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Working Capital Finance

Working Capital loans help a business entity for procuring inventories, managing cash flows, supporting supply chains, funding production and marketing operations etc.

SBI’s Working Capital Finance products comprise a spectrum of funded and non-funded facilities ranging from overdrafts to structured loans to meet demands from industry, trade and services sector.

-- Funded facilities include overdrafts, demand loans and bills discounting.
-- Non-fund based facilities comprise letters of credit, bank guarantees and forward contracts

Funded facilities

  • Overdraft 
    Overdrafts are made available for procurement of goods and stocks and other current assets
  • Bills Discounted and Purchased
    Short-term credit bills arising from normal trade transactions of regular customers may be discounted and finance against receivables be provided to the seller by discounting the usance bills/promissory notes.

Non-fund based facilities

  • Letter of Credit
    A Letter of Credit (LC) is a documentary credit which is an undertaking issued by a bank, on behalf of the buyer (the importer), to the seller (exporter) to pay for goods and services provided that the seller presents documents which comply with the terms and conditions of the documentary credit.
  • Bank Guarantee
    Bank guarantee is a collateral contract from a bank consequent to a main contract between the applicant and the beneficiary. Bank Guarantees are issued:
    1. In lieu of security deposit/earnest money deposits for participating in tenders.
    2. Mobilization advance or advance money before commencement of the project by the contractor and for money to be received in various stages  like plant layout, design/drawings in project finance;
    3. In respect of raw material supplies or for advances by the buyers;

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