Many companies face various business cycle phases which necessitate financial assistance to fuel the growth, or expansion of the business. Acquiring a flexible business funding for corporate purses against unencumbered security will be the ideal solution.
Businesses need ample amount of investment to fund expenditures related to expansion such as adding new lines to their existing products or services. In such a situation, business loans can come in handy as they provide much needed financial assistance to companies so that they can grow more competitive in the chosen markets.Like any other loan, a business loan is a debt which the company is obligated to pay back to the lender within a specific tenure according to the terms and conditions mentioned in the loan agreement.
We are designed to meet financial needs of firms covering various industries. With our loan for business, you can focus on growing your business, while we take care of financing your business’s needs.
The Term Loan is the primary source of short-term debt raised by the companies to leverage sound financial statements and substantial down payments, to minimize monthly payments and total loan costs. The best use of a term loan is for construction; major capital improvements; large capital investments; purchases of existing businesses. It is also called as a term finance which means the money raised through the term loans is generally repayable in regular payments i.e. fixed number of instalments over a period of time
Cash credit facility is for businesses to finance their day-to-day requirement. The finance can be utilized for the purchase of raw materials,for payment of wages of labours, power charges, for storing goods etc. In this facility banks require a security be offered up as collateral on the account in exchange for cash. The credit limit extended on the cash credit account is normally a percentage of the value of the security offered so it helps companies to withdraw money from a bank current account without having credit balance.
Overdraft means the act of overdrawing money. This facility is provided by the bank to withdraw money more than the amount customer holds in his account. The overdraft limit is predefined by the bank depending on the repayment capacity of the customer. Interest is charged on the amount utilised not on the limit sanctioned. Difference between overdraft and cash credit is, it is provided to companies to fulfill their working capital requirement against a collateral but overdraft is provided by the bank to overdraw money from the account.