CC Account Full Form: What Is a Cash Credit Account? - GlobalBanks (2024)

In this article, we’re providing an overview of the CC account, full form definition, examples of how CC accounts are used and more.

This article is part of our series on banking basics, ranging from opening different types of bank accounts around the world to understanding how various aspects of the banking system operate.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

  1. CC Account Full Form
  2. What Is a CC Account?
  3. Banking Services of Cash Credit Accounts
  4. Frequently Asked Questions
  5. Do You Want Help Opening Bank Accounts?

CC Account Full Form

CC account full form is “cash credit account”, which is a borrowing facility available to businesses for working capital financing. Access to a CC account is determined by creditworthiness, collateral, revenue, and more.

Not surprisingly, CC accounts are offered to support short-term financing. And, like other forms of financing, businesses only pay interest payments when they access the financing.

What Is a CC Account?

A CC account is a type of borrowing facility available to business clients in order to access short term working capital. Like other borrowing facilities, cash credit accounts have credit limits, which is the maximum amount that a business can borrow without receiving an extension of addition credit from the bank.

Who Can Open Cash Credit Accounts?

Cash credit accounts can be opened by a wide range of businesses, including sole proprietorships, partnerships, and corporations. With this in mind, popular corporate structures such as Limited Liability Companies (LLCs) and other corporate structures can open cash credit accounts.

Banking Services of Cash Credit Accounts

The most important banking services that you can unlock with cash credit accounts is access to financing and the ability to withdraw funds to support your business. That said, cash credit accounts also offer overdraft protection, repayment flexibility, and the ability monitor and manage the account remotely.

Which Banks Have Cash Credit Accounts?

Most major banks offer cash credit accounts to their customers, including Citibank, HSBC, Bank of America, Wells Fargo, JP Morgan Chase, and more. That said, whether these banks are willing to offer cash credit accounts to a particular business is assessed on a case-by-case basis.

Do Cash Credit Accounts Require a Deposit?

No, cash credit accounts do not typically require a deposit. However, in order to access a cash credit account from a bank, businesses need to be able to demonstrate their creditworthiness. Additionally, banks will also look at the existing and projected revenue of the business, existing debts, cash position, and available collateral.

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Frequently Asked Questions

Below are a few of the most common questions we receive from people looking into what banks are in trouble. If you have further questions you would like to ask our team, don’t hesitate to get in touch.

Is a CC Account a Current Account?

Yes, a CC account or cash credit account is a current account. This means are available on a transactional basis from day-to-day. In fact, CC accounts enable immediate access to funding for businesses, which is the nature of current accounts.

What Is CC in Business?

In the world of business banking, CC refers to cash credit, which is the total loan facility that a financial institution offers to business customers. Cash credit is a form of financing, available to businesses up to the specified limit. Businesses can withdraw from the cash credit amount in order to cover short term financing needs, pay for operational expenses, and in the case of financial emergencies. Similar to other forms of financing, businesses only pay interest on the amount actually used, not the total available limit.

What Is CC Limit in Banking?

In banking, the CC limit refers to the cash credit limit, which is the maximum amount of money that a business is able to borrow from a bank or financial institution. The CC limit is often determined by the creditworthiness of the business, their revenue level, existing debts, and collateral value.

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CC Account Full Form: What Is a Cash Credit Account? - GlobalBanks (2024)

FAQs

CC Account Full Form: What Is a Cash Credit Account? - GlobalBanks? ›

A Cash Credit (CC) is a short-term source of financing for a company. In other words, a cash credit is a short-term loan extended to a company by a bank. It enables a company to withdraw money from a bank account without keeping a credit balance.

What is cash credit bank account? ›

What is meant by Cash credit? Cash credit is referred to as short-term funding or loan for a company so that it can meet its working capital requirements. Cash credit is a sort of loan that is offered to businesses by financial institutions like banks.

What is the difference between current account and cash credit account? ›

The cash credit account is like current account. The only difference is that current account allows overdraft facility occasionally, while cash credit allows overdrawing from the account on a continuous basis.

Can we withdraw cash from cash credit account? ›

Yes, cash can be withdrawn from the CC (Cash credit) account, but there are certain limitations on the amount that can be withdrawn.

What does CC Bank stand for? ›

We are excited to announce a significant milestone in the growth and evolution of Capital Community Bank (CCBank).

What happens when you credit a cash account? ›

If another transaction involves payment of $500 in cash, the journal entry would have a credit to the cash account of $500 because cash is being reduced. In effect, a debit increases an expense account in the income statement, and a credit decreases it.

Do you pay back cash credit? ›

You might be able to pay back a cash advance as soon as it's posted to your account. However, you may need to repay more than you borrowed because many credit cards charge a cash advance fee. Interest can also start accruing daily, leading to a larger balance if you don't pay off the cash advance quickly.

What is an example of a cash credit? ›

A cash credit loan can be used to meet the working capital gap in situations such as the following: Purchasing raw materials. Maintaining inventory. Paying salaries and rent.

How to transfer money from cash credit account to current account? ›

3. Netbanking:
  1. Visit your bank's official website.
  2. Log in to your credit card account via net banking.
  3. Select the transfer money option.
  4. Enter the transfer amount and the required details.
  5. Follow the instructions to complete the transaction.
Apr 1, 2024

Which is better to use cash or credit? ›

Your spending habits will help settle the cash vs. credit debate. Cash is better if you tend to overspend or need help maintaining a budget. Credit cards will help build credit and earn rewards if you spend more responsibly.

How much cash can be withdrawn from CC account? ›

The Cash advance limit is a portion of the overall Credit limit, ranging from 20% to 40%. For instance, if your Credit limit is Rs 1,00,000 then you can withdraw between Rs 20,000 to Rs 40,000 as cash. The remaining balance can be used for Card transactions only.

How do I get a CC account? ›

How to Apply for a Cash Credit Loan?
  1. Visit the bank where you have a business account.
  2. Check your loan eligibility.
  3. Fill out the loan application form with personal details.
  4. Attach the required KYC documents and a photograph.
  5. Submit all the documents required.
Feb 10, 2023

How do I close my cash credit account? ›

To pre-close your account, please contact your Relationship Manager in advance. He/she will arrange for necessary approvals.

What does CC mean in transaction? ›

A Credit Card Number, also known as a payment card number or primary account number (PAN), is a unique numeric identifier assigned to a credit card or payment card. It is a crucial component of payment card transactions and serves as a reference to identify the cardholder's account.

What is the CC limit of a bank account? ›

A CC limit or cash credit limit allows you to withdraw money or issue cheque up to the approved CC limit, even if there is no balance in the account. It is a short term credit facility generally for 12 month, which is renewable after every 12 months.

Can you transfer money from CC to bank account? ›

It is possible to use a credit card to transfer money into a bank account by using a cash advance or balance transfer check, but we can't recommend it. Cash advances are risky because of the high interest rates and costly one-time fees. Balance transfers can lead to more debt if they're not handled correctly.

What is the difference between a cash credit account and an overdraft account? ›

An Overdraft is a document-free process. It can even be availed on existing accounts. A cash credit, however, needs a new account. The period of an Overdraft loan may be monthly, quarterly, semi-annually or yearly.

How do I get bank cash credit? ›

Documents Required for Cash Credit Loan
  1. Proof of Identity. A government-issued photo ID and an address proof is required, such as a bank statement or utility bill, of the borrower or the business owner.
  2. Business Proof. ...
  3. Bank Statements. ...
  4. Financial Statements. ...
  5. Collateral Documents. ...
  6. Business Profile & Details.
Feb 10, 2023

What is the difference between cash credit and debit card? ›

The key difference is that debit cards are linked to a bank account and draw directly from those funds (similar to a check). A credit card, on the other hand, does not draw any money immediately and must be paid back in the future, subject to any interest charges accrued.

What is cash credit account and overdraft account? ›

What are cash credit and overdraft? ​​​​​​​Cash Credit is a short-term loan offered to companies, businesses, and financial institutions for their working capital requirements. On the other hand, an Overdraft Facility refers to the credit funding offered by banks to individuals and companies.

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