Financial Inputs
Inventory, debtors, cash, bank balance, etc.
Trade creditors, bills payable, outstanding expenses.
Working Capital Gap Formula:
Gap = Total Current Assets (TCA) - Other Current Liabilities (OCL)
Gap = Total Current Assets (TCA) - Other Current Liabilities (OCL)
METHOD 1 (25% of WCG Margin)
Working Capital Gap:
Borrower Contribution (25%):
METHOD 2 (25% of TCA Margin)
Working Capital Gap:
Borrower Contribution (25% of TCA):
• Core Difference:
Method 1 finds funding limit assuming the client leverages credit from suppliers. Method 2 requires a much higher margin contribution from long-term capital resources, providing a stronger **Current Ratio (Min 1.33)**.
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Enter valid figures above. Current Assets must remain larger than liabilities to map out funding.
