The credit limit depends on total cash balance or profitability of your company. As a general metric, assume a maximum of 20% of annual profits, or 3% of total cash balance in Fixed deposit or Mutual Fund or Current bank account.
Let's say you are a startup, and you recently raised 10 Crores. In that case, you might qualify for 30 Lakhs of credit limit.
Let's say that you are a profitable enterprise with Rs. 50 Lakhs of profits. In that case, your company might qualify for Rs. 10 Lakhs of credit limits.
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