Decrese in turnover

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Rahul Prasad (Querist)
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16 September 2014 Dear sir,
If I have Cash Credit A/c With bank and if my business turnover decrease in current year it also effect our Gross Profit and Net profit. Will it Effect Our CC by the Banker?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 September 2014 yes. decrease in turnover should result in reduction in limits.

Rahul Prasad

Rahul Prasad (Querist)
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16 September 2014 What should I suggest to client if they want to need that CC as currrent limit otherwise business will effected.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 September 2014 they should be able to explain to the client the reasons for fall in turnover. and what steps he is going to undertake to increase the turnover in subsequent years to justify current CC limits.

Rahul Prasad

Rahul Prasad (Querist)
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16 September 2014 Ok Thank you sir................

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 September 2014 you are welcome Rahul....

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