What is the margin stipulated on the item “Margin money for working capital”?

Question

Each item in project cost has a minimum margin stipulated by banks while arriving at term loan eligibility.

georgei assi · Answer

One hundred percent margin

Vinod Jetley · Answer

100 per cent

Malik Khalid Mahmood · Answer

Its30% as per prevailing rate

مستخدم محذوف‎ · Answer

One hundred percent of what I think

Asim Azaldeen Abdalrahman Mhammed · Answer

Agreed with answer one hundred per cent

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN · Answer

A tricky question: The margin means the borrowers share in full towards working capital. It can even be more than100%!!!

SAIF Rehman · Answer

Margin on working capital should be based on RISK associated with that item of WC. Normally we charge more margin if the risk factor is involve in this. the other factors should be consider debtors receiving period. inventory holding period, and bad debts etc.

DINESH MADAN CHAND · Answer

working capital is the cash reserve, funds that a business requires to manage its short-term financial goals - the daily running cost.

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What is the margin stipulated on the item “Margin money for working capital”?

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