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Bank Guarantee Vs Letter of Credit

Bank Guarantee Vs Letter of Credit

A Bank Guarantee and a letter of credit are the promises from a financial institution. A borrower will actually want to reimburse an obligation to another party, regardless of the account holder’s financial conditions. While different, both bank guarantee and letter of credit, guarantee the third party that if the acquiring party can’t reimburse what […]

MSME Loans FAQs

MSME Loans FAQs

The micro, small and medium enterprises sector is one of the largest providers of employment and industrial output in the country. As much as 45% of industrial production and 40% of India’s exports come from the MSME sector. Hence, the need for business finance is also higher in this sector. So, to avail MSME loan […]

what is lrd loan

A Brief Description of Lease Rental Discounting

The leased properties can source you funds! Yes, you read it correctly. The leased properties can, however, give you funds. It can use for either expansion, purchase of assets or paying off other loans. Such loans can obtain through a debt product called Lease Rental Discounting (popularly known as LRD). Let us learn what is […]

Understanding Business Collateral

Understanding Business Collateral

What is business collateral? If you own a business, you might need funds to run and manage its guarantee effectively. Such funds can be raised by either opting for a secured loan or unsecured loan. You may also need to offer collateral to approve the loan application. But, what exactly is the business collateral? Collateral […]

Debt Funding

Myths About Debt Funding

For starting, expanding or running a business, funds are of prime importance. These funds can be raised in two ways, debt funding and equity funding. Equity Funding is raising finances by selling the shares of a company. Moreover, debt financing occurs when a company borrows money to be paid back at a future date with […]

Machinery Finance

FAQs on Machinery Finance

Updating to new technology plays a huge role in ensuring that your business grows. The businesses have to adapt to the environment. That is they need to update their existing operations. One can opt for purchasing the latest machinery to increase production or can go for expansion. You can avail a machinery loan at attractive […]

Working Capital Finance

FAQs on Working Capital Finance

The businesses face cash crunch frequently. So the major requirements for funding are from Micro, Small and Medium Enterprises (MSMEs). The need for funds can be for paying dues, purchasing assets, running of the business, expansion, etc. So, To overcome such issues, working capital can be the perfect solution. The Working Capital Finance helps in […]

bill discounting

FAQs on Bill Discounting

Bill Discounting is a method of trading. The seller gets the amount in advance before the maturity of the bill at a smaller amount than its actual. That is at a discounted rate. The process can be executed with banks or even with Financial Institutions and NBFCs. The reason for discounting is mostly for working […]

what is bank guarantee

Understanding Bank Guarantee

Bank Guarantee in India Every business needs a backbone of funds. It is for its effective operations and to maintain the competition in the market. Moreover, there are several debt instruments available for funding. While Bank Guarantee used the most. let’s undestand what is bank guarantee? lending institution offers Bank Guarantee (BG) as financial instrument. […]

What is an Overdraft Facility

What is an Overdraft Facility?

Overdraft Facility in India Almost every bank or financial institution in India provides an overdraft facility to its customers. Bank decides the loan amount and interest rate criteria. It may differ and shall depend on the borrower’s profile, repayment capacity, relationship with the banker and also the financial history. Let us understand what is a […]