Finance needs for new business --

This query is : Resolved

Sudhanshu Bhasin (Querist)
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09 November 2008 Hi guys,

I started my business in April 2008 with GTO crossing 2 crore in two quarters.

Now I have a peculiar problem, funding all the activities of the business.

My client needs 30 days credit, but the suppliers arnt ready for credit terms.

I tried convince my client to get done with LC so that I may get some funding from the bank.

My bank is Kotak Mahindra and they have a facility of OD.

They give OD's only to those who have income proof's.

But earlier, I know, many banks give OD's on the basis of transactions.

I can get funds from third source, like local money lenders, but that will make my investments "BLACK MONEY" which I dont want.

But I am just helpless getting fundings done.

Any suggestions ?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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10 November 2008 1)Why are you concluding money from local money lenders can be black only?
2)This is essentially a matter you have to convince with various bankers and negotiate.

Sudhanshu Bhasin

Sudhanshu Bhasin (Querist)
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10 November 2008 The Indian banks only need income proof to lend money.

I am just angry on one thing -:

They run after you day and night for opening account.

Which is actually I lend them the money.

But when I need them to Lend me money, they ASK only and only DOCS.

I dont understand, a turnover of 2 crore also not convincing for the banks ?

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S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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10 November 2008 There is no point in loosing patience over a matter you have no control. Mere turnover doens not mean any thing unless you satisfy the project viability. About the rating of your account they have very right. Af ter all they are also answerable to so many people. THe only way therefore is convince.

Sudhanshu Bhasin

Sudhanshu Bhasin (Querist)
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10 November 2008 How do I convince them ?

Its so difficult to do business in our country.

THIRD WORLD

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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10 November 2008 I agree; doing business is not cake-walk.