Question

What are the advantages of cash credit?

Answer 1

Cash credit offers the following advantages:

1. Helps in fulfilling the working capital requirements.
2. Interest payable only on the amount utilised.
3. Flexibility
4. The loan arrangement is comparatively easy.

Also read:

• Difference Between Cash Credit and Overdraft
• Difference Between Shares and Debentures
• What Are Equity Shares
• Forfeiture of Shares
• Issue of Shares

Learn about more commerce questions and answers from different topics in business studies, economics and accountancy from our website.