Types of financing, availability of loan for a business, features of loan for a business, ways of loan for business, financial management, innovative financial services

1. TYPES OF FINANCING
Roll No. 55 ARSHI NAIK
Roll No. 56 SAUMYA GUPTA
Roll No. 57 ROSHNI TIWARI
Roll No. 58 TUSHAR RAI
Roll No. 59 KIRAN KANK
Roll No. 61 GAURESH PASTE
F.Y. BAF

2. Meaning of finance
Management Money and other Valuables
Easily converted
Cash
Concerned Maintanance and creation Economic values and Wealth
Science Describing
Creation and the study of money
Banking
Credit
Investment
Management
Liabilities

3. Features of Finance
 Channelizing Funds
 Acquisition, allocation and utilization of funds.
 Maximization of shareholders wealth
 Future decision making
 Investment opportunities

4. The Purpose of Finance
“Different source of finance have different
implications for a business,
So it’s important that the most appropriate
method of finance is chosen for the Purpose
that business has mind.”

5. History of Finance
If we trace the origin of finance, there is evidence to
prove that it is as old as human life on earth. The word
finance was originally a French word. In the 18th century, it
was adapted by English speaking communities to mean
“the Management of money.” since then, it has found a
permanent place in the English dictionary. Today, finance is
not merely a word else has emerged into an academic
discipline of greater significance. Finance is now organized
as a Branch of Economics.

6. Financing the company
Finance Manager

7. TYPES of FINANCING
Angel Investor’s

8. Angel Investors
Angel Investors [Equity Investors] Capitals for Business Startups Interested in
Businesses with Promising Growth Potential
Requirement Share Ownership and Control
Demand Ownership and Control Depends Amount of Money Invested
Precaution:- Pushed Aside in our OWN Company
May Allow Larger Share of Ownership Desire Exit Business in Short Term
Appoint Themselves CHAIRMAN Highest Shareholder OR Better Experience in the Business

9. Mezzaine Financing

10. Mezzaine Financing
Mezzaine Financing
Debt Equity Financing
Right to Convert Equity Interest
Mezzaine
debt
Equity
Instrument Warrants Value of Subordinate Debt Flexibility
Dealing
With Bondholders
Associated
Acquisitions
Buyouts

11. Key Takeways
This type of financing can provide more generous returns compared to typical corporate debt,
Often paying between 12% and 20% a year.
Mezzaine loans are most commonly utilized in the expansion of established companies rather
Than as start-up or early-phase financing.
It is senior to pure equity but subordinate to pure debt.
Mezzaine loans are subordinate to senior debt but have priority over both preferred and
common stock.
They carry higher yields than ordinary debt.
There is no amortization of loan principal
It may be structured as part fixed and part variable interest.

12. Taking Shareholding of Another Company
Capital Share holding
Asset
EPS

13. Venture Capital

14. Venture Capital
Money provided by investors to start-up firms and small business
with perceived long-term growth potential.
It is a very important source of funding for start-ups that do
not have access to capital markets.
It typically entails high risks for the investors, but it has the potential for above-average returns.
most venture capital comes from a group of wealthy investors, investment banks and other
Financial institutions that pool such investments or partnerships.
This form of raising capital is popular among new companies or ventures
Which cannot raise funds by issuing debt.

15. Key Takeaways
Opportunity for Expansion of Company
Valuable Guidance and Expertise for Venture Capitalist
Helpful in building networks and connections
No obligation for repayment
Venture Capitalists are trustworthy
Easy to Locate

16. Business Incubator

17. Business Incubator
Business incubation programs are often sponsored by private companies or municipal entities and public
institutions, such as colleges and universities.
A business incubator is a company that helps new and startup companies to develop by providing
services such as management training or office space.
If an incubation program seems interesting to us, be prepared to submit a fleshed out business plan.
The plan will be reviewed by a screening committee to determine whether or not we meet the
criteria for admission.
Incubators provide numberous benefits to owners of startup businesses
Incubators provide their office, manufacturing space is offered at below-market rates, their staff
supplies advice and much needed expertise.
Companies typically spend an average of two years in a business incubator, during this time they often
share telephone, secretarial office, and production equipment expenses with other startup companies,
in an effort to reduce everyone’s overhead and operational costs.

18. Finance Company

19. Finance Company
A finance company is an organisation that makes loans to individuals and businesses.
Unlike a bank, a finance company does not receive cash deposits from clients, nor does it provide
Some other services common to banks.
Many finance companies lend finance to clients who cannot obtain loans from banks because
of a poor credit history.
Such clients secure their loans with finance companies by offering collateral (in HINDI Girvi)
There are many bigger finance companies in INDIA like LIC, Aditya Birla Finance, Bajaj Finance,
Reliance Capital, etc.

20. Personal finance
Financial management is an important
part of financial planning. When planning
personal finance, having a clear objective
and knowledge about one’s finances is
an essential part of creating a workable
plan that is right for you. Financial
management involves creating a budget,
choosing a bank , paying taxes , managing
debt, investing, retirement planning and
savings etc
Personal finance, the individual would
consider the suitability to his or her needs

21. Budgeting :
Managing the personal finance
Budgeting is the process of creating a
plan to spend your money. This
spending plan is called a budget. It
determine the advance spending plans
whether you will have enough money
to do the things you need. Budget is
simply balance your expenses with your
income

22. It is important to take control of debt.
Personal finance can create plans to manage
the debt . Although most people have some
kind of debt,such as car
loan or a mortgage, high interest debt can
lead to disastrous consequences.
Manage debt :
Saving:
When saving for retirement, an early start
can make all the difference make the
most of your contributions through
available employer match programs.

23. Retirement:
Planning for retirement is essential to ensuring a comfortable
life in the future. Investing in an employer – sponsored
retirement plan is good way to save for future, reduce tax
liability etc that it should save for suitable to his or her
needs for future life events

24. Government Grants and Subsidies
(1) Micro, Small and Medium Enterprises Loan (MSME)

25. Government Grants and Subsidies
(1) Micro, Small and Medium Enterprises Loan (MSME)
Offered under government schemes, the 59 minutes MSME loan is a business capital loan for
an amount between 10 lakhs to 1 crore.
MSME loans are unsecured loans offered by several financial institutions to meet various business
related expenses on credit.
MSME loans are defined by the Indian Government and RBI as loans for business
enterprises for support in terms of finance, infrastructure and other areas.
Businesses must meet specific eligibility criteria mentioned under the schemes to enjoy
the benefits extended by an MSME loan.

26. Mudra Loan
Government Grants and Subsidies

27. Government Grants and Subsidies
Mudra Loan
Micro-Units Development and Refinance Agency (MUDRA) is an organisation established by the
Government of INDIA to provide business finance to micro-business units.
The loans under the scheme are given on the pretext of ‘funding the unfunded’.
Since small companies and startups are often left to their own devices for financing their venture,
the government has created the concept of low-cost credit to such undertaking.
MUDRA Loans are also a refinanced business loans, approved and disbursed
through public sector banks, private banks, co-operative societies, small banks,
scheduled commercial banks and rural banks that come under the scheme.
The loans are generally given to micro or small businesses operating in the manufacturing,
trading and services sector.

28. Government Grants and Subsidies
CGMSE

29. Government Grants and Subsidies
CGMSE
Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE)
Launched 2000 Monetary Support Scheme Micro and Small Enterprise
Offers Collateral-free credit New and Existing Business
Loans vary from 10 LAKH to 1 CRORE
The Business Loans under this scheme are financed by various
public and private sector banks covered under the scheme.

30. Government Grants and Subsidies
NSIC

31. Government Grants and Subsidies
NSIC
National Small Industries Corporation Subsidy
Raw Material Assistance Marketing Assistance
Indigenous
Raw Material
Imported
Raw Material
Funds to Small and Medium Enterprises
For enhancing competitiveness
Market Value of their
products and services
The NSIC is mainly focused on funding Small and Medium Enterprises who wish to improve/grow
their manufacturing quality and quantity.

32. Government Grants and Subsidies
CLCSS

33. CLCSS
Government Grants and Subsidies
Credit Link Capital Subsidy Scheme for Technology Upgradation
Financing Technological Upgradation
The Technological Upgradation can be related to numberous
processes within the organisation, such as manufacturing,
marketing, supply chain etc.
Government Aims to Cost of Production of goods and services for SME’s
Scheme is run by Ministry of Small Scale Industries
CLCSS offers an up-front capital subsidy of 15% for eligible business
Sole Proprietorships, Parrtnership Firms, Co-operative, Private and
Public Limited Companies come under the ambit of this business
loan scheme.

34. LEASES

35. LEASES
Meaning of Lease and Leasing
A Lease is a contractual arrangement calling for the lessee (user)
to pay the lessor (owner) for use of an asset.
Leasing is a process by which a firm can obtain the use of a certain fixed
assets for which it must pay a series of contractual, periodic, tax
deductible payments.
Key takeaways
Allows for the effective depreciation of land, which is not allowed when land is purchased.
Sale-Leaseback can enhance firm liquidity.
Leasing can provide 100% financing.
Lower claims against the firm in bankruptcy
May enhance a firm’s financing flexibility
Avoid restricitive covenants that would likely be present in a long term loan agreement.

36. Commercial Paper

37. Commercial Paper
Commercial Paper is a money-market security issued by large corporation to obtain funds to meet short-term
debt obligations, and is backed only by an issuing bank or corporation’s promised to pay the face amount
on the maturity date specified on the note.

38. Corporate Bonds

39. Corporate Bonds
A Corporate Bond is a bond issued by a corporation in order to raise financing for a variety of reasons such
as to ongoing operations, M&A, or to expand business.
The term is usually applied to longer-term debt instruments,
with maturity of at least one year.
A corporate bond is a type of debt security that is issued by a firm and sold to investors.
The company gets the capital it needs and in return the investor is paid a pre-established number of interest
payments at either a fixed or variable interest rate.
When the bond expires, or "reaches maturity," the
payments cease and the original investment is returned.