Working Capital Gap (WCG) & Margin Money Sizing Calculator
How much total working capital funding is required to support my current operations, and how much promoter margin equity must be infused?
Financial Inputs
Total inventory carried on the balance sheet.
Uncollected customer invoices and trade bills.
Minimum operating liquid cash kept in bank accounts.
Vendor advances, prepaid expenses, and GST input tax credits.
Trade payables to suppliers.
Customer order advances and accrued statutory expenses.
Internal long-term capital currently deployed to support current assets.
Working Capital Gap (WCG)
Your company's Working Capital Gap (WCG) is ₹650 Lakh, representing the net operational capital required to support current asset cycles.
Permissible Bank Borrowing Facility
4,25,00,000
Mandatory Promoter Margin (NWC)
2,25,00,000
Key Financial Takeaways
- Your company's Working Capital Gap (WCG) is ₹650 Lakh, representing the net operational capital required to support current asset cycles.
- Institutional lenders require a minimum promoter margin money (NWC) of ₹225 Lakh (25% of TCA), unlocking an eligible bank borrowing limit of ₹425 Lakh.
- Your existing NWC provides a healthy surplus cushion of ₹25 Lakh, supporting rapid credit underwriting.
Frequently Asked Questions
What is Working Capital Gap (WCG)?
Working Capital Gap represents the total financial deficit arising when operational current assets (inventory, receivables) exceed non-bank operational current liabilities (creditors, customer advances). This gap must be funded through a mix of promoter long-term funds (NWC) and bank borrowings.
How can a company bridge a margin money deficit?
A margin deficit can be bridged by infusing fresh equity, retaining business profits, converting unsecured promoter debt into quasi-equity, or raising subordinated long-term term debt.
Calculators on this platform provide indicative mathematical estimations based on industry-standard financial appraisal models (including Tandon Committee Method II, Nayak Turnover Method, and standard compound amortisation).
They do not constitute a formal facility sanction, credit commitment, or legal advisory from SME PAISA or any partner banking/NBFC institution. Final terms, interest margins, security stipulations, and credit sanctions remain strictly subject to formal credit appraisal, audited balance sheet verification, CMA Data assessment, and risk committee approval by institutional lenders.
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