The Secret behind Cash Credit for Business people
Overview: Every business people at some point in time face a critical financial problem due to the current shortage of working capital to run their business. Entrepreneurs become exhausted in searching for money to continue their business without any loss in production. In order to solve the sudden shortage of money, banks help business people a running credit limit, called as cash credit, popularly known as CC. Cash credit account is normally like a current account which is used by the business people to meet their sudden financial crises. What is Cash credit? Let us consider an example how cash credit helps business people, for that let us consider a factory where the business owner invest money to buy raw materials these raw materials are then converted into finished goods. The intermediary goods are called as work-in-progress. The raw materials, work-in-progress and finished goods together constitute inventories. The business owner’s fund invested as inventories does n...