Short answer: Do not guess and do not ignore the gap. Start from the GST returns turnover, adjust for items that GST and income tax treat differently, and compare the result with the revenue in your...
Short Answer In most cases, a bank disburses a machinery term loan directly to the supplier, not to the borrower. Payment is usually released against a valid invoice or proforma invoice, after you...
Quick Answer Yes, in many cases. Electrical fittings and civil work that are directly needed to install and run the machinery, such as the machine foundation, platform, wiring, panel and power...
Quick Answer If you change the machinery supplier before disbursement, the bank will normally pause the release of funds and review the new supplier’s quotation, specifications and price against...
Quick Answer Yes, it is possible, but not easy. A cash credit (CC) limit is normally sanctioned on the basis of stock, receivables, and turnover. A new business has no past turnover, so the bank...
Quick Answer A bank asks for a monthly stock statement because a cash credit limit is secured by your current assets, mainly stock and receivables, which change every month. The statement shows the...
Quick Answer For a new business, banks usually decide the first cash credit limit from the projected working capital requirement in your project report and CMA data, not from past sales. The bank...
Quick Answer A moratorium is a period after the MSME term loan is sanctioned during which you do not have to repay the principal. It is meant to give a new or expanding unit time to set up machinery...
Quick Answer If your stock statement shows less stock and receivables than your cash credit (CC) limit needs, your drawing power falls below the sanctioned limit. You can then withdraw only up to the...