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Working capital

This query is : Resolved 
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(Querist)
21 September 2013 Please explain me the relationship, if any. In between working capital and cash credit loan.
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Nikhil Kaushik

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Nikhil Kaushik (Expert)
21 September 2013 cash credit loan is taken to fund the working capital gap.

Assuming 100% gap funding: Current Assets - Current Liabilities = Working Capital Gap=Maximum Cash credit limit available to the business entity.
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Ashwani Narnoli

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Ashwani Narnoli (Expert)
21 September 2013 agree with experts opinion
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