Blog
Notes from the credit desk.
Articles on bank credit, working capital, financial analysis and MSME finance, written to be read in one sitting.
DSCR explained: the ratio every term loan rests on
What debt service coverage ratio measures, how banks calculate it, the levels they look for, and the mistakes that make a strong-looking DSCR fall apart.
Read the article →Drawing power: why your cash credit limit isn't all yours to use
Your bank sanctioned ₹75 lakh, so why can you only draw ₹60 lakh? A plain-language guide to drawing power, margins and the stock statement, for bankers and business owners.
Read the article →How banks size working capital limits: MPBF and the Tandon methods
Maximum permissible bank finance, the three Tandon Committee methods and the turnover method, explained with one worked example and what each means for the borrower's current ratio.
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