The document discusses criteria for small and medium enterprises to access development funds through financial institutions in Nigeria. It outlines various government funds established to provide financing to SMEs at lower rates. It describes the loan application and assessment process, required documents, eligibility criteria considered, and complaint procedures. Additionally, it notes that not all SMEs will qualify for loans and provides alternative business opportunities to consider.
There are a variety of capital sources available for private companies beyond traditional bank loans. Companies seeking funding should research options like asset-based lenders, mezzanine funds, and private equity firms. To access capital, companies need to understand what factors lenders consider, like the five Cs of credit. They should also cultivate relationships with multiple potential lenders and create a compelling funding package with clear business plans and financial projections. With the right preparation, companies can successfully tap alternative sources of funding to finance growth.
This document provides an overview of financial services and institutions in Pakistan. It discusses various types of financial intermediaries and the structure of Pakistan's banking sector. It also summarizes various banking services including universal banking, correspondent banking, retail banking, private banking, loan syndication, bridging loans, credit cards, and consumer credit. Additionally, it covers credit rating agencies and the credit rating process, money laundering, merchant banking, underwriting, stock brokers, development financial institutions, venture capital, private equity, and other financial concepts.
Credit rating agencies evaluate the creditworthiness of individuals, corporations, and countries to assess their ability to repay debt and likelihood of default. The major credit rating agencies in India are CRISIL, ICRA, CARE, DCR India, ONICRA, and SMERA. Credit ratings provide benefits to both investors and rated companies by reducing information costs and encouraging financial discipline. However, credit ratings also have limitations such as potential bias and improper disclosure.
Credit ratings estimate the creditworthiness of individuals, corporations, or countries based on their financial history and current assets/liabilities. The rating process involves analyzing factors like business characteristics, financial performance, management quality, and competitive position to assign a rating indicating the probability of being able to repay loans. Major credit rating agencies in India are CRISIL, ICRA, CARE, and FITCH which analyze financial statements and assign ratings to help investors make informed decisions.
Credit ratings in India began in 1987 with the establishment of CRISIL. Additional rating agencies ICRA and CARE were formed in 1991 and 1993. Credit ratings assess the creditworthiness of an entity based on financial history and current assets/liabilities, assigning ratings from AAA (highest safety) to D (default). Rating agencies analyze business risk, financial risk, management, and other factors to determine an overall risk rating. Major Indian rating agencies include CRISIL, the first agency established in 1988 as a joint venture between ICICI and UTI.
The document defines merchant banking and outlines its key services. Merchant banking originated in Europe to finance foreign trade and was introduced to India in 1967. It primarily provides financial advice and services to large corporations, engaging in activities like corporate counseling, project financing, portfolio management, and mergers and acquisitions. Unlike commercial banks, merchant banks do not provide regular banking services but instead focus on investment banking activities in primary markets. The document lists major public and private sector as well as foreign merchant banking institutions operating in India.
Empowering MSMEs - Benefits of Credit Rating in MSME - Part - 8Resurgent India
Approaching a credit rating agency is a good option for small and medium enterprises (SMEs) given the problems they face in seeking finance. Rating agencies assess a firm's financial viability and capability to honour business obligations, provide an insight into its sales, operational and financial composition, thereby assessing the risk element and highlights the overall health of the enterprise.
There are a variety of capital sources available for private companies beyond traditional bank loans. Companies seeking funding should research options like asset-based lenders, mezzanine funds, and private equity firms. To access capital, companies need to understand what factors lenders consider, like the five Cs of credit. They should also cultivate relationships with multiple potential lenders and create a compelling funding package with clear business plans and financial projections. With the right preparation, companies can successfully tap alternative sources of funding to finance growth.
This document provides an overview of financial services and institutions in Pakistan. It discusses various types of financial intermediaries and the structure of Pakistan's banking sector. It also summarizes various banking services including universal banking, correspondent banking, retail banking, private banking, loan syndication, bridging loans, credit cards, and consumer credit. Additionally, it covers credit rating agencies and the credit rating process, money laundering, merchant banking, underwriting, stock brokers, development financial institutions, venture capital, private equity, and other financial concepts.
Credit rating agencies evaluate the creditworthiness of individuals, corporations, and countries to assess their ability to repay debt and likelihood of default. The major credit rating agencies in India are CRISIL, ICRA, CARE, DCR India, ONICRA, and SMERA. Credit ratings provide benefits to both investors and rated companies by reducing information costs and encouraging financial discipline. However, credit ratings also have limitations such as potential bias and improper disclosure.
Credit ratings estimate the creditworthiness of individuals, corporations, or countries based on their financial history and current assets/liabilities. The rating process involves analyzing factors like business characteristics, financial performance, management quality, and competitive position to assign a rating indicating the probability of being able to repay loans. Major credit rating agencies in India are CRISIL, ICRA, CARE, and FITCH which analyze financial statements and assign ratings to help investors make informed decisions.
Credit ratings in India began in 1987 with the establishment of CRISIL. Additional rating agencies ICRA and CARE were formed in 1991 and 1993. Credit ratings assess the creditworthiness of an entity based on financial history and current assets/liabilities, assigning ratings from AAA (highest safety) to D (default). Rating agencies analyze business risk, financial risk, management, and other factors to determine an overall risk rating. Major Indian rating agencies include CRISIL, the first agency established in 1988 as a joint venture between ICICI and UTI.
The document defines merchant banking and outlines its key services. Merchant banking originated in Europe to finance foreign trade and was introduced to India in 1967. It primarily provides financial advice and services to large corporations, engaging in activities like corporate counseling, project financing, portfolio management, and mergers and acquisitions. Unlike commercial banks, merchant banks do not provide regular banking services but instead focus on investment banking activities in primary markets. The document lists major public and private sector as well as foreign merchant banking institutions operating in India.
Empowering MSMEs - Benefits of Credit Rating in MSME - Part - 8Resurgent India
Approaching a credit rating agency is a good option for small and medium enterprises (SMEs) given the problems they face in seeking finance. Rating agencies assess a firm's financial viability and capability to honour business obligations, provide an insight into its sales, operational and financial composition, thereby assessing the risk element and highlights the overall health of the enterprise.
Credit analysis is the evaluation of a company's ability to repay its financial obligations. There are four major credit rating agencies in India: CRISIL, ICRA, CARE, and FITCH India. CARE Ratings is the second largest agency, rating debt worth Rs. 68.08 lakh crore. CARE provides credit ratings for various debt instruments, as well as advisory, information, and equity research services. The rating methodology involves analyzing industry, business, financial, and management risks to assess creditworthiness. Ratings use symbols like AAA to C to indicate the degree of certainty of timely repayment.
A merchant bank provides a wide range of financial services such as underwriting shares, portfolio management, project counseling, credit syndication, and insurance. They facilitate international transactions for multinational corporations. For example, a US company wanting to acquire a German company would hire a merchant bank to advise on structuring the transaction and assist with financing. Merchant banks must be authorized by the Securities and Exchange Board of India (SEBI) and meet capital adequacy requirements to operate in India.
CRISIL SME Rating indicates the SME's performance capability and financial strength. CRISIL SME Ratings are entity-specific ratings, unlike credit ratings, which are debt-obligation-specific.
CRISIL SME Rating reflects the level of creditworthiness of the SME, adjudged in relation to other SMEs.
1. Merchant banking provides a wide range of financial services including underwriting shares, portfolio management, project counseling, and insurance for a fee.
2. Some key functions of merchant banking include project counseling, loan syndication, issue management, portfolio management, capital restructuring services, and arranging working capital finance.
3. Merchant bankers are also involved in public issues, lease financing, venture capital funding, and helping companies raise public deposits.
Credit Rating Agency their process and methodologyAshutosh Singh
Credit rating agencies provide ratings of securities to indicate their level of credit risk. They must register with the Securities and Exchange Board of India. The major credit rating agencies in India are CRISIL, ICRA, and CARE. Internationally, the major agencies are Moody's, Standard & Poor's, and Fitch. The credit rating process involves an agency collecting information, analyzing it, potentially visiting the issuer, and assigning a rating grade. Ratings are then continuously monitored. Agency methodologies assign letter grade ratings that indicate varying levels of credit risk and ability to repay obligations.
This document summarizes a student's summer training project report on the impact of credit and performance ratings of organizations on bank loan releases. It includes the student's name, registration number, dates of their MBA program, and details about their internship at Onicra Credit Rating Agency of India Ltd. The project report examines how credit ratings and organizational performance ratings influence banks' decisions to release loans. It covers topics like the evolution and functions of credit rating agencies, different types of credit ratings, benefits of credit ratings to investors and companies, and the importance of credit ratings for obtaining bank loans.
This document discusses credit rating agencies and their role and methodology. It provides an overview of the major credit rating agencies in India - CRISIL, ICRA, CARE, ONICRA, and Fitch - and their objectives to provide unbiased credit ratings to help restore confidence in the capital markets. It also outlines the various factors that credit rating agencies consider when assigning ratings, such as a company's history, accounting practices, business fundamentals, liquidity, management quality, asset quality, profitability, and capital structure. The methodology aims to assess the relative ability of companies to repay debt obligations.
Credit ratings are opinions on the likelihood that a borrower will repay their debt. They are issued by independent rating agencies and help investors assess risk. The document discusses the history and role of credit ratings in India, provided by agencies such as CRISIL, the largest domestic rating agency. It outlines CRISIL's ratings scales and process for long-term and short-term instruments, corporate issuers, real estate projects, and developers.
Credit ratings are evaluations provided by credit rating agencies of a debtor's ability to pay back debt. They use alphanumeric symbols to indicate the likelihood of default, with higher ratings indicating lower risk. Ratings are determined based on the agency's analysis of financial information and risk factors rather than mathematical formulas. The main objectives of credit ratings are to provide investors information to evaluate risk-return tradeoffs and encourage greater transparency from companies. Popular credit rating agencies in India include CRISIL, ICRA, CARE, and Fitch while the largest globally are Moody's, S&P, and Fitch. High ratings can benefit companies through lower borrowing costs and improved corporate image.
Merchant banking provides capital to companies through equity investment rather than loans. It offers advisory services on corporate matters and investment banking services like mergers and acquisitions. Merchant banking started in Italy and France in the 17th-18th centuries and modern merchant banking began in London by financing foreign trade through bill acceptance. In India, merchant banking was introduced by Grindlays Bank in 1967 and other Indian and foreign banks subsequently established merchant banking divisions. Merchant banks invest their own capital and provide services primarily to large corporations and high-net-worth individuals rather than retail banking.
This document discusses credit ratings and the credit rating agencies in India. It provides background on what credit ratings are, who provides them, and who regulates the agencies. It then gives details on the major credit rating agencies in India, including CRISIL, ICRA, CARE, SMERA, and Brickwork Ratings. It explains their rating scales and methodology. The objectives and benefits of credit ratings for both investors and companies are also outlined.
SEBI - Consultation paper on review of the regulatory framework for debenture...Venkatesh Prabhu
To secure the interests of debenture holders of listed debt issues, Sebi Wednesday proposed a slew of measures to strengthen the regulatory framework for debenture trustees, including raising minimum net worth requirement for registration of such entities to Rs 10 crore from the current Rs 2 crore.
The DT can directly enforce the security without obtaining any consent from the debenture holders.
This document provides information about credit ratings. It defines credit ratings as assessments of creditworthiness that can be assigned to entities seeking to borrow money. Credit rating agencies assign ratings based on financial statements and past lending history. Ratings have inverse relationships with default risk and use scales like AAA to CCR D. High ratings benefit companies through improved images, wider borrowing audiences, and easier growth financing. The document also discusses ICRA and CRISIL as the major Indian credit rating agencies, including their history, leadership, and the types of ratings they provide.
The document discusses the objectives and scope of a project on merchant banking in India. It aimed to examine the role of merchant bankers in promoting capital markets, study SEBI regulations for merchant bankers, and evaluate their performance and marketing. However, the scope was limited due to the large size of the merchant banking industry and capital markets. The project focused on the functions of merchant bankers and primary markets dealing in shares.
The document provides an overview of credit ratings in India. It defines credit ratings as an assessment of an issuer's ability to meet debt obligations. The key points covered include:
- The regulatory framework for credit rating agencies in India is established by SEBI.
- Credit ratings benefit both investors and companies. They provide investors with independent evaluations of credit risk and companies can access larger investor pools at lower borrowing costs.
- The major credit rating agencies operating in India are CRISIL, ICRA, CARE, and FITCH Ratings India.
- The rating process involves a detailed analysis of companies' financials and business to determine their relative creditworthiness. Ratings are expressed using standardized symbols
Merchant banking provides a wide range of financial services including underwriting shares, portfolio management, project counseling, and more. They work with both equity and debt financing unlike commercial banks. Some key services include corporate counseling, project financing, managing public offerings, portfolio management, M&A advisory, offshore financing, and advising non-resident investors. Merchant banks must have expertise in financial analysis, market knowledge, and maintain high professional standards. The merchant banking industry in India has opportunities to grow with the increasing number of public offerings, foreign institutional investments, evolving debt markets, and corporate restructuring needs.
credit rating meaning
origin of credit rating agency
importance, benefits,objectives, needs
credit rating agency in India . Items rated
CRISIL rating symbols for long term and short term instruments
A credit rating evaluates the creditworthiness of a debtor, like a business or government, and their ability to repay debt. Credit ratings are determined by credit rating agencies who analyze both public and private information. The credit rating represents the agency's opinion on the risk of default. A poor credit rating indicates a higher risk of default based on the agency's analysis. Credit ratings help investors evaluate risk and make investment decisions.
five-Star Business Finance Ltd is a prominent non-banking financial company (NBFC) headquartered in Chennai, India, with operations spanning across various regions of the country. Established with a vision to bridge the financing gap for small and medium-sized enterprises (SMEs), Five-Star Business Finance has emerged as a
This document provides an overview of corporate banking services. It discusses the financial services banks provide to corporate clients to meet their banking and financial needs such as setting up new projects, expansion, diversification, and restructuring. It describes various funded services including working capital finance, short term finance, bill discounting, and structured finance. It also discusses non-funded services like letters of credit and bank guarantees. Finally, it outlines value-added services that include loan syndication, cash management, and channel financing.
Credit analysis is the evaluation of a company's ability to repay its financial obligations. There are four major credit rating agencies in India: CRISIL, ICRA, CARE, and FITCH India. CARE Ratings is the second largest agency, rating debt worth Rs. 68.08 lakh crore. CARE provides credit ratings for various debt instruments, as well as advisory, information, and equity research services. The rating methodology involves analyzing industry, business, financial, and management risks to assess creditworthiness. Ratings use symbols like AAA to C to indicate the degree of certainty of timely repayment.
A merchant bank provides a wide range of financial services such as underwriting shares, portfolio management, project counseling, credit syndication, and insurance. They facilitate international transactions for multinational corporations. For example, a US company wanting to acquire a German company would hire a merchant bank to advise on structuring the transaction and assist with financing. Merchant banks must be authorized by the Securities and Exchange Board of India (SEBI) and meet capital adequacy requirements to operate in India.
CRISIL SME Rating indicates the SME's performance capability and financial strength. CRISIL SME Ratings are entity-specific ratings, unlike credit ratings, which are debt-obligation-specific.
CRISIL SME Rating reflects the level of creditworthiness of the SME, adjudged in relation to other SMEs.
1. Merchant banking provides a wide range of financial services including underwriting shares, portfolio management, project counseling, and insurance for a fee.
2. Some key functions of merchant banking include project counseling, loan syndication, issue management, portfolio management, capital restructuring services, and arranging working capital finance.
3. Merchant bankers are also involved in public issues, lease financing, venture capital funding, and helping companies raise public deposits.
Credit Rating Agency their process and methodologyAshutosh Singh
Credit rating agencies provide ratings of securities to indicate their level of credit risk. They must register with the Securities and Exchange Board of India. The major credit rating agencies in India are CRISIL, ICRA, and CARE. Internationally, the major agencies are Moody's, Standard & Poor's, and Fitch. The credit rating process involves an agency collecting information, analyzing it, potentially visiting the issuer, and assigning a rating grade. Ratings are then continuously monitored. Agency methodologies assign letter grade ratings that indicate varying levels of credit risk and ability to repay obligations.
This document summarizes a student's summer training project report on the impact of credit and performance ratings of organizations on bank loan releases. It includes the student's name, registration number, dates of their MBA program, and details about their internship at Onicra Credit Rating Agency of India Ltd. The project report examines how credit ratings and organizational performance ratings influence banks' decisions to release loans. It covers topics like the evolution and functions of credit rating agencies, different types of credit ratings, benefits of credit ratings to investors and companies, and the importance of credit ratings for obtaining bank loans.
This document discusses credit rating agencies and their role and methodology. It provides an overview of the major credit rating agencies in India - CRISIL, ICRA, CARE, ONICRA, and Fitch - and their objectives to provide unbiased credit ratings to help restore confidence in the capital markets. It also outlines the various factors that credit rating agencies consider when assigning ratings, such as a company's history, accounting practices, business fundamentals, liquidity, management quality, asset quality, profitability, and capital structure. The methodology aims to assess the relative ability of companies to repay debt obligations.
Credit ratings are opinions on the likelihood that a borrower will repay their debt. They are issued by independent rating agencies and help investors assess risk. The document discusses the history and role of credit ratings in India, provided by agencies such as CRISIL, the largest domestic rating agency. It outlines CRISIL's ratings scales and process for long-term and short-term instruments, corporate issuers, real estate projects, and developers.
Credit ratings are evaluations provided by credit rating agencies of a debtor's ability to pay back debt. They use alphanumeric symbols to indicate the likelihood of default, with higher ratings indicating lower risk. Ratings are determined based on the agency's analysis of financial information and risk factors rather than mathematical formulas. The main objectives of credit ratings are to provide investors information to evaluate risk-return tradeoffs and encourage greater transparency from companies. Popular credit rating agencies in India include CRISIL, ICRA, CARE, and Fitch while the largest globally are Moody's, S&P, and Fitch. High ratings can benefit companies through lower borrowing costs and improved corporate image.
Merchant banking provides capital to companies through equity investment rather than loans. It offers advisory services on corporate matters and investment banking services like mergers and acquisitions. Merchant banking started in Italy and France in the 17th-18th centuries and modern merchant banking began in London by financing foreign trade through bill acceptance. In India, merchant banking was introduced by Grindlays Bank in 1967 and other Indian and foreign banks subsequently established merchant banking divisions. Merchant banks invest their own capital and provide services primarily to large corporations and high-net-worth individuals rather than retail banking.
This document discusses credit ratings and the credit rating agencies in India. It provides background on what credit ratings are, who provides them, and who regulates the agencies. It then gives details on the major credit rating agencies in India, including CRISIL, ICRA, CARE, SMERA, and Brickwork Ratings. It explains their rating scales and methodology. The objectives and benefits of credit ratings for both investors and companies are also outlined.
SEBI - Consultation paper on review of the regulatory framework for debenture...Venkatesh Prabhu
To secure the interests of debenture holders of listed debt issues, Sebi Wednesday proposed a slew of measures to strengthen the regulatory framework for debenture trustees, including raising minimum net worth requirement for registration of such entities to Rs 10 crore from the current Rs 2 crore.
The DT can directly enforce the security without obtaining any consent from the debenture holders.
This document provides information about credit ratings. It defines credit ratings as assessments of creditworthiness that can be assigned to entities seeking to borrow money. Credit rating agencies assign ratings based on financial statements and past lending history. Ratings have inverse relationships with default risk and use scales like AAA to CCR D. High ratings benefit companies through improved images, wider borrowing audiences, and easier growth financing. The document also discusses ICRA and CRISIL as the major Indian credit rating agencies, including their history, leadership, and the types of ratings they provide.
The document discusses the objectives and scope of a project on merchant banking in India. It aimed to examine the role of merchant bankers in promoting capital markets, study SEBI regulations for merchant bankers, and evaluate their performance and marketing. However, the scope was limited due to the large size of the merchant banking industry and capital markets. The project focused on the functions of merchant bankers and primary markets dealing in shares.
The document provides an overview of credit ratings in India. It defines credit ratings as an assessment of an issuer's ability to meet debt obligations. The key points covered include:
- The regulatory framework for credit rating agencies in India is established by SEBI.
- Credit ratings benefit both investors and companies. They provide investors with independent evaluations of credit risk and companies can access larger investor pools at lower borrowing costs.
- The major credit rating agencies operating in India are CRISIL, ICRA, CARE, and FITCH Ratings India.
- The rating process involves a detailed analysis of companies' financials and business to determine their relative creditworthiness. Ratings are expressed using standardized symbols
Merchant banking provides a wide range of financial services including underwriting shares, portfolio management, project counseling, and more. They work with both equity and debt financing unlike commercial banks. Some key services include corporate counseling, project financing, managing public offerings, portfolio management, M&A advisory, offshore financing, and advising non-resident investors. Merchant banks must have expertise in financial analysis, market knowledge, and maintain high professional standards. The merchant banking industry in India has opportunities to grow with the increasing number of public offerings, foreign institutional investments, evolving debt markets, and corporate restructuring needs.
credit rating meaning
origin of credit rating agency
importance, benefits,objectives, needs
credit rating agency in India . Items rated
CRISIL rating symbols for long term and short term instruments
A credit rating evaluates the creditworthiness of a debtor, like a business or government, and their ability to repay debt. Credit ratings are determined by credit rating agencies who analyze both public and private information. The credit rating represents the agency's opinion on the risk of default. A poor credit rating indicates a higher risk of default based on the agency's analysis. Credit ratings help investors evaluate risk and make investment decisions.
five-Star Business Finance Ltd is a prominent non-banking financial company (NBFC) headquartered in Chennai, India, with operations spanning across various regions of the country. Established with a vision to bridge the financing gap for small and medium-sized enterprises (SMEs), Five-Star Business Finance has emerged as a
This document provides an overview of corporate banking services. It discusses the financial services banks provide to corporate clients to meet their banking and financial needs such as setting up new projects, expansion, diversification, and restructuring. It describes various funded services including working capital finance, short term finance, bill discounting, and structured finance. It also discusses non-funded services like letters of credit and bank guarantees. Finally, it outlines value-added services that include loan syndication, cash management, and channel financing.
The document discusses sources of capital for Malaysian entrepreneurs, including debt, equity, venture capital, and angel funds. It notes that securing capital is challenging, especially for startups. Venture capital firms prefer later stages due to high failure rates of seed projects. Only Cradle Fund focuses on seed stage by offering grants. Overall, Malaysian entrepreneurs face difficulties raising capital for startups due to risk aversion and limited financing sources compared to other countries like the US.
The document discusses various areas of financial analysis including corporate finance, financial services, derivative markets, and consulting. Corporate finance aims to maximize shareholder value through long and short-term planning and strategies. Financial services encompass products from banks and other institutions like loans, insurance, and investment opportunities. Derivative markets involve securities whose prices are dependent on underlying assets. Consulting provides advisory services to corporations and individuals on areas such as mergers and acquisitions, projects, wealth management, and more.
Corporate Banking, Financial Advisory and Merchant Banking ServicesKalpesh Arvind Shah
This document provides an overview of syndicated loans, including:
- Syndicated loans involve multiple lenders jointly providing loans to one or more borrowers on the same terms.
- Roles of different players include arrangers, lead banks, managers, participants, and agency banks.
- Arrangers organize the syndicate and distribute loans to other members. Lead banks underwrite a larger share and manage arrangers. Participants accept invitations to join and provide agreed loan shares. Agency banks manage loan administration and repayment.
This document provides an overview of a presentation on venture capital. It includes definitions of venture capital, the nature and scope of venture capital, regulatory framework, problems with venture capital, the venture capital investment process, the current scenario in India, global experience, and conclusions. The document outlines topics that will be covered in the presentation and provides background information on venture capital concepts.
MSME Summit - Financing Sources for MSMEs - Part - 10Resurgent India
The document discusses various financing options available to MSMEs in India. It outlines the role of banks, NBFCs, venture capital/angel investors, government programs like Credit Guarantee Trust and Make in India initiative in providing debt and equity funding. It also mentions financing avenues for export-oriented MSMEs including lines of credit from EXIM bank and microfinance programs run by organizations like SIDBI and NABARD.
SME Finance: The Essentials for Small Businesses in IndiaM1xchange
SME finance is crucial for the development and growth of SMEs in India. However, SMEs face many barriers in accessing finance from formal sources. To overcome these barriers, SMEs can explore various options, such as bank loans, non-bank loans, equity financing, or invoice financing. They should also improve their financial management, creditworthiness, and awareness of available schemes and opportunities.
How to get a startup business loan with no money? If you are facing this problem, then you are in the right place. and sometimes getting a startup business loan with no money that can be challenging, but it's not impossible. Start by developing a well-researched business plan that highlights your market potential and revenue projections. Explore government-backed loan programs, such as Small Business Administration (SBA) loans, which offer favorable terms for startups.
Throughout this article, today we will explore "how to get a business loan with no money" and how seek out alternative funding sources like angel investors, venture capitalists, or crowdfunding platforms. Building a strong personal and professional network can also help you connect with potential lenders. Be prepared to demonstrate your commitment and passion for the business, and consider leveraging personal assets or securing a co-signer if possible. Persistence and thorough preparation are key to securing funding for your startup.
Entrepreneur Finance for MBA in FinanceRitikMishra68
The document discusses various sources of financing for entrepreneurial start-up companies. It begins by defining business finance and the characteristics of financing. It then discusses the importance of conducting a finance feasibility study which analyzes the viability of a project idea. The sources of capital discussed include personal funds, debt financing through banks and other lenders, equity financing through ventures like initial public offerings, business angels, venture capitalists, and corporate venture capital. Each source is described in 1-2 sentences.
1. The document discusses various aspects of starting and developing a new business venture including the steps involved, sources of funding and support available to entrepreneurs, and challenges that may be faced.
2. It describes several government institutions that provide funding, guidance and other support to entrepreneurs such as SIDBI, NABARD, and EXIM Bank of India.
3. The document also discusses the types of capital required for a new business including fixed capital for long-term assets and working capital for short-term operational needs, as well as sources of financing for each.
Project by Indian Society of Management Accountants with Group of MBA Students www.cmaonline.in
ISMA Project as part of students training program to develop skills
An exemplary approach towards strong Academia Industry Partnership
Steven George Conville has contributed his time to several charities trusts, such as the Urban Financial Services Commissions (UFSC) of Toronto, and financially to the Academy for Gifted Children (PACE) Canada.
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
Merchant banks provide a wide range of financial services including underwriting shares, portfolio management, project counseling, and insurance. They act as intermediaries between companies raising funds and investors. Some key functions of merchant banks include promotional activities, issue management, credit syndication, project counseling, portfolio management, and mergers and acquisitions advisory. Merchant banks must be registered with the Securities and Exchange Board of India and comply with regulations regarding capital adequacy, code of conduct, and other responsibilities.
This document provides a comprehensive guide to business loans. It discusses the different types of business loans available, including term loans, lines of credit, SBA loans, equipment financing, and invoice financing. The benefits of business loans are that they facilitate growth, provide financial flexibility, help establish creditworthiness, and may allow for tax deductions. The guide also covers how to apply for business loans by preparing a business plan, evaluating lender options, gathering documentation, and initiating the application process. It emphasizes the importance of prudently utilizing business loans through strategic allocation of funds, repayment discipline, and continuous monitoring of performance and market conditions.
Working Capital Finance: Essential for SMEs to Grow and ThriveM1xchange
Small and medium-sized enterprises (SMEs) play a crucial role in the growth and development of any economy. However, they often face financial challenges, particularly when it comes to managing their working capital. Working capital is the lifeblood of any business, and insufficient working capital can lead to serious problems, including bankruptcy. This is where working capital finance comes in. In this article, we will discuss the importance of working capital finance for SMEs and how they can avail it.
Venture capital is a form of financing provided to startup companies and small businesses that are deemed to have high growth potential. It allows entrepreneurs to focus on developing and growing their businesses in the initial phases without having to generate cash flows or profits. Venture capital is typically invested in companies in exchange for equity in the companies. Venture capital funding is available in different stages from seed funding to later expansion stages. While venture capital provides benefits like expertise and funding, it also involves risks and giving up some control for the entrepreneurs. The top industries attracting venture capital in India include IT/ITES, energy, manufacturing, financial services and healthcare. Cities like Mumbai, Bangalore, Delhi, Chennai and Hyderabad attract most of
Risk capital and msm es in india for finance, subsidy & project related sup...
Criteria for accessing development fund through financial institutions 123
1. By
Ronald Olusegun Olaiya
Managing Consultant/CEO
Bestride Consulting Limited
Bestride Consulting Limited:Criteria For
Accessing Development Fund Through Financial
02/23/13 Institutions 1
2. Development Funds
Through many initiatives of the government, various funds were
established for SMEs. The lending rates under the funds are
lower than market rates (3.75%-5% p.a.).
These funds are channeled through the following financial
institutions (FIs):
- Commercial banks, finance companies, Islamic banks,
development financial institutions, etc
Bestride Consulting Limited:Criteria For
Accessing Development Fund Through Financial
02/23/13 Institutions 2
3. Objectives
To ensure that the specific economic sectors get access to
financing at reasonable cost; and
To increase the productive capacity of the specific economic
sectors
Bestride Consulting Limited:Criteria For
Accessing Development Fund Through Financial
02/23/13 Institutions 3
4. Loan Processing
• Financing is granted in the form of loan, not
grant.
• FIs bear the credit risk.
• Normal credit assessment of the FIs is based on
applicant’s risk profile.
• Main criterion is viability of business / project.
• Other factors. (not exhaustive)
- Character of the applicant, Ability to pay back the loan,
capital commitment, business condition, etc.
Bestride Consulting Limited:Criteria For
Accessing Development Fund Through Financial
02/23/13 Institutions 4
5. SME Special Funds
Fund Objective
1. Funds for Small & To promote SME activities in both the
Medium Industries export and domestic sectors
2. Funds for Food To increase food production
3. New Entrepreneurs To help stimulate the growth of small
Funds and medium-sized enterprises.
Bestride Consulting Limited:Criteria For
Accessing Development Fund Through Financial
02/23/13 Institutions 5
6. SME Special Funds Cont’d
Fund Objective
4. Rehabilitation To provide assistance to viable SMEs that
Funds for Small are constrained financially to revive their
Businesses facilities, plants, machines, equipments ,etc
5. Entrepreneur To provide financing to entrepreneurs who
Project Funds have been awarded contracts/ projects by
(EPF) the Governments or Government related
agencies, statutory bodies and reputable
private/ public companies.
Bestride Consulting Limited:Criteria For
Accessing Development Fund Through Financial
02/23/13 Institutions 6
7. Credit Enhancement
Credit Guarantee by government or its relevant agency
provides guarantee for SMEs with little or no collateral.
Borrowers are subjected to loan agreement
With the scheduled repayment by borrowers, it will enable the
Government to assist other eligible borrowers
Bestride Consulting Limited:Criteria For
Accessing Development Fund Through Financial
02/23/13 Institutions 7
8. Client Charter of FIs
FIs are required to display their client charters on the SME
loans. The client charters include:
Documents and information required from SMEs;
Eligibility criteria; and
Loan processing time. Normally, the processing time for loan
application is 30 days from the date of complete submission.
FIs are also required to inform the applicants on reasons for
rejection of loan applications.
Bestride Consulting Limited:Criteria For
Accessing Development Fund Through Financial
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9. Complaint Units at FIs
All FIs have established complaint units as an avenue for
customers to lodge complaints:
FIs have to settle the complaints within reasonable period of
time.
Customers of FIs could also forward their complaints to:
SME Special Unit of the relevant supervisory agency
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10. Eligibility Criteria
Ranking of Criteria used in assessing SME borrowers are as
follows:
• Intended purpose of loan
• Repayment of previous loan
• Repayment schedule
• Type of business activity
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11. Eligibility Criteria Cont’d
• Size of loan relative to size of business
• Availability of collateral
• Liquidity ratio
• Net profit to sales
• Existing profitability
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12. Eligibility Criteria Cont’d
Projected income
Loan activity at other banks
Equity stake in business
Trading experience
Trade debtors
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13. Eligibility Criteria Cont’d
Trade creditors
Length of time doing business with bank
Charges on assets
Gearing
Government guarantee of loan
Cvs of clients
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14. Supporting Documents
• Company information
• Management information
• Financial information
• Security information
• Business operation information
• Other information
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15. SME Units at FIs
• All FIs have established dedicated SME Units.
• The roles and functions include:
Identifying SME financing needs;
Organizing training, courses and seminars;
Providing cash management services; and
Advisory services i.e. financial management.
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16. SME Special Units at FIs
They are established to assist viable SMEs by:
• Providing information on the various sources of financing
available to the SMEs;
• Facilitating SMEs in their loan application process;
• Addressing the difficulties faced by viable SMEs in securing
financing; and
• Providing advisory services on other SMEs’ financial
requirements.
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17. The Inescapable Reality
Reality - No matter what, it’s not everybody that can afford to
access development funds/loans despite their inherent benefits.
Reasons? Answer – Stringent conditions
Way out – All those who cannot access development loans are
advised to opt for network marketing or MLM that is usually
cheaper, at least to start with
Those who have successfully accessed them are also advised
to take advantage of network marketing or MLM to add to their
streams of income
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18. Alternative Lines of Business
Listed below are links for alternative businesses that can be
pursued by interested persons:
http://www.sfi4.com/12058229/FREE
http://www.tripleclicks.com/12058229/wave
http://www.profitclicking.com/?r=56cKwzXTq0&p=opp
https://www.profitablesunrise.com/?upline=olusegunolaiya1
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19. Conclusion
The Government has introduced various initiatives and promoted
various financing schemes to assist the SMEs.
However, to ensure success SMEs should also:
Enhance competitive edge, business viability and quality of
product or services offered.
Implement effective strategies to enhance accessibility to
technologies, innovation, technical expertise including finance
and skills in business management.
All entrepreneurs are also advised to explore the opportunities
being offered through network marketing or multi-level
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20. About the Author
Ronald Olusegun Olaiya is a Management Consultant, Online
Marketer & Entrepreneur. For enquiries on this write up and
other business interests, please contact him via
bestrideconsulting@gmail.com; roolaiya@gmail.com or Mobile
Phone +2348184559437
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21. Thank You
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22. Tags
Development Fund, Criteria for Accessing
Development Fund, SMEs, Network Marketing, MLM,
Multi-Level Marketing, SFIMG, Triple Clicks, Profit
Clicking, Profitable Sunrise
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