Packing credit

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How to calculate Drawing Power of a Company availing the Packing Credit Facility.?

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Its a kind of working capital loan... but its free from fixed installments .Bank sanctioning your limit on review of Financial & Security value. So simply you can calculate your DP, but Bank to Bank DP limit fluctuates, normally 17 to 20 % of turn over or 60 to 100 % of your security, also they have a another restriction, they cant offer you more then 75% of costing of your estimation.

I think

Drawing Power calculation as   Total Stock -Creditor - Dead stock = New Stock @ 80 %   Given to Amount 

thanks  & regards

Ramanuj

 

 


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