Benefits of Corporate Finance
Corporate finance involves the management of a company’s financial activities, capital structure, and strategic decision-making to maximize shareholder value. It encompasses various aspects such as raising capital, making investment decisions, managing risks, and optimizing the company’s overall financial performance. Corporate finance professionals analyze financial data, assess investment opportunities, and determine the most effective ways to allocate resources. Key areas include financial planning, capital budgeting, mergers and acquisitions, and the development of financial strategies to support the long-term goals of the organization. Ultimately, corporate finance plays a crucial role in ensuring a company’s financial health and sustainability in the competitive business environment.
Working Capital Loans
This is the most basic form of Corporate loan. This could be a Demand loan, or a Term loan based on the needs of the borrower. This loan is availed to meet the daily business needs. This loan can be availed either as a Cash Credit, Line of Credit or Overdraft facility.
Asset Backed Loans
Asset-based lending is the business of loaning money with an agreement that is secured by collateral that can be seized if the loan is unpaid.
This loan can be availed to procure necessary equipment to run the business. It can used for procuring medical equipment like scanning machines, x-ray machines etc; sewing machines for a textile factory, meat processing machines, grinding machines, and other similar equipment.
Corporate Term Loans
Business entities can avail various term loans to finance their immediate business needs, while waiting for a much larger and permanent source of funding. These loans are usually for smaller amounts and smaller periods of time. These loans have higher interest rates compared to other Corporate loans due to the high risk involved.
A bridge loan is a short-term form of financing that is used to meet current obligations before securing permanent financing. It provides immediate cash flow when funding is needed but is not yet available. A bridge loan comes with relatively high interest rates and must be backed by some form of collateral such as business inventory or real estate property.