ToolCredit Operations

Drawing Power & Margin Optimizer

Simulate how inventory variations and banker's margins impact your actual available credit limit.

About this Tool

Purpose: A specialized simulator to calculate Drawing Power (DP) based on stock and debt levels. It allows credit officers to optimize margins and verify if the collateral supports the sanctioned limits.

Read Theory

Credit Managers Relationship Managers Loan Officers

Inventory & Receivables (in Lacs)

Raw Materials

₹

RM Margin (%)

25%

Work in Progress (WIP)

₹

WIP Margin (%)

50%

Finished Goods (FG)

₹

FG Margin (%)

25%

Book Debts (Receivables)

₹

Debtors Margin (%)

40%

Trade Creditors (to be deducted)

₹

Total Drawing Power (DP)

₹ 1,920.00 L

DP from Stocks:₹ 1,200.00 L

DP from Debtors:₹ 720.00 L

Strategic Insights

Your margin structure appears balanced. Maintain healthy inventory turnover to optimize Drawing Power.

Collateral Utilization

Inventory Funded52%

Receivables Funded60%