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Business Loan Service

1) The document discusses various loan facilities provided including working capital demand loans, term loans, bill discounting facilities, export finance, buyers credit, bank guarantees, and letters of credit. 2) Working capital demand loans are provided instead of cash credits, with interest charged on amounts drawn rather than utilized. Term loans provide long-term funding for growth, expansion, and modernization. 3) Bill discounting facilities fund customer receivables by discounting creditworthy bills. Export finance supports export activities through pre-shipment and post-shipment credits. Buyers credits allow importers to obtain overseas loans based on import bank guarantees.

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119 views4 pages

Business Loan Service

1) The document discusses various loan facilities provided including working capital demand loans, term loans, bill discounting facilities, export finance, buyers credit, bank guarantees, and letters of credit. 2) Working capital demand loans are provided instead of cash credits, with interest charged on amounts drawn rather than utilized. Term loans provide long-term funding for growth, expansion, and modernization. 3) Bill discounting facilities fund customer receivables by discounting creditworthy bills. Export finance supports export activities through pre-shipment and post-shipment credits. Buyers credits allow importers to obtain overseas loans based on import bank guarantees.

Uploaded by

vikash
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Working Capital Demand Loans- we provide working

capital facilities in the form of Working Capital Demand


Loan instead of cash credit facility. The primary or collateral
security will be as mentioned in cash credit facility. Here
also interest is levied on the amount drawn rather than on the
amount utilized.
Term Loans- we caters to the need of long-term funds to enable growth opportunities of business,
capacity expansions, plant modernization and other such requirements. Keeping these
requirements in mind we provide term loans up to acceptable tenor with suitable moratorium, if
required, and repayment options structured on the basis of companies estimated cash flows. These
loans are primarily secured by a first charge on the fixed assets acquired through
theloanamount.Ths loan is against Suitable collateral security.

Bill Discounting Facilities-we provide bill discounting facilities to fund customer's receivables.
This is done by discounting credit worthy bills or receivables and providing credit against that.
This facility is provided for a period of 3-6 months depending upon the tenor of the bill.

Export Finance- we provide finance for export activities in the form of Pre-Shipment Credit
against firm order and or Letter of Credit and Post shipment credit. Credit is available for
procuring raw materials, manufacturing the goods, processing and packaging the goods and
shipping the goods. Finance is provided in Indian or foreign currency depending upon the need of
the borrower.

Buyers Credit- we provide Buyer's credit, it is the credit availed by an Importer (Buyer) from
overseas Lenders i.e. Banks and Financial Institutions for payment of his Imports on due date. The
overseas Banks usually lend the Importer (Buyer) based on the letter of Credit (a Bank Guarantee)
issued by the Importers (Buyer's) Bank.

Bank Guarantees- we provide Bank Guarantee on behalf of our client to various other entities
such as Government, quasi Govt bodies, corporate and so on. A range of guarantees are provided
such as Performance guarantee, financial guarantee, EPCG etc.

Letter of Credit- Apart from fund based working capital facilities we provides a range of Non-
Fund Based facilities such as Letter of credit, Bank Guarantees etc. Letter of Credit is provided to
meet need for trade purchases. These are generally provided for 3-6 months depending upon
customer's trade cycle. Apart from this we provide Import Letter of Credit for importing
machinery or capital goods.
Bank Guarantee

A Bank Guarantee (MT-760) is financial


instrument with a defined value that issued
by a bank with full banking responsibility.
A Bank Guarantee is a written obligation
of the issuing bank to pay a sum on to a
beneficiary on behalf of their customer in
the event that the customer himself does
not pay the beneficiary.

Bank guarantees are quite cost-saving as


compared with bank loans.

We provide Bank Guarantee services for companies operating in various industries. Bank
Guarantee has a SWIFT code MT799 and MT760 and it is the European form of a Stand-By Letter
of Credit. We provide Bank Guarantee Services in a timely manner, while saving the clients from
complicated paperwork. A Bank Guarantee can be issued by us for a period of one year and one
day (minimum being 6 months) and can be extended till the time period of five years. Our Bank
Guarantees are completely simple, assignable and authenticated.

Our letters of credit and bank guarantees are accepted without security or additional guarantees
from other world-class banks.

Our highly qualified team has extensive experience in guarantee transactions, as well as
documentary credit and collection, especially with complex, sophisticated and one-off settlement
arrangements.
Project Report Preparation

Your company seeking financial assistance for


implementation of its business idea is required to
prepare a Project Report covering certain
important aspects of the project as detailed
below:

 Promoters background/experience
 Project location
 Product with capacity to be built up and
processes involved
 Technical arrangements
 Cost of the Project and Means of financing
thereof
 Availability of utilities
 Market Prospects and Selling arrangements

These financial workings could be prepared up to 10 years, incorporating therein the actual for the
last 3 years. i.e. 3+10 years.

The financial reports would include:

• Detailed Cost of Project and Means of Finance, including phased cost of project and phased
means of finance
• Detailed Profitability Workings and status of Net Cash Accruals
• Sources and Disposition of funds – Cash Flow Statement
• Detailed and Exclusive workings for Working Capital Assessment
• Detailed and summarized Balance Sheets for 13 years
• Ratio Analysis on Profitability, DSCR, Financial Leverage, Gearing, Turnover Ratios and all
public finance ratios
• Detailed Break Even Analysis
• A much detailed Sensitivity Analysis - going much beyond Gross Profit, Sales or Raw Material
and incorporating therein sensitivity on DSCR,
• Break Even, ROI, Revised Tax workings, etc. and all on the four different user defined
parameters
• Pre-tax and Post-tax IRR workings – both project and equity IRR and Payback period, etc.

Mentioned below is the standard format for preparing Project Report for Bank Loan:

• Introductory Page
• Summary of the project
• Details about the Promoters, their educational qualifications, work experience, etc.
• Current Status of the Bank, its products and services, target market, and activities.
• Employees, details about the top management, their educational qualifications, work experience,
etc.
• Infrastructure facilities, tools deployed, operational premises, machinery, etc
• Customers, details about them as well as prospective customers
• Regional Operations
• Fiscal acquisitions and tie-ups
• Means of Financing
• Balance Sheet
• Profit and Loss Statements
• Fund Flow Statement
• Chief Ratios
• Break Even Point Evaluations
• Conclusions

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