Field notes

Why credit officers pause on working-capital plugs

Hands reviewing printed financial worksheets at a wooden desk

A working-capital plug is not a crime. It becomes a problem when the application narrative claims disciplined receivables control while the bridge quietly absorbs a large, unexplained swing.

Credit officers do not need every plug removed. They need to see that you know what the plug represents. Is it seasonal inventory build ahead of Songkran? A temporary stretch in customer payment terms? A one-off deposit for equipment that sits in current assets until commissioning?

When we audit application files, we ask three questions of every material plug:

  1. Is the amount visible on a schedule, or only buried in a formula?
  2. Does the narrative mention the same driver in plain language?
  3. Does the plug reverse in a period that matches the story you told about recovery?

If any answer is no, expect a follow-up request. Better to write the sentence yourself than to wait for the bank to invent one.