Hi everyone,
We are acting as a consignment agent for a few of the companies and would like to get a CC for 30lakhs from the bank. However, as far as I know, the bank would allow you a CC only if you are buying and selling instead of acting as a consignment agent for anyone since you're effectively getting the goods on the company's account and making the sale on their behalf.
Why we want to do this is because the debtor payment in our sector is around 60-70 days which is high for a normal business. Please let me know your thoughts as to how can the accounting entries be done to show it to the bank.
CAclubindia
