Working Capital Facilities · Question

What documents does a bank ask for when sanctioning a working capital limit?

Short answer

Banks usually ask for papers in five groups: who you are, how the business has performed, what the next year looks like, what security you will offer, and the lender's own application and agreement forms. The exact list differs by lender, constitution of the business and size of the limit, so treat any list as a starting point and confirm it with your relationship manager.

In more detail

A first application feels heavier than it is once you see the groups. Gather by category, and keep one folder per category so nothing is chased twice.

Typical document groups and their purpose
Group	What it tells the lender
Identity and constitution papers, registrations and licences	Who the borrower is and that it can legally operate
Past financial statements and tax filings	How the business has actually performed
Bank statements and sales tax returns	Whether turnover on paper matches real transactions
Projections and a working capital assessment	How much funding is needed and how it will be repaid
Security and ownership papers	What the lender can rely on if repayment stalls

Beyond these, most lenders want a list of existing loans with repayment track record, a stock and debtor statement for the recent period, details of main customers and suppliers, and net worth statements of promoters or guarantors.

Prepare projections early

The projection and assessment papers take the longest because they must reconcile with your past numbers. Start them before the rest, and keep assumptions that you can explain in a meeting.

Some papers are only asked in certain cases: partnership deed or company resolutions for the type of entity, valuation and title documents when property is offered, and insurance copies for stock or assets being charged. If you already bank with the lender, some papers may already be on file, though they usually still want current copies.

Do not submit anything you cannot explain. A mismatch between a statement and a tax return generates questions that delay a sanction more than a missing paper does.

Key points

Expect five groups: identity, performance, projections, security and the lender's own forms.
Past financials, bank statements and tax returns are cross-checked against each other.
Projections take the longest to prepare, so begin there.
Property or asset security brings extra title, valuation and insurance papers.
Ask the lender for its checklist because lists differ between lenders.

Who this applies to

First-time applicants for a cash credit or similar limit.
Owners preparing for an annual renewal who want a ready file.
Accountants helping an MSME assemble a loan proposal.

Last reviewed 3 October 2026

This answer is general information, not advice on your particular case. Terms, eligibility, and requirements change, so check the current position with the relevant institution or authority. Lalsar Holdings' financial advisory and financing work is advisory and facilitation only. Lalsar Holdings is not a lender. Sanction and disbursement of any credit facility is at the sole discretion of the partner bank, NBFC, or financial institution involved, subject to their own eligibility criteria and credit policy.