Fabrication workshop clears a working capital squeeze at renewal

The problem

Turnover had grown 60% in two years but the cash credit limit had not moved since sanction. The firm was funding the gap through supplier credit and a costly unsecured NBFC loan.

What we did

• Measured the actual operating cycle — debtor, inventory and creditor days — from the books
• Sized the limit on a defensible assessment method rather than a round-number request
• Prepared CMA data with historical and projected periods clearly separated
• Presented the NBFC takeover as part of the same proposal, with the interest saving quantified

Outcome

Limit enhanced and the NBFC facility retired. Interest cost fell and the firm stopped rationing raw material purchases at month end.