Working Capital of Icici
INTRODUCTION
1.1 WORKING CAPITAL FINANCE
Every Enterprise namely company/firm/individual requires money to meet the day to day business operations, for purchasing stocks and for acquiring raw materials for processing and conversion to finished good. Banks provide finance to purchase inventory directly by providing funded limits or by issuing letter of credit or Bank Guarantee. Bank also provides receivables finance to provide liquidity to the customers.
1.2 CREDIT - THE LIFELINE OF BUSINESS
Of all the elements that go into a business, credit is perhaps the most crucial. The best of plans can come to naught if adequate finance is not available at the right time. SSIs need credit support not only for running the enterprise & operational requirements but also for diversification, modernization/ up gradation of facilities, capacity, expansion etc. In respect of SSIs, the problem of credit becomes all the more critical whenever any episodic event occurs such as a large order, rejection of consignment, inordinate delay in payment etc. In general, SSIs operate on tight budgets, often financed through owner's own contribution, loans from friends and relatives and some bank credit.
1.3 FACILITIES IN NUTSHELL
Funded Limit – Bank provides funded limit for purchasing stock-in-trade to traders, for purchasing raw materials to manufacturers. Receivables finance to traders/manufacturers is also provided by the banks.
Non-Fund limit – Bank also issues letters of credit and Bank Guarantees on behalf of customers to suppliers/ Government Departments for the procurement of raw materials or services on credit or deferred payment of taxes.
Both the above facilities are provides both in Indian rupees and Foreign currency.
1.4 EXPORT & IMPORT FINANCE
Bank in tune with Government guidelines is actively financing export and import trade transactions. The Bank is providing credit to exporters on simple and hassle free terms.
Pre-shipment Finance: ➢ Packing credit in Indian
1.1 WORKING CAPITAL FINANCE
Every Enterprise namely company/firm/individual requires money to meet the day to day business operations, for purchasing stocks and for acquiring raw materials for processing and conversion to finished good. Banks provide finance to purchase inventory directly by providing funded limits or by issuing letter of credit or Bank Guarantee. Bank also provides receivables finance to provide liquidity to the customers.
1.2 CREDIT - THE LIFELINE OF BUSINESS
Of all the elements that go into a business, credit is perhaps the most crucial. The best of plans can come to naught if adequate finance is not available at the right time. SSIs need credit support not only for running the enterprise & operational requirements but also for diversification, modernization/ up gradation of facilities, capacity, expansion etc. In respect of SSIs, the problem of credit becomes all the more critical whenever any episodic event occurs such as a large order, rejection of consignment, inordinate delay in payment etc. In general, SSIs operate on tight budgets, often financed through owner's own contribution, loans from friends and relatives and some bank credit.
1.3 FACILITIES IN NUTSHELL
Funded Limit – Bank provides funded limit for purchasing stock-in-trade to traders, for purchasing raw materials to manufacturers. Receivables finance to traders/manufacturers is also provided by the banks.
Non-Fund limit – Bank also issues letters of credit and Bank Guarantees on behalf of customers to suppliers/ Government Departments for the procurement of raw materials or services on credit or deferred payment of taxes.
Both the above facilities are provides both in Indian rupees and Foreign currency.
1.4 EXPORT & IMPORT FINANCE
Bank in tune with Government guidelines is actively financing export and import trade transactions. The Bank is providing credit to exporters on simple and hassle free terms.
Pre-shipment Finance: ➢ Packing credit in Indian