Every Term Your Bank Uses — Explained
DSCR, CMA Data, MPBF, TOL/TNW, CGTMSE, FACR, NPA — banks evaluate your proposal using ratios and metrics most MSME owners never encounter in daily business. This glossary explains every term in plain language, with Karnataka context.
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Working Capital
Finance FundamentalsFunds used to finance day-to-day operations — purchasing raw materials, paying wages, and financing receivables before customer payments are collected. Working Capital = Current Assets minus Current Liabilities. Banks provide working capital through Cash Credit limits, Overdraft facilities, and Bill Discounting. The MPBF calculation determines the maximum bank finance available for working capital.
Working Capital Cycle
Finance FundamentalsThe time taken for a business to convert raw material (or cash) into finished goods, sell those goods, and collect the resulting receivable — completing the cycle back to cash. A longer working capital cycle means more capital is tied up in operations and a higher CC limit may be required. Industries like construction and export have long cycles (90–180 days); retail and food service have short cycles (7–30 days).
Know the Terms. Now Let Us Handle the Numbers.
MSME Central prepares DPRs and CMA data that meet every ratio threshold banks require — and submits them to the right bank desk in Bengaluru and Karnataka.