Affluence Advisory
Quick Summary
Capital is the key factor to expand the horizon of services and resources and sustainable growth of any business. And lack of funding to suffice the operational requirements becomes the reason for business failure. But pitching for investments and getting a deal is not a piece of cake. Company owner
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FAQ :
Private companies in India are prohibited by Section 2(68) of the Companies Act, 2013, from inviting the public to subscribe to their securities, thus limiting their funding sources.
Non-banking sources include raising finance from the capital market, money market, institutional investors, and private equity, as well as through instruments like equity and preference shares, debentures, bonds, commercial papers, and corporate deposits.
Funded facilities involve an initial cash outflow from the bank, such as term loans or cash credit. Non-funded facilities, like bank guarantees or letters of credit, do not initially involve cash outflow from the bank but may later require payment if invoked.
A cash credit facility is a short-term finance, typically up to one year, offered to borrowers against the pledge or hypothecation of stocks (raw materials, finished goods) or book debts. It allows the borrower to maintain a debit balance up to a sanctioned limit.
Project finance is long-term financing for infrastructure and industrial projects, secured by the project's assets and paid from its projected cash flows, often involving a special purpose entity to shield sponsors' other assets.
LAS is a loan advanced against the pledge of securities such as mutual funds, bonds, shares, or insurance policies. The loan limit is based on the value of the pledged securities, and the borrower can still benefit from dividends or price appreciation.
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