Does a Bank Disburse a Machinery Loan Directly to the Supplier or to the Borrower?
Machinery Loan
Short Answer In most cases, a bank disburses a machinery term loan directly to the supplier, not to…
Can Electrical Fitting and Civil Work Be Included in the Machinery Project Cost?
Civil Work
Quick Answer Yes, in many cases. Electrical fittings and civil work that are directly needed to install and…
What Happens If the Machinery Supplier Changes Before Loan Disbursement?
Supplier Changes
Quick Answer If you change the machinery supplier before disbursement, the bank will normally pause the release of…
Can a New Business Get a Cash Credit Limit Without Previous Turnover?
Cash Credit Limit
Quick Answer Yes, it is possible, but not easy. A cash credit (CC) limit is normally sanctioned on…
Why Does a Bank Ask for a Monthly Stock Statement for Cash Credit?
Cash Credit
Quick Answer A bank asks for a monthly stock statement because a cash credit limit is secured by…
How Do Banks Decide the First Cash Credit Limit for a New Business?
First Cash Credit Limit
Quick Answer For a new business, banks usually decide the first cash credit limit from the projected working…
How Does a Moratorium Work in an MSME Term Loan?
MSME Term Loan
Quick Answer A moratorium is a period after the MSME term loan is sanctioned during which you do…
What Happens If the Stock Statement Is Lower Than the Cash Credit Limit?
Stock Statement
Quick Answer If your stock statement shows less stock and receivables than your cash credit (CC) limit needs,…
Is Interest Charged During the Moratorium Period of a Business Loan?
Moratorium
Short answer: In most cases, yes. A moratorium usually pauses the repayment of the principal, not the interest.…
Can a Business Loan Be Used for Both Machinery and Working Capital?
Machinery and Working Capital?
Short answer: Yes, in many cases. A bank can sanction a term loan for machinery and a separate…