Business Loan consultant in Mumbaiadmin
Loanvenue Services offers a comprehensive range of services for business set up including Entity Setup, Talent Solution, Accounting & Compliance, Consulting and Assurance Services and guide to customer.
Company equally is strong in providing the financial solutions to various SMEs in India through various financial institution and Banks. Our Financial solution products have a wide range for various business needs.
Cash Credit facility is given against stock, so if any company is require to hold inventory in volume and for a long period, Cash Credit facility helps in keeping the inventory position. Generally bank finance 75% of the inventory value held by company on a particular day. The other mode of working capital finance is in the form of Book Debts, which is against Sundry Receivables. In all type of industry there is a trend of giving credit to its customer in order to increase the margins and sales. Bank finance 50 – 60 % of these receivables who are below 90 days. Non-funded instruments comprise letters of credit (inland and overseas) as well as bank guarantees (performance and financial) to cover advance payments, bid bonds etc.
Type of Finance
There are many types of working capital finance. It is normally in the form of Fund Based Finance and Non Fund Based Finance depending upon the requirement of Industry, Trade and Service Sector. Fund based facilities include cash credit, demand loan and bill discounting. Demand loans are considered also under the FCNR (B) scheme.
State Bank of India
Bank of Baroda
Central Bank of India
Further these loans attract collateral security depending upon size and profile of the company. Some times it may require minimum of 75% and maximum 100% collateral as well depending upon the promoters, company’s profile and the industry. Collateral security should be in the form of Immovable Property either Residential Flat / Commercial Office / Shop. It should be in the name of Promoter, Director or any other related person, whose guarantee would also be required
Rate of Interest is subject to Company’s financial and managerial strength, Security offered and other factors roughly ranges from 11.05 to 14.50 %
Working Capital requirement is assessed based on Next years Projections
Maximum funding will be 20% of Projected turnover of Next Year subject to working capital cycle
For take over proposal, firm should be in profit for last two years