Loan arrangement services involve assisting businesses in obtaining various types of loans, including cash credit limit, term loans, and project loans. These loans are essential for businesses to meet their working capital requirements, finance capital expenditures, and expand their operations.
Cash credit limit is a short-term loan facility offered by banks to businesses for their working capital requirements. The loan amount is sanctioned based on the borrower’s creditworthiness and financial performance, and the interest rate is typically higher than that of other loan products.
Term loans are long-term loans provided by banks or financial institutions to businesses for financing their capital expenditures or other long-term requirements. These loans are generally secured and have a fixed interest rate, and the repayment is done in regular instalments over a specific period.
Project loans are specialized loans provided by banks or financial institutions to businesses for financing large-scale projects, such as infrastructure development, industrial construction, and real estate development. These loans have a longer repayment period than term loans and are generally secured by the project assets.
Financial professionals, such as Chartered Accountants and business consultants, can assist businesses in obtaining these loans by evaluating their financial performance, preparing the loan application, and negotiating with banks or financial institutions to secure the best possible terms and interest rates.
By availing loan arrangement services, businesses can obtain the necessary funding to finance their operations and growth while ensuring compliance with regulatory requirements and securing favorable terms and conditions.