Cash Credit Meaning Cash credit is a short-term loan provided by banks to meet the working capital requirements of businesses. This flexible financing option allows businesses to withdraw cash even when there is no balance, up to an agreed limit. Cash credit offers businesses the flexibility to withdraw cash using a credit card, even with no balance, up to the credit limit. Interest is charged only on the amount withdrawn, not on the entire credit limit. Applying for Cash Credit is one of the best financing strategies to ensure stability, growth and efficient use of resources.

Cash Credit: Benefits for SMEs and How It Works