What does cash credit mean?
submitted by Frobert

Ronald Mountdew

It's a funny term because it sounds contradictory. Is it cash or credit?

Cash credit is basically a loan from the bank that a company can use whenever they need cash. Instead of taking a fixed amount, they have a limit, and they can withdraw money as needed. It helps businesses keep their day-to-day expenses covered without waiting for payments. It's like the bank has given you credit to get cash when you need, hence cash credit. It's weird, and it would be nice if there weren't hundreds of new terms the finance world introduced, but it is what it is.

Hp Toner is Theft

Cash credit is a short-term financing from a bank. They give you a line of credit so businesses can withdraw funds up to a certain amount. Something like this is used for working capital needs.

The amount borrowed is recorded as a liability in the books, and the bank's account is debited when the business withdraws cash.

Swamy

It's when a bank gives a company a special credit line, and they can take money out whenever they want, up to a certain limit. The company, of course, then owes that money back later. It's helpful for day to day business stuff that a company might need to cover while they wait to collect on their receivables.