providers, Retail / Wholesale Traders Importers and Exporters Cash Credit is extended against hypothecation of stock, receivable, short term deposits and other current assets which generally hold up the liquidity of a business.

Eligibility for Cash Credit is determined

• Assessed Working Capital Requirement
• Cash profits in the current and previous year
• Availability of Real Estate Collateral

• Current Assets pertaining to Business
• Fixed Deposits
• Residential / Commercial Property
• Industrial Property
• GOI Bonds / Debt Funds / LIC Surrender Value

We at Avosys, arrange for Export Packing Credit to finance customer needs to execute export orders. This facility is available in rupee and foreign currency. This facility is available to Export Manufacturing Entities. Eligibility of the credit is based on export orders in hand and in addition to existing working capital limits.

Also known as post shipment financing, this is another form of lending to the exporters. After execution of orders, once the goods are shipped to the final destination, the client can avail funding against such bills/invoices, in INR as well as foreign currency. This form of financing is a part of existing working capital limits.

Key Features

• Foreign Currency pricing: For foreign currency discounting, the interest rates being pegged reference like LIBOR and US dollar LIBOR work out cheaper for the customers.

Under this offering the bank discounts the Letter of Credit obtained by the clients against credit sales, done by them.

Key Features

• Collateral not required, easy documentation

Two types of Bank Guarantee are made available, namely Performance Guarantee and Financial Guarantee. Performance Guarantee covers timeliness, service quality and adherence to terms of agreement whereas Financial Guarantee covers payment. It is typically used by traders, service providers and contractors for any kind of bidding, performance guarantee or retention money.

Key Features

• Wider acceptance
• Number of Banks offering competitive products

This is used for buying raw material/ capital goods on credit, both domestic (Inland) and Import (Foreign). Working capital LC is issued for a maximum period of 6 months and Capex LC is issued for a maximum period of 3 years.

Key Features

• Globally accepted LC
• Large network of correspondent banks across the world

This is generally used for import of raw materials. The funding is available upto 360 days, subject to the working capital cycle of the business.

Key Feature

• It offers LIBOR based pricing, which is cheaper than rupee pricing