91. Maximum
permissible bank finance (MPBF): it is the maximum amount
that banks can lend a borrower towards his working capital requirements.
92. Commercial paper: a cp is a short term
promissory note issued by a company, negotiable by endorsement and delivery,
issued at a discount on face value as may be determined by the issuing company.
93. Bridge finance: It refers to the loans taken by the company
normally from commercial banks for a short period pending disbursement of loans
sanctioned by the financial institutions.
94. Venture
capital: It refers to the financing
of high risk ventures promoted by new qualified entrepreneurs who require funds
to give shape to their ideas.
95. Debt
securitization: It is a mode of financing, where
in securities are issued on the basis of a package of assets (called asset
pool).
96. Lease financing: Leasing is a contract where one party (owner)
purchases assets and permits its views by another party (lessee) over a
specified period
97. Trade Credit: It represents credit granted by suppliers of
goods, in the normal course of business.
98. Over draft: Under this facility a fixed limit is granted
within which the borrower allowed to overdraw from his account.
99. Cash credit: It is an arrangement under which a customer
is allowed an advance up to certain limit against credit granted by bank.
100. Clean overdraft: It refers to an advance by way of overdraft
facility, but not back by any tangible security.
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