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SOURCES OF CAPITAL

Family & Friends: Relatively Easy However, at a later stage there may be complications So, all the terms and conditions should be agreed before investment Entrepreneur must disclose fairly the pluses and minuses

COMMERCIAL BANKS
Commercial Banks offer different types of Loans
Fund Based Non Fund Based

FUND BASED LOANS


Term Loans Working Capital Loans:
CC Hypo (stock) CC Hypo (Debtors) Bills Discounting Pledge

Some specific loans


Real Estate Loans Working Capital Term Loan Working Capital Demand Loan Discounting of LCs

Non fund based loans


Letter of Credit Bank Guarantee

Lending decision of banks


Five Cs: Character Capacity Capital Collateral Conditions

How to gain the maximum


Approach the bankers who had good experience in your line of exposure Find out the branches who are specifically for advances Present your case in an attractive way Establish your creditworthiness Try to get maximum finance sanctioned

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