Meaning of terms and differences
This query is : Resolved
02 July 2012
WHAT IS THE BASIC DIFFERENCE BETWEEN CASH CREDIT & TERM LOAN?
PLEASE EXPLAIN BRIEFLY WITH ITS MEANING?
PLEASE EXPLAIN BRIEFLY WITH ITS MEANING?
03 July 2012
Cash Credit is a facility provided to finance working capital requirements, i.e. to finance Current Assets like Stock and Debtors. Term Loan is given against purchase of specified fixed assets - the repayment is usually in instalments and over a period of time e.g. quarterly payment for 3 years (12 instalments).
Thus Cash Credit utilisation is a Current Liability while Term Loan is non-current. Both limits are separately sanctioned by banks.
Thus Cash Credit utilisation is a Current Liability while Term Loan is non-current. Both limits are separately sanctioned by banks.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Sale of property furniture sale
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Tds on building rent monthly
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
