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the most ticklish difficulty that is faced through the finance manager is the resolve of the amount of working capital requirement at a specific
loan syndication there are two ways of syndication as direct lending and through participation- direct lending regarding direct lending all the
consortium lending as the financial needs of a single unit are more than a single bank can cater to then more than one bank comes together to finance
the emerging financial scenario has made a fierce competition among the companies to raise funds by innovative financial products by the capital and
bank guarantee is one of the facilities which the commercial banks extend in support of their clients in favour of third parties who will be the
the cp introduced in the indian financial market for the recommendations of the vaghul committee has turn into a well-liked debt instrument of the
in the current corporate world this is a common practice of companies along with surplus cash to lend to another company for a short period generally
this is a most familiar form of medium term financing in obtaining plant and vehicles machinery etc in hire purchase transactions the purchaser of
in this scheme non-revolving line of credit is extended to the seller to be utilized inside a stipulated period assistance is provided to
deposits from the public are one of the important sources of finance mainly for fine established big companies along with a vast capital base the
these loans are given by the banker for short periods for an exact activity like financing for a civil contract work as the customer receives payment
bridge loans are obtainable from the banks and financial institutions while the source and timing of the funds to be raised is identified along with
the revolving credit facility will be specified by the banker to the customer through providing specific amount of credit facility for a continuous
it is a commitment by a bank to lend a specific amount of funds on demand identifies the maximum amount of unsecured credit the bank will allow the
working capital is a necessary requirement for any type of business activity banks in india nowadays constitute the main suppliers of working capital
the other source of spontaneous short-term financing is the accrued expenses which arise by the general conduct of business an accrued expense is an
funds produced from operations throughout an accounting period raise working capital by an equivalent amount the two major components of funds
a bill is explained as an unconditional order in writing addressed through one person to the other signed through the person providing it requiring
if a company creates sales to a number of customers on credit terms this will have to wait for two or still three months before its debtors pay that
it is a spontaneous source of finance that is commonly extended to business organization depending on the custom of the competition and trade
change of technology changes in technology commonly leads to improvements in the efficient processing of raw material reduce in wastages more speedy
seasonal variations commodities along with seasonal demand results in raised level of working capital requirement it could be offset through scaling
the working capital needs of a firm are influenced by many factors the important ones are as followsnature of business the working capital necessity
after going through this section you must be capable to know the concept and characteristics of working capital identify with the difference among
the decisions about long-term investment are depends on judgments on future cash flows the improbability of such cash flows and the opportunity cost