02 July 2013
Dear All, One Of Our Client Want To Take Loan From Bank For Business Purpose. He Want To Know How Much Can He Will Get On The Basis Of His Financial Statements. Now, My Question Is - (1)On Which Basis Of Financial Statemets, Commercial Banks Provide Loan To An Applicant i.e. Whether It Is Sales Or Net Profit Or Capital Or Assets ?
(2)I Found After Observing His Last 5 Years Financial Statements That His Turnover Is Increasing Rapidly But Capital Remain Constant i.e Net Profit And Drawings Are almost Same Every Year. ..Will It Has Any Impact On Decision Of Bank While Deciding Loan Amount ? Thanks and Regards.
CAclubindia
