Work out drawing power instantly with clear inputs, formula shown and shareable results.
Drawing power is the amount actually available to draw, derived monthly from current assets rather than the sanctioned limit. Stock is taken net of creditors so that supplier-funded inventory is not financed twice.
Drawing power
DP = [(stock - creditors) + book debts] × (1 - margin)
Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.
Because it moves with actual stock and receivables. A quiet month reduces drawing power even though the limit is unchanged.
Debts beyond the accepted ageing, usually ninety days, and any due from group companies.