small business financing
|
|
small business financing
|
|
While India has a varying industrial sector
in terms of size, the small sector seems to be flourishing in both the
urban and rural areas. Hoards of families have set up small businesses
that bring home bread and butter and fulfillment of necessities. While
many could set up on their own, there are yet others who require small
business financing. Seeking small business finance is as difficult as large business or industrial financing. At the very base when seeking finance, one must be ready with a strong project report. This report has to contain the background of this business venture, the balance sheet if it is already in existence, projected profit and loss statement, amount required and its utility, basis of returns, etc. Undoubtedly, every financier is aware that there is a risk factor involved when financing a business, whether big or small. But then, he is ready to take a calculated risk if the returns are expected to be far higher than the investment, whether in the short-term or long-term. Usually banks encourage small business financing by providing loans, which again depends on the project report. While financiers are interested in the returns and the role they would play in the company, the banks are mainly concerned with how the customer would be able to pay back the loan. Banks charges an EMI on the finance it provides. Some financiers may insist on receiving interest on finance given or then may demand a stake in the company. The final deal depends on how strong the business prospects are, no matter how big or small it maybe. ~ author Karishma Bajaj.
|
| Featured topics on India > Business > aluminum suppliers business-to-business mktg business intelligence |
Copyright © 2004.Indianchild.com. All rights reserved. India Business articles. No Content from our pages can be used /copied /downloaded for any use/publication/website in whatsoever manner without our written permission. We take serious action on infringement. Category editors disclaim responsibility for suggestions and recommendations. We are not representing or affiliated with products or sites reviewed.
