Working Capital Loan And Cash Credit System

Therefore, a banker may be called upon to arrange for large amounts of funds at short or no notice at pre-determined rate of interest.
In such a situation, funds management and financial planning become relatively low priority issues for the borrowers
They can pass on the consequences of inadequate planning and inefficient management on their part to the banking system
The problem may manifest itself in the form of a serious strain on the bank’s cash management system.