Financial Consultancy

Term Loan Financing

Term Loan Financing

Term loan facility is provided by the Bank to various Business entities in order to carry out the capital expenditure. The various types of Capital Expenditure include plant erecting, capital expenditure, new industrial undertaking and acquisition of movable assets.

Term loan financing is ideal for privately held midsize businesses engaging in following scenario:

  • Management and financial buyouts (when the company's management buys the assets and operations of the business they manage)
  • Rapid growth in business that makes traditional bank financing insufficient and leaves you with the requirement of more finance
  • Turnarounds and milestones that requires the optimum use of the balance

Keeping up with all the above details and experience in this field our company is engaged in providing Term Loan Financing. We help our clients and organizations to approach the best and safe practices for development.

Different types of term loan financing service that our company is providing to our esteemed clients are as follows:

  • LONG TERM: they usually mature in 7 year but it takes longer for real estate or equipment loan. These loans are used for the major business expenses and are also used to carry a business through a depressed cycle.
  • INTERMEDIATE TERM: these term loans helps in financing the purchase of furniture, fixtures and other office equipment. Their maturity generally runs for more than a year but is less than five years. Consumer loans fall in this category.
  • SHORT TERM: these loans are typically the lines of credit, receivable loans etc that usually matures within one year or less. It is an option for any established firm that has strong support and patronage.

Other important terms in Term Loan Financing are:

  • SECURITY: rightful claiming of fixed assets financed and a full credit analysis on the person applicable for loan including detailed review of financial statements for fraud safety.
  • COLLATERAL: At least 50% of the loan amount in the form of fixed Property, this will be the primary source for returning the taken loan and one should always expect the bank to want this source to be greater than the amount paid by the bank.
  • RATE OF INTEREST: Bank interest rates vary under the influence of conditions and rules present at the time of taking the loan which can vary from high to low and vice versa as per bank's obligations.

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