📝 One-liners · 66 cards
Working Capital Finance
What is the primary purpose of working capital finance provided by banks?
Working capital finance helps businesses fund their day-to-day operational needs, including the purchase of raw materials, payment of wages, and maintenance of inventory and receivables.
What is the Permissible Bank Finance (PBF) under the second method of lending recommended by Tandon Committee?
75% of Working Capital Gap after borrower contributes 25% margin.
What is the Operating Cycle in the context of working capital assessment?
The operating cycle is the time taken to convert raw materials into cash through the production and sales process, covering raw material holding, work-in-progress, finished goods, and debtor collection periods.
What is the concept of Maximum Permissible Bank Finance (MPBF) in working capital lending?
The maximum credit a bank can extend for working capital purposes.
🔒
Unlock 66 revision one-liners
Interactive flashcard deck — flip every card to drill questions and answers, mark the ones you got wrong, and revise smarter for Working Capital Finance.
🪙
Unlock cost
300 coins
30-day access · re-unlocks free for 30 days