Cash credit is a type of short term loan provided to companies to fulfill their working capital requirement. Overdraft is a facility given by the bank to companies, to withdraw money in their respective accounts. Cash credit is a type of short term loan provided to companies to fulfill their working capital requirement.
Overdraft is a facility given by the bank to companies, to withdraw money "more" than the balance available in their respective accounts.
To make operations its strength, a company should finance the working capital in the best way possible. Cash Credit (CC) and Overdraft (OD) are types of short-term debt a company can rely on to take the burden off their finance department. They give a chance to companies to meet unexpected expenses and have enough liquidity.
