CC/OD
SHIVAM ENTERPRISES Working capital of the business is essential for running the daily operations, and for that the company needs to take short term loans or long term loans. The popular options in short term loans are cash credit and overdraft and long term loan options are line of credit or business loans, etc. Cash credit and overdraft are two types of short term loan facilities offered by the lenders to the businesses. Overdraft facility is also offered to individuals based on their relationship with the bank. Cash credit is referred to as a short term business loan that is offered to businesses for maintaining the working capital, while overdraft facilities are offered to businesses and individuals who wish to withdraw more than their available balance in the bank account. Following are some points of difference between cash credit and overdraft.