How to apply credit facility?

Answers: Dear Shakti

I believe by credit facility you mean nouns for working capital. You own to apporach your banker where on earth you have be operating your business account.( If the facility sought is for business). The dune will study the financial statements of your firm/organisation and will work out your working capital requirement. This is primarily financing the current assets, like stock surrounded by trade, receivables. Your projected level of operation (targetted sale for example) is taken as a base for calculating the working funds requirement. The average level of your funds that will remain blocked surrounded by current assets is calculated. The current liabilities close to sundry creditors etc are deducted from your current asset smooth to arrive at the working capital breach.If assets are more than the liability, your company will be eligible for the finance. If it is reverse, in attendance will be no need to nouns.
Banks also finance the long permanent status capital for acquire machinery etc the repayment of which is scheduled over a longer length say 5 to 6 years.

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