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Working capital is the lifeblood and nerve centre of a business. Just as circulation of blood is essential in the human body for maintaining life. Working capital is very essential to maintain the smooth running of a business. No business, no undertakings, no enterprise can brings a sound solvency to the business. It also enables an undertaking in creating and maintaining goodwill.It also enables a business undertaking to pay off its current dues and also provides regular supply of raw materials. Adequate working capital provides inherent strength to the business undertaking and ability to face crisis. Working capital extremely essential for meeting the daily requirements of an organization. No organization can thrive even for a single day without adequate working capital. Meaning

Restructuring of NPA Loans:Debt Restructuring, a common practice globally, provides relief to distressed borrowers. The intent here is to support deserving businesses by extending loan tenures, putting interest payments on hold, converting debt into equity, issuing fresh term or working capital loans, waiving off the interest and so on.The RBI said it has been decided that banks should ensure that the unit taken up for restructuring achieves viability in eight years, if it is engaged in infrastructure activities, and in five years in other cases. We arrange restructuring of NPA accounts from NBFCs.The customer will not get a top up in such cases, but heshe can avail this facility to avoid distress sale of the property which is mortgaged to the bank financial institution.The interest rate is higher compared to bank and it vary from institution to institution as the case may be.

The basic purpose of Packing Credit Finance is to enable the exporter to procure, process, manufacture or store the goods for export. Packing credit refers to the credit granted by bank to an exporter to enable him to pack the goods. This is short-term working capital advance. Any exporter who has a confirmed export order or irrevocable Letter of Credit (LC) can apply for a Packing Credit Loan. Pre-shipment finance is both a fund based and non-fund-based advance. Banks sanction packing credit facility initially, for a period of 180 days, subject to the period involved in production cycle.Interest rate for the first 90 days will be cheaper, while the next 90 days will be still higher.

A bill discounting is a process that involves effectively selling a bill to a bank or similar entity for an amount that is slightly less than the par value and before the maturity date associated with the bill of exchange. The debtor tenders payment to the new owner of the discounted bill in the full amount agreed upon originally. This approach allows the issuer of the bill to receive cash before the actual due date associated with the bill, while also allowing the buyer to make a modest profit on the cash advance extended to the bills originator. One of the easiest ways to understand how bill discounting works is to consider a bill of exchange issued by ABC Company to its client, XYZ Company. ABC Company decides to cash in the outstanding bill in order to make use of the revenue now rather than later. To this end ABC approaches a bank with an offer to sell the bill for 90% of the par value. The bank looks over the transaction and decides the deal is viable. Upon approval, ABC receives 90% of the par value of the bill and instructs XYZ Company to remit payment to the bank. Once the bank receives full payment from XYZ, the deal is considered complete.

Real Estate Funding Under this facility the real estate developers builders can meet their liquidity requirements by raising finance for the acquisition of the land or construction of projects against the mortgage of land, existing properties or proposed projects etc. Features