ProbizAdvisor, arrange best suitable loan for your business needs & negotiate the most competitive interest rate in the industry.
Types of Loans
- Fund Based
- Working Capital Loan
- Term Loan
- Property Loan (LAP)
- Lease Rent Discounting
- Project Finance
- Non Fund Based
- Letter of Credit
- Bank Guarantee
Working Capital Loan
Working Capital Loans are granted against hypothecation of certain assets.
Purpose
- Seasonal sales fluctuations
- Cash Cushion
- Non-steady cash flow
- For capitalising an opportunity
- Finance Inventory Purchases
- Salaries and Wages
- Unforeseen Problems
- Business Expenses
Rate of Interest
Interest rate ranges from 9% to 15% as charged by respective banks.
Tenure
Upto one year subject to yearly renewal.
Security
- Stock of raw materials
- work-in-process
- finished goods
- Receivables
Criteria’s for working capital loan/ Indicative Terms
- Type of firm / Company – Proprietorship, Partnership, LLP, Private & Public Ltd Co
- Number of years of operation in business & its activity
- Sound financials
- Annual turnover
- Operating cycle
Documents Required
Basic Documents Required (General for all categories)
| Documents | Self-Proprietorship | Public and Private Limited Companies | Partnerships |
| Audit report and audit Financials for the last three years. | Yes | Yes | Yes |
| Income tax return along with computation of income for last three years. | Yes | Yes | Yes |
| CMA report | Yes | Yes | Yes |
| Latest sanction letter and Loan statement (if any). | Yes | Yes | Yes |
| Previous Six months Bank Statements | Yes | Yes | Yes |
| Details of all the present Directors / Partners on company letterhead. | Yes | Yes | Yes |
| Partnership Deed/LLP Agreement | Yes | ||
| Certificate of Incorporation | Yes | ||
| PAN Card | Yes | Yes | Yes |
| Memorandum of Association and Articles of Association | Yes |
Long term Loan can be arranged for expansion, diversification of business towards creation or purchase of assets.
- Purchase of machinery
- Production testing, laboratory equipments
- Buying or constructing factory building
- Computers, printer, furnitures
- Expansion of Business Activities
What we do
To arrange the tem loan, we analyse the requirements of the company, design appropriate moratorium and consider sufficient for repayment with proper justification for the limits.
Rate of Interest
9% to 15% p.a. as charged by respective banks
Tenure
The length of a term loan varies between 1 and 10 years, depending on the loan agreement.
Security
Assets to be acquired like Machinery, Equipment, Factory etc.
Criteria’s for Term Loan
- Type of firm / Company – Proprietorship, Partnership, LLP, Private & Public Ltd Co
- Number of years of operation in business & its activity
- Sound financials
- Type of asset to be created
- Nature of activity to be undertaken – new manufacturing unit / expansion of existing unit
What are the Documents Required?
(Same as Cash Credit & O/D)
A loan against property is one of the best ways to raise money. Loan to Value depends on the property’s market value, requirement, eligibility and repayment capacity which is approx 60% of Market Value.
Purpose
- To start-up a new business
- To expand existing business
- To fill working capital gap
- To get benefit of flexibility through Fixed EMI Facility or as Overdraft Facility
Rate of Interest
Generally around 10% to 15%
Tenure
Maximum tenor for LAP is upto 15 Years
Security to be offered
Mortgage of Commercial/ Residential properties.
What are the criteria’s for LAP?
- Type of firm / Company – Proprietorship, Partnership, LLP, Private & Public Ltd Co
- Number of years of operation in business & its activity
- Sound financials
- Valuation of property provided as security
- Nature of property
- Cash flows generated from the business
Documents Required
(Same as Cash Credit & O/D)
Lease Rental Discounting enables you to encash your current rental cash flows and avail long term loan facility.
Purpose
- Business Expansion
- Business Capital Requirements
- Generating more Assets
- Closure of existing High-cost Debt
Rate of Interest
9% to 11%
Tenure
Upto residual lease period or upto 12 years whichever is lesser
Security to be offered
- Escrow account for monthly rentals
- Underlying leased property
Criteria’s for LRD
- Type of firm / Company – Proprietorship, Partnership, LLP, Private & Public Ltd Co
- Number of years of operation in business & its activity
- Sound financials
- Valuation of property provided as security
- EMI will be calculated basis on certain percentage of rental income
Documents Required
(Same as Cash Credit & O/D)
We understand that getting your business funded is one of the limiting factors in the growth of your business. We at ProbizAdvisor can help you in project funding and recommend you suitable types of funding options with competitive interest rates.
Purpose
It is provided to infrastructure and non -infrastructure sectors for
- New projects
- Expansion, Diversification and Modernisation of existing projects.
Security to be offered
- Project Assets to be acquired like Machinery, Equipment, Land & Building etc
Criteria’s for Project Finance/ Indicative Terms
- Type of firm / Company – Proprietorship, Partnership, LLP, Private & Public Ltd Co
- Number of years of operation in business & its activity
- Sound financials
- Industry Risk
- Creditworthiness of the loan seeking entity
Documents Required
(Same as Cash Credit& O/D)
Non Fund Based
Letter of Credit
A written commitment to pay, by a buyer's or importer's bank to the seller's or exporter's bank
Purpose
- Make easier purchase of goods from international markets
- Build and strengthen business relationships with clients through timely payments
- Explore new business opportunities by removing risk of default
Charges
Will be around 0.75% to 1.5% depending on LC margin, tenor, customer credit rating etc.
Security to be offered
- Stock purchased under LC
- Cash margin
Parties to Letter of Credit?
- Buyer / Importer: Also known as Opener, as he opens the credit
- Bank / Financial Institution: Also known as Issuer, as it opens the letter of credit
- Seller / Exporter: Also known as beneficiary as credit is opened in favour of him.
Documents Required for Letter of Credit?
(https://en.wikipedia.org/wiki/Letter_of_credit)
- Financial documents — bill of exchange, co-accepted draft
- Commercial documents — invoice, packing list
- Shipping documents — bill of lading (ocean or multi-modal or charter party), airway bill, lorry/truck receipt, railway receipt, CMC other than mate receipt, forwarder cargo receipt
- Official documents — license, embassy legalization, origin certificate, inspection certificate.
- Insurance documents — insurance policy or certificate, but not a cover note.
Bank Guarantee
A Bank guarantee is a promise from a bank that the liabilities of a debtor will be met in the event that you fail to fulfil your contractual obligations.
What are benefits of bank guarantee?
(https://www.tradefinanceglobal.com/posts/what-is-a-bank-guarantee/)
- Allows SMEs the ability to reassure end parties the ability to contractually pay and finance larger projects
- Offers financial credibility and creditworthiness which is backed by a bank
- Bonds, Guarantees and Indemnities can normally be issued by Trade Finance Global’s partner network, located in most geographies and markets around the world, specialising in different sectors
- Contracts and terms can be negotiated as guarantees can be paid or issued in different currencies
- Documents required for Bank Guarantee?
Banks in India issue bank guarantee in return for a guarantee fee. Prior to providing bank guarantee, the banker will undertake a diligence of the bank guarantee applicant and may also request for collateral security. The following are some of the documents required by a bank to process a bank guarantee application:
- Request Letter and Counter Indemnity cum Memorandum relating to charge over fixed deposit duly stamped (Franking as per respective State Stamp Act)
- Bank Guarantee text.
- Board Resolution for Private Limited Company / Limited Company
