Preparing project reports for setting up of new hospital
Loan Syndication
Loan syndication and Working Capital
Term Loan:
Higher investment in infrastructure results in higher returns. Internal accruals coupled with bank loans would result in higher investments in infrastructure compared to internal accruals alone. Banks generally provide ¾ of the total project cost as term loan. This increases an individual’s power to invest by 4 times. Hence, term loans are very important in setting up of new ventures.
Working Capital
It is generally observed that expenses are fixed in nature which need to be paid periodically, whereas, income may vary over the same period. Any period with more expense than income would result in non-payment of expenses and can lead to avoidable embarrassing situation. Cash credit limit from banks is recommended to avoid any temporary short-fall in income and expense.
Loans syndication services include
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Preparing project reports for acquiring existing hospital
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Deducing fund requirement for same (capital expenditure and day-to-day expenses)
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Arranging Term Loan for capital expenditure
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Arranging Working Capital for smooth running of day-to-day operations
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Assessing the requirement of funds for development of existing set-up and arranging the same
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Syndicating funds for other requirements
