START-UPS/NEW ENTREPRENEURSHIP

Cash Credit

BCSPL offers financial services to avail Cash Credit (CC) facility to enabling an enterprise to carry out business transactions.

Under Cash credit facility, a line of credit is provided to the borrower on the basis of his projected level of sales, inventories, receivables and cash requirements. This is also known as “Credit Limit” granted by the bank. This facility is operated in the same manner as overdraft facility. This facility is granted for financing current assets such as stocks & debtors/receivables of the firm/company.

It is always advisable for a business unit to avail this limit as compared to mortgage loan since the interest is charged on per day and amount utilization basis. Also a mortgage loan is granted to individual or a company which is more than 3 years old. Whereas we help our new entrepreneurs who have vintage even less than 1 year to avail this limit.

FEATURES AND BENEFITS

  • Interest to be charged on Utilization basis.
  • Interest to be charged only for number of days the amount is utilized.
  • No Pre-Payment penalty.

Overdraft Facility

BCSPL offers financial services to avail an overdraft (OD) facility enabling an enterprise to carry out business transactions without any hypothecation on current assets.

Major SME being still not aware of Overdraft facility, they pledge their valuable assets for a loan where repayment option is only EMI which hampers the cash flow of the firm/company. In an EMI repayment, interest is charged on the whole loan amount irrespective of whether the amount is fully utilized or not. But In an OD facility interest is charged on the utilized amount vis-a-vis number of days the amount is been utilized.

FEATURES AND BENEFITS

  • Interest to be charged on Utilization basis.
  • Interest to be charged only for number of days the amount is utilized.
  • No Pre-Payment penalty.

Machinery & Equipments

Balaji Credit services Pvt. Ltd. (BCSPL) facilitates Small Medium Enterprises (SME′s) and Corporate to avail loans to purchase machinery and equipments from leading NBFC and Banks without any additional collateral security or property.

With our long standing experience in debt syndication we encourage them to expand and compare with best loan products available in India. “Considering that major clients do have issues pertaining to margin since all financial institutions fund only 75% of the cost of machinery and equipments, we do have margin arrangements in form of short term loans for margin funding. In all we can help or clients get 100% of the value of machinery and equipments and facilitate growth of our clients irrespective of shortfall of capital or margin”.

FEATURES AND BENEFITS
  • Subsidy from government on machinery Loans for manufacturing units.
  • No Pre-Payment penalty.
  • No vintage required (Age of the firm can be less than 1 year).
  • Eligibility on projected Profitability.
  • Loans can be arranged to the tune of 100% of the project cost for vintage units.
  • Term Loans in Foreign currency for imported machinery.
  • Letter of Credit (LC) facility for imported machinery.
  • Buyers Credit (BC) facility for imported machinery.

Bank Guarantee

Bank guarantee is a guarantee from a lending institution ensuring the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank covers it. It also helps contractors and vendors whose performance is always asked by buyers and clients to be assured. In event of the vendor assuring the performance with liquid instruments, their cash flow gets stuck.

BCSPL advices its clients to issue a performance BG to such buyers and clients issued by leading Financial institutions and Banks. BCSPL also helps its clients to avail Bank Guarantee to raise advance from their buyers and clients.

FEATURES AND BENEFITS
  • No Pre-Payment penalty.
  • Eligibility on projected Turnover.
  • No vintage required (Age of the firm can be less than 1 year).
  • No interest charged.
  • Only opening charges applicable.

Letter of Credit

Letters of credit have been used for centuries to facilitate payment in international trade. Their use will continue to increase as the global economy evolves. A letter of credit is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. Due to the nature of international dealings, including factors such as distance, differing laws in each country, and difficulty in knowing each party personally, the use of letters of credit has become a very important aspect of international trade.

FEATURES AND BENEFITS
  • No Pre-Payment penalty.
  • Eligibility on projected Turnover.
  • No vintage required (Age of the firm can be less than 1 year).
  • No interest charged.
  • Only opening charges applicable.
  • Can also be in Foreign Currency.

Letter of Credit (LC Discounting)

Discounting of Letter of Credit (LC) is a short-term credit facility provided by the bank. LC discounting is actually a term used for ease in place of ‘LC Bill Discounting’, which means discounting of a bill backed by LC. In this arrangement, the sale of goods is made by the client on the strength of usage of the term ‘Export Letter of Credit (LC).’ Sellers may request that a buyer obtain a letter of credit from a financial institution prior to shipping goods. This is done to protect the seller against non Payment and the merchandise.

FEATURES AND BENEFITS
  • No Pre-Payment penalty.
  • Eligibility on projected Turnover.
  • No vintage required (Age of the firm can be less than 1 year).
  • No interest charged.
  • Only opening charges applicable.
  • Can also be in Foreign Currency.
  • No Collateral Security required.

Export Packing Credit

Packing Credit is nothing but a pre-shipment finance given to exporters with a low interest rate to boost exports. A packing credit loan will often be extended if a letter of credit has been issued by purchaser of the products that is based in another country or a confirmed order for exporting the goods exists.

Packing Credit is a pre-shipment finance given by bank to procure raw materials and arranging goods ready for export.

FEATURES AND BENEFITS
  • No Pre-Payment penalty.
  • Eligibility on projected Turnover.
  • Only opening charges applicable.
  • Can also be in Foreign Currency.