Working Capital and Cash Flow Management for MSMEs
Cash-flow forecasts, receivables plans and working-capital limit papers for the bank you choose
Many profitable MSMEs run short of cash because their money is held up in unpaid invoices and stock. Our expert team builds a cash-flow forecast from your books, shows where the cash is held up, and prepares the papers for a new or larger working-capital limit with the bank you choose. The bank decides on the limit; we do not arrange loans or act for any lender. The work is quoted on its scope.
Who it is for
- Units that show a profit but struggle to pay suppliers, salaries or EMIs on time
- Businesses whose cash-credit or overdraft limit is always fully used
- Suppliers to large companies or government buyers who are paid late
- Borrowers whose bank has asked for CMA data, stock statements or projections at renewal
- Units planning a large order, a new product or a seasonal build-up of stock
What our expert team does
Cash-cycle review
From your books we work out how many days cash stays in stock and in receivables and how many days your suppliers give you, and so how long your own money is locked in each rupee of sales.
Cash-flow forecast
We build a week-by-week or month-by-month forecast of receipts and payments, including taxes, EMIs and salaries, so that a shortfall is seen weeks ahead and not on the day.
Receivables plan
We list overdue customers by age and amount and agree a follow-up routine. Where a buyer is late in paying a micro or small enterprise, we explain the delayed-payment route under the MSME law and the TReDS platforms, where invoices to large buyers can be discounted.
Stock and payables
We point out slow-moving stock and set out which supplier payments can wait and which cannot, including dues to micro and small suppliers that carry a time limit.
Working-capital assessment
We work out the limit your business can justify on the methods banks use, and prepare the CMA data and projections in the bank’s format.
Bank papers and queries
We prepare the papers your chosen bank asks for at sanction, renewal or enhancement, including the periodic stock and book-debt statements, and revise the numbers if the bank raises queries.
Monthly review
On a continuing engagement we compare the actual cash with the forecast every month and update it.
What you receive
- A cash-flow forecast you can update yourself
- A note on your cash cycle: days in stock, receivables and payables
- A list of overdue receivables with a follow-up plan
- CMA data and projections in the bank’s format, where a limit is being sought
- A checklist of the papers your chosen bank asks for
Documents needed
- Financial statements for two to three years
- Books of account or ledgers for the current year
- Customer-wise and supplier-wise outstanding lists
- A stock statement
- Sanction letters and statements of existing limits and loans
- Bank statements for the last twelve months
- Orders in hand and the sales plan for the next year
Timeline
| Step | Time |
|---|---|
| Cash-cycle review and forecast, once your books and statements reach us | 5–7 working days |
| CMA data and projections, once the documents are complete | 5–7 working days |
| Appraisal, sanction or renewal of the limit | Depends on the bank or lender |
Fee
A cash-flow review, a forecast and CMA data are each quoted on their scope: tell us what you need and get a quote in writing. A continuing monthly review can be added to the bookkeeping or the virtual-CFO service.
We advise and prepare papers; you apply to the bank or lender of your choice and the bank decides. We do not arrange loans, act for any lender or promise a sanction, a limit or a rate. We do not recover money from your customers for you: a dispute goes to the Facilitation Council or to an independent advocate, introduced on request.
Frequently asked questions
My business is profitable. Why am I always short of cash?
Profit is counted when you raise the invoice; cash comes when the customer pays. If customers take longer to pay than your suppliers allow you, or stock sits for months, growth itself uses up cash. The cash-cycle review shows where the money is held up and how much.
How does a bank decide my working-capital limit?
Banks look at your current assets and current liabilities, your sales, the operating cycle and your own margin. Our guide to working capital loans and CMA data explains the methods and what you can prepare in advance.
What is CMA data?
A standard set of past and projected financial statements and ratios that banks use to assess working-capital limits and term loans. We prepare it from your books in the format your bank asks for.
A large buyer pays me late. What can I do?
If you are a registered micro or small enterprise, the MSME law limits the credit period and gives you a claim for interest, which can be taken to the Facilitation Council through the MSME Samadhaan portal. Invoices to large buyers can also be discounted on a TReDS platform. Our guides explain both routes.
Do you work for a bank, or get the loan for me?
No. We prepare the forecast and the papers for the bank or lender you choose, and the bank decides. We take no fee from any lender.
Can I get a working-capital loan without collateral?
For eligible micro and small enterprises a credit-guarantee scheme can stand in for collateral, where the bank agrees. Our project-finance page and the guide to CGTMSE set out how it works; the bank decides.
Related tools and guides
Official sources this page relies on
Page checked on 11 November 2026.
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