A Stock and Debtors Report (SDR) is a monthly or quarterly statement submitted by businesses to banks/financial institutions showing the value of:
- Stock (Inventory): Raw materials, work-in-progress, finished goods.
- Debtors (Receivables): Amounts due from customers/clients.
Banks use this report to:
- Assess working capital utilization.
- Ensure drawing power (DP) against CC/OD (Cash Credit/Overdraft).
- Monitor whether business is running as projected in CMA data.
In short: SDR = a control document for banks to check if your stock + debtors cover the working capital loan they've sanctioned