Korea Working Capital vs Facility Loan Cash Flow Calculator

Compare Korean working-capital and facility-loan limits, rates, draw and spending dates, grace periods, repayment, fees, 24-month cash, DSCR, and stress.

Every default is illustrative

Replace limits, rates, draw dates, first-payment timing, and costs with the actual offer, agreement, and guarantee documents.

Current cash and reserve

Enter cash genuinely available and the internal reserve to preserve after spending.

KRW

Cash genuinely available to the business at the start of Month 1.

KRW

An internal liquidity target, not a statutory or lender threshold.

Short-term working use

Connect inventory, purchases, or payroll need to its spend and recovery timing.

KRW

Enter actual cash need for inventory, inputs, payroll, or receivable gaps.

months
months

Internal planning horizon for inventory sales or receivable collection.

Long-term facility use

Enter the spend month and cash-recovery horizon for equipment, plant, premises, vehicles, or IT.

KRW

Enter actual cash cost for equipment, plant, premises, vehicles, or IT.

months
months

Internal horizon over which operating benefits are expected to recover the investment.

Borrowing allocation

Split the borrowing target between facility and working loans, then apply each offered limit.

Facility 70% · Working 30%

Borrowing target

KRW 230,000,000

Working desired → executable

KRW 69,000,000 → KRW 69,000,000

Facility desired → executable

KRW 161,000,000 → KRW 161,000,000

Funding surplus

KRW 0

Working-capital loan offer

Enter the actual short-term limit, rate, draw month, and confirmed costs.

KRW

Use the executable amount in the actual offer, not an advertised maximum.

%
months
months

For bullet repayment, all pre-maturity months remain interest-only regardless of this field.

months

The first payment is assumed to occur one month after draw.

KRW

Enter the quoted cash amount instead of estimating a fee rate.

KRW

Cash costs such as stamp, appraisal, security, or advice, excluding the guarantee fee.

Facility loan offer

Enter the actual long-term facility limit, rate, draw month, and confirmed costs.

KRW

Use the executable amount in the actual offer, not an advertised maximum.

%
months
months

For bullet repayment, all pre-maturity months remain interest-only regardless of this field.

months

The first payment is assumed to occur one month after draw.

KRW

Enter the quoted cash amount instead of estimating a fee rate.

KRW

Cash costs such as stamp, appraisal, security, or advice, excluding the guarantee fee.

Monthly operating cash, DSCR, and stress

Enter cash generation before debt service and an internal warning line, then combine operating-cash and rate stress.

months

Twelve to 120 months; the roadmap MVP default is 24 months.

KRW

Recurring cash flow before debt service; negative input is allowed for a deficit.

×

A user-set warning line, not a lender approval threshold.

%
pp

Results

Planning DSCR is monthly operating cash flow divided by monthly debt service and can differ from lender underwriting definitions.

Total executable principal

KRW 230,000,000

Target KRW 230,000,000

Base minimum cash

KRW 48,054,833

Month 3

Base minimum DSCR

1.647334×

0 months below target

Stress minimum DSCR

1.173908×

Minimum cash KRW 41,556,500

Items to review first

  • At least one stress-case debt-service month falls below the internal DSCR target.
  • Combined monthly debt service steps up after a grace period ends.

Funding and purpose alignment

Required funding with reserveKRW 330,000,000
Total funding sourcesKRW 330,000,000
Actual facility share70%
Facility share of stated uses66.666667%
Facility purpose-excess referenceKRW 0
Working purpose-excess referenceKRW 0

Timing and recovery alignment

Working draw lead0 months
Facility draw lead1 months
Working term minus recovery24 months
Facility term minus recovery12 months
Working maturity monthMonth 37
Facility maturity monthMonth 86

Lifetime loan summary

Lifetime comparison of working-capital and facility loans
MetricWorking capitalFacility
Executable principalKRW 69,000,000KRW 161,000,000
First paymentKRW 373,750KRW 697,667
First principal-paying amountKRW 2,464,659KRW 2,436,976
Peak monthly paymentKRW 2,464,659KRW 2,437,006
Lifetime interestKRW 7,475,000KRW 33,270,160
Lifetime repaymentKRW 76,475,000KRW 194,270,160
Interest + guarantee + other costsKRW 8,975,000KRW 36,270,160

Base vs combined stress

Base and combined operating-cash and rate stress comparison
MetricBaseStress
Monthly operating cashKRW 8,000,000KRW 6,000,000
Minimum month-end cashKRW 48,054,833KRW 41,556,500
Ending projected cashKRW 126,059,847KRW 72,007,145
Minimum DSCR1.647334×1.173908×
Months below target DSCR016
Peak monthly debt serviceKRW 4,856,332KRW 5,111,132
Projected debt serviceKRW 91,440,153KRW 97,492,855
First negative-cash monthNoneNone
Stress lifetime-interest increaseKRW 15,901,564
Projected debt-service increaseKRW 6,052,702
Peak monthly increaseKRW 254,800

Monthly cash flow

Loan proceeds arrive in the draw month and debt service begins one month later.

Showing all 24 months

Monthly base and stress cash flow for working-capital and facility loans
MonthOpening cashOperating cashLoan inflowPurpose spendDraw costsBase debt serviceBase DSCRBase ending cashStress debt serviceStress DSCRStress ending cash
1KRW 100,000,000KRW 8,000,000KRW 69,000,000KRW 100,000,000KRW 1,500,000KRW 0Not availableKRW 75,500,000KRW 0Not availableKRW 73,500,000
2KRW 75,500,000KRW 8,000,000KRW 161,000,000KRW 0KRW 3,000,000KRW 373,75021.404682×KRW 241,126,250KRW 488,75012.276215×KRW 237,011,250
3KRW 241,126,250KRW 8,000,000KRW 0KRW 200,000,000KRW 0KRW 1,071,4177.466747×KRW 48,054,833KRW 1,454,7504.12442×KRW 41,556,500
4KRW 48,054,833KRW 8,000,000KRW 0KRW 0KRW 0KRW 1,071,4177.466747×KRW 54,983,416KRW 1,454,7504.12442×KRW 46,101,750
5KRW 54,983,416KRW 8,000,000KRW 0KRW 0KRW 0KRW 3,162,3262.529783×KRW 59,821,090KRW 3,545,6591.69221×KRW 48,556,091
6KRW 59,821,090KRW 8,000,000KRW 0KRW 0KRW 0KRW 3,151,0002.538877×KRW 64,670,090KRW 3,530,8481.699308×KRW 51,025,243
7KRW 64,670,090KRW 8,000,000KRW 0KRW 0KRW 0KRW 3,139,6742.548035×KRW 69,530,416KRW 3,516,0381.706466×KRW 53,509,205
8KRW 69,530,416KRW 8,000,000KRW 0KRW 0KRW 0KRW 3,128,3492.557259×KRW 74,402,067KRW 3,501,2271.713685×KRW 56,007,978
9KRW 74,402,067KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,856,3321.647334×KRW 77,545,735KRW 5,111,1321.173908×KRW 56,896,846
10KRW 77,545,735KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,845,0061.651185×KRW 80,700,729KRW 5,096,3211.17732×KRW 57,800,525
11KRW 80,700,729KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,833,6801.655054×KRW 83,867,049KRW 5,081,5101.180751×KRW 58,719,015
12KRW 83,867,049KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,822,3551.65894×KRW 87,044,694KRW 5,066,7001.184203×KRW 59,652,315
13KRW 87,044,694KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,811,0291.662846×KRW 90,233,665KRW 5,051,8891.187675×KRW 60,600,426
14KRW 90,233,665KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,799,7031.66677×KRW 93,433,962KRW 5,037,0791.191167×KRW 61,563,347
15KRW 93,433,962KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,788,3771.670712×KRW 96,645,585KRW 5,022,2681.194679×KRW 62,541,079
16KRW 96,645,585KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,777,0521.674673×KRW 99,868,533KRW 5,007,4571.198213×KRW 63,533,622
17KRW 99,868,533KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,765,7261.678653×KRW 103,102,807KRW 4,992,6471.201767×KRW 64,540,975
18KRW 103,102,807KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,754,4001.682652×KRW 106,348,407KRW 4,977,8361.205343×KRW 65,563,139
19KRW 106,348,407KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,743,0741.68667×KRW 109,605,333KRW 4,963,0261.20894×KRW 66,600,113
20KRW 109,605,333KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,731,7491.690707×KRW 112,873,584KRW 4,948,2151.212558×KRW 67,651,898
21KRW 112,873,584KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,720,4231.694763×KRW 116,153,161KRW 4,933,4041.216199×KRW 68,718,494
22KRW 116,153,161KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,709,0971.69884×KRW 119,444,064KRW 4,918,5941.219861×KRW 69,799,900
23KRW 119,444,064KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,697,7711.702935×KRW 122,746,293KRW 4,903,7831.223545×KRW 70,896,117
24KRW 122,746,293KRW 8,000,000KRW 0KRW 0KRW 0KRW 4,686,4461.707051×KRW 126,059,847KRW 4,888,9721.227252×KRW 72,007,145

Official-reference boundary

The loan-information boundaries in Article 19 of Korea's Financial Consumer Protection Act, Article 13 of its Enforcement Decree, and the FSC business-loan comparison route were checked on 2026-08-09. This result does not determine consumer classification, disclosure compliance, approval, eligible use, or a statutory DSCR.

Related calculators

Match the loan purpose to the cash-flow clock

A working-capital loan usually supports short-cycle cash needs such as inventory, inputs, payroll, rent, or a receivables gap, while a facility loan usually supports longer-lived assets such as machinery, a plant, premises, vehicles, a production line, or business IT.
The useful comparison is therefore broader than the quoted interest rate.
A plan must also connect each use of funds to the draw date, spending date, grace period, repayment pattern, maturity, fees, and the period in which cash is expected to return to the business.

This Korea-specific calculator starts with available cash, a minimum reserve, and the two stated funding uses.
It allocates the borrowing target between the facility and working-capital slots, applies each user-entered limit, builds two amortization schedules, and places both loans in a 24-month cash projection.
The result shows funding gaps, purpose-alignment references, minimum cash, peak debt service, an internal planning DSCR, and a combined operating-cash and rate stress case.

What this result does not decide

The output does not determine policy-fund eligibility, guarantee availability, credit approval, collateral value, an eligible use of proceeds, a lender’s DSCR, or the best product.
Every rate, limit, fee, date, and operating assumption is either an editable illustration or a value entered by the user.
Make the final decision from current product documents, a written lender proposal, the guarantee terms where relevant, and professional legal, tax, and accounting advice.

Working capital and facility capital solve different timing problems

Planning differences between working-capital and facility loans
Planning questionWorking-capital loanFacility loan
Typical cash useInventory, materials, payroll, rent, or receivables timingEquipment, plant, premises, vehicles, production line, or IT
Cash-return logicShort operating cycle or collection of receivablesLonger productivity, capacity, revenue, or cost-saving recovery
Date to verifyWhether proceeds arrive before the short-term cash gapContract deposits, progress payments, delivery, and staged draws
Term to verifyWhether maturity outlasts the operating recovery horizonWhether repayment is supportable before investment recovery
Evidence to verifyPermitted use, invoices, payroll or inventory evidence, and post-use reportingEligible asset, quotation, contract, payment evidence, inspection, and registration

These labels are planning categories, not a ruling on any institution’s contract.
The same asset or payment can be treated differently depending on the product, guarantee, evidence, draw structure, and post-disbursement controls.
Confirm the permitted use in the actual Korean loan agreement before treating an amount as an executable source of funds.

Build inputs from evidence rather than a desired answer

Funding uses and cash reserve

  • Use only owner cash that is genuinely available to the business
  • Set the minimum cash reserve independently from the purchase budget
  • Support working-capital need with a purchase, payroll, collection, and operating-cycle schedule
  • Support facility need with quotations, contracts, progress payments, and incidental cash costs
  • Enter conservative spending and recovery months when timing remains uncertain

Loan terms and execution costs

  • Enter the executable limit in the written offer, not an advertised maximum
  • Use the applicable nominal annual rate and verify whether it can reset
  • Match total term, grace months, repayment method, and draw month to the proposal
  • Enter the confirmed guarantee-fee cash amount instead of estimating a universal rate
  • Add appraisal, registration, stamp, advisory, and other cash costs without duplication

Operating cash flow is not revenue

Enter recurring monthly cash generated by operations before principal and interest, after ordinary cash operating outflows.
Reconcile sales to collections and subtract inventory purchases, payroll, rent, utilities, tax cash payments, maintenance, and the normal increase in working capital.
Do not count the facility investment itself as recurring operating cash, and do not repeat the same loan payment inside the operating figure because the model deducts scheduled debt service separately.

How the borrowing target and allocation are calculated

The model first adds the entered working-capital and facility uses, adds the minimum reserve, and subtracts available cash.
The facility-share slider then divides that financing need into desired facility and desired working principals.
Each executable principal is the lower of the desired amount and the corresponding user-entered limit, so a shortfall in one slot is not silently transferred to the other slot.

Financing need

Stated uses = working use + facility use
Required funding = stated uses + minimum reserve
Financing need = max(required funding − available cash, 0)

Executable principal

Desired facility = financing need × facility share
Facility principal = min(desired facility, facility limit)
Working principal = min(desired working, working limit)

A funding gap is required funding minus available cash and both executable principals when the result is positive.
A funding surplus is the opposite positive balance.
Facility purpose excess and working purpose excess are references that flag when allocated proceeds exceed the entered use bucket; they are not a legal classification or permission to redirect funds.

Grace periods and repayment methods change the monthly shape

Both loan slots support equal-payment, equal-principal, and bullet repayment.
During an interest-only grace period, the model charges monthly interest on the opening principal and begins principal repayment afterward.
The first cash payment is placed in the month after the entered draw month, and the final scheduled installment settles any remaining rounded principal.

Repayment methods and their cash-flow effects
MethodPrincipal patternMonthly cash patternReview point
Equal paymentLevel combined payment after graceRelatively stable budget, with interest falling over timePayment step-up when grace ends
Equal principalLevel principal after graceLargest first amortizing payment, then declining paymentsHighest early cash burden
BulletPrincipal remains outstanding until maturityInterest-only cash burden followed by one large principal paymentMaturity liquidity and refinancing risk

Schedule formulas

Monthly rate r = nominal annual rate ÷ 100 ÷ 12
Amortizing months n = total term − grace months
Equal payment = P × r × (1+r)n ÷ ((1+r)n − 1)
Equal principal = P ÷ n, plus interest on opening balance

Amounts are rounded to whole won for each displayed monthly row.
The model does not reproduce daily accrual, reset dates, holidays, late charges, prepayment, extensions, refinancing, revolving draws, or lender-specific rounding.
Replace it with the lender’s official repayment schedule before execution.

Read minimum cash and planning DSCR together

Month-end cash

Each month begins with the prior closing balance, adds user-entered operating cash and any loan draw, and subtracts the scheduled working or facility spending, upfront loan costs, and debt service.
A negative balance identifies a direct cash shortfall, while a positive balance below the minimum reserve identifies a buffer breach.

Internal planning DSCR

For a month with debt service, planning DSCR equals the entered operating cash flow divided by that month’s combined principal and interest.
Months without debt service do not receive a ratio.
The calculator reports the lowest ratio and the number of months below the user-entered warning line.

Draw and recovery alignment

Draw lead is draw month minus spend month, so a negative value warns that the cash use occurs before the loan arrives.
Term gap is the loan term minus the entered recovery horizon, so a negative value warns that contractual maturity arrives before the expected cash recovery period ends.

Why this DSCR is only an internal signal

A Korean lender or guarantee institution can use different income, tax, existing-debt, lease, capital-expenditure, owner-withdrawal, measurement-period, and covenant definitions.
The displayed target of 1.30× is an editable user assumption, not a statutory threshold, approval rule, or common promise across institutions.
Ask the reviewing institution for its definition and reconcile the same period and debt perimeter.

Worked example using the editable defaults

The sample assumes KRW 100,000,000 of available cash, KRW 30,000,000 of minimum reserve, KRW 100,000,000 of working-capital need, and KRW 200,000,000 of facility need.
Required funding is therefore KRW 330,000,000 and the borrowing target is KRW 230,000,000.
A 70% facility allocation produces KRW 161,000,000 of facility principal and KRW 69,000,000 of working principal, both within the entered limits.

Default working-capital and facility-loan schedule results
MetricWorking loanFacility loan
Executable principalKRW 69,000,000KRW 161,000,000
First paymentKRW 373,750KRW 697,667
First principal-paying paymentKRW 2,464,659KRW 2,436,976
Peak monthly paymentKRW 2,464,659KRW 2,437,006
Lifetime interestKRW 7,475,000KRW 33,270,160
Lifetime repaymentKRW 76,475,000KRW 194,270,160
Interest, guarantee, and other costsKRW 8,975,000KRW 36,270,160

With KRW 8,000,000 of monthly operating cash before debt service, the base case reaches minimum cash of KRW 48,054,833 in month 3.
Peak combined debt service is KRW 4,856,332 in month 9, the lowest planning DSCR is 1.647334×, 24-month debt service is KRW 91,440,153, and projected ending cash is KRW 126,059,847.
These figures demonstrate the formula only and are not market averages, quotes, or a recommended capital structure.

Stress operating cash and interest rates at the same time

The downside case reduces monthly operating cash by the entered percentage and adds the entered percentage-point shock to both nominal annual rates.
It rebuilds the repayment schedules rather than merely applying a percentage to the base payment.
This exposes the combined effect of weaker cash generation and higher variable-rate debt service during grace-period step-ups.

Base and stress results for the default example
MetricBase25% cash downside + 2%p rate shock
Monthly operating cashKRW 8,000,000KRW 6,000,000
Minimum month-end cashKRW 48,054,833KRW 41,556,500
Peak monthly debt serviceKRW 4,856,332KRW 5,111,132
Minimum planning DSCR1.647334×1.173908×
24-month debt serviceKRW 91,440,153KRW 97,492,855
Ending projected cashKRW 126,059,847KRW 72,007,145

The default stress DSCR of 1.173908× falls below the sample 1.30× internal target even though cash remains positive throughout the 24-month projection.
That distinction matters because a business can avoid immediate insolvency while still losing its desired covenant or safety margin.
Run additional cases for delayed sales, customer non-payment, cost overruns, tax payments, equipment downtime, a later draw, and an earlier grace-period end when those risks are material.

A practical review sequence before signing

  1. Reconcile cash uses. Put each invoice, contract payment, payroll run, and reserve item on a month-by-month schedule.
  2. Verify available cash. Exclude restricted cash and funds required for tax, household, or other obligations.
  3. Enter two written offers. Use executable limits, rates, grace periods, repayment methods, dates, and cash fees.
  4. Move the allocation slider. Compare the funding gap, purpose-excess references, interest, monthly payment, and maturity alignment together.
  5. Inspect every step-up month. Check the first principal-paying installment for each loan and the combined peak payment.
  6. Reconcile operating cash. Tie the monthly input to a conservative collections and expense forecast rather than accounting profit alone.
  7. Stress timing and terms. Test weaker cash generation, higher rates, delayed draws, earlier spending, and longer recovery.
  8. Replace the model with contract schedules. Verify the lender’s payment table and obtain advice before execution.

Korean legal and disclosure boundary checked on August 9, 2026

Article 19 of Korea’s Financial Consumer Protection Act, law ID 013704 and current master text MST 277247 effective January 2, 2026, lists important loan information within the explanation-duty framework.
The loan items include the interest rate and whether it can change, early-repayment charges, repayment amount, rate and timing, security rights, and total principal, interest, and fees.

Article 13 of the Enforcement Decree, law ID 014044 and current master text MST 285715 effective April 28, 2026, adds matters such as contract termination, possible credit impact, delinquency interest and consequences, contract period, and extension.
The Financial Services Commission also announced individual-business loan comparison disclosure on December 23, 2024, noting that products can differ by working or facility purpose, rate, and repayment method.
These sources support the information boundary of the calculator; they do not establish that every business user is a general financial consumer or that this page satisfies a provider’s statutory explanation duty.

Important exclusions

  • No eligibility, credit, collateral, guarantee, policy-fund, or approval prediction
  • No permitted-use determination, evidence review, post-use compliance, or legal opinion
  • No tax, VAT, capitalization, depreciation, accounting, subsidy, or grant treatment
  • No existing debt, revolving facility, lease, overdraft, prepayment, delinquency, or refinancing model
  • No lender-specific DSCR, covenant, floating-rate reset, day-count, or rounded payment schedule

Official sources

Frequently asked questions

Should I always maximize the facility-loan share because its term may be longer?

No.
A longer term may reduce monthly debt service but can increase lifetime interest, and the intended facility use still must fit the product’s eligible-use and evidence rules.
Compare purpose, executable limit, timing, fees, repayment burden, and recovery horizon together.

Why does the calculator not move an unused facility allocation to working capital automatically?

Automatic transfer can hide that the requested amount exceeds one offer or purpose bucket.
Keeping the shortfall visible lets the user deliberately change the slider, cash reserve, project scope, or actual proposal and then recheck permitted use.

Does a positive ending balance prove that the loan is affordable?

No.
The projection can omit tax, existing debt, owner distributions, replacement capital expenditure, seasonal volatility, and unexpected working-capital growth.
Review the minimum month, every grace-period step-up, the reserve line, stress DSCR, and omitted obligations rather than the ending balance alone.

Is the guarantee fee already included in the interest rate?

Not in this model.
Interest is calculated from the nominal rate, while guarantee and other costs are entered as separate cash amounts and included in total financing cost.
Check whether the actual proposal deducts fees from proceeds, finances them, charges them periodically, or refunds any portion.

Can I use the 1.30× target as a Korean lender approval threshold?

No.
It is only the editable internal warning line in the illustration.
A lender or guarantee institution may use another definition, period, debt perimeter, or requirement, so obtain the institution’s written criteria.

Compare the complete cash-flow structure before choosing the mix

Enter two real proposals, align draw and spending dates, inspect the grace-period step-up, and keep enough cash under both the base and downside cases.
Save the inputs beside the supporting quotations and replace the illustration whenever a limit, rate, fee, or project schedule changes.