YES BANK, India’s new age private sector Bank, is a state-of-the-art high quality, customer-centric, service-driven Bank catering to the “Future Businesses of India”. An outcome of the professional & entrepreneurial commitment of its Promoter & Founder, Dr. Rana Kapoor and his top management team, YES BANK is India’s fourth largest private sector bank (by balance sheet dated March 31, 2012).
Working Capital Finance
The term working capital finance has several meanings in business and economic development finance .In accounting and financial statement analysis, working capital is defined as the firm’s short term or current assets and current liabilities. From a financing perspective, working capital refers to the firm’s investment in two types of assets: short term assets and overall non-fixed asset investments.
Some of the types of working finance are: -
* Cash Credit Limit
* Bank Overdraft
* Foreign Letter of Credit (FLC)
* Packing Credit in Foreign Currency
Requirements to avail loan: -
* Annual sales of Rs 60 lacs or above (as per the audited balance sheet)
* Last 3 years audited balance sheets
* Last 1 year bank account statement like Current Account or C.C. Limit Account(in any bank)
* Last 3 years income tax details
* Existence proof of the loan availing firm
* Minimum years in operation-3 years
* Net worth certificates of house, car, any other property
After the above mentioned requirements are fulfilled, a 20-25 pages long proposal is prepared by the bank personnel after in depth analysis of the loan availing firm’s financial status so as to ensure its loan repaying capacity. The proposal includes study of the following:-
* Business cycle
* Credit/ Debit policies
* Working capital cycle
The proposal prepared by the bank defines the amount to be allotted to the customer firm as per the bank’s analysis pertaining to the structure, requirement and degree of... [continues]
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