FINANCING

Looking for an equipment or upgrading old one, one thing you can not ignore is, How to fund your project...? We have tie-ups with leading banks and financial institutions to meet your financial needs^*, though the following points need to be kept in mind.

Even if you may have enough funds or Not, or a new project is being launched or where the volume of business expected is little less or the project is at a remote location, good financial planning plays an important role.

Here are few steps which can help you in moving your project without any financial problems :-

Step-1

It is extremely important to keep your paper work strong as you may be earning millions but if you can not prove on papers bankers will be reluctant in financing and if you are strong on papers, finances can be arranged with in a week's time. And moreover, best rate of interest can be negotiated. Plan ahead of time , say one year time frame. Keep the margin money approximately 20% of the total project cost in mind.

Keep the bank credibility stronger at least 6 months before the start of the project.

Do file your returns showing profits at least 3 years in a row.

Step-2

Keep your future earnings and cash flow in mind and if you are in a capacity to repay the loan amount before the tenure period it should be preferred to get finance from Nationalized Banks though they may demand collaterals, their formalities may be high but it would be worth doing extra efforts as it will save a lot of money in terms of interest and even can help you in crisis by using your local credibility.

If you want to keep the fixed repayment tenure then private banks/funding instititues are the best option as you have to go through less paper work. Only thing to keep in mind is on time repayments.

^*Final financing criteria lies solely with the financers.