This Monitoring lines of credit presents challenges to financial institutions. This paper utilizes Duration to monitor lines of credit for working capital. It combines the concept of the Cash or Operating Cycle and Duration, to develop a set of indices that will track individual working capital lines of credit. This method allows for aggregation of the indices and can serve as a powerful early warning system for sectoral or industry wide slowdowns.
Credit Line, Working Capital, Duration, Measuring Loan Repayment, Microloans.