Understanding the Difference Between WCDL Disbursement and Rollover

access_time 2025-04-20T06:39:02.81Z face CA N Raja
Understanding the Difference Between WCDL Disbursement and Rollover Vinu: Hey Manu, I’ve been trying to understand the difference between WCDL disbursement and rollover. Can you walk me through it? Manu: Of course, Vinu! Let’s start from the basics. WCDL stands for Working Capital Demand Loan. It’s ...

Margin Money Against LC/BG: A Hidden Line in the Balance Sheet

access_time 2025-04-16T08:04:36.654Z face CA N Raja
Margin Money Against LC/BG: A Hidden Line in the Balance Sheet Vinu: Manu, I’ve seen something called “margin money against LC or BG” in a balance sheet. What does that mean? Manu: Great question, Vinu. When a company avails a Letter of Credit (LC) or Bank Guarantee (BG) from a bank, the bank usuall...

Cash Credit vs. WCDL: Understanding the Key Differences & Smart Usage

access_time 2025-04-16T06:54:04.452Z face CA N Raja
Cash Credit vs. WCDL: Understanding the Key Differences & Smart Usage Vinu: Hey Manu, I keep hearing about Cash Credit (CC) and Working Capital Demand Loans (WCDL). Can you explain the difference between them? Manu: Of course, Vinu. Both CC and WCDL are used to finance a company’s working capital ne...

Crystallisation of Floating Charge in Banking

access_time 2025-04-02T07:08:19.332Z face CA N Raja
Crystallisation of Floating Charge in Banking Vinu: Manu, I’ve heard about floating charges and fixed charges in banking. But what exactly is a floating charge? Manu: Good question, Vinu! A floating charge is a security interest taken by a bank or lender over a pool of changing assets. These assets ...

Understanding Book Debt Statements: How Banks Use Your Receivables for Loan Limits

access_time 2025-03-28T04:53:59.883Z face CA N Raja
Understanding Book Debt Statements: How Banks Use Your Receivables for Loan Limits Vinu: Manu, what is this Book Debt Statement that businesses submit to banks? I came across this term in a loan document. Manu: Good question, Vinu. A Book Debt Statement is a list of amounts receivable from customers...