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प्रश्न
What are the advantages of borrowing from commercial banks?
उत्तर
- Banks provide funds to business firms as and when needed. Timely financial assistance is available.
- Banks keep the information given by borrowers confidential. The secrecy of business is maintained.
- Banks are an easier source of funds because issues of prospectus and underwriting formalities are not involved.
- A bank loan is a flexible source of finance, as the loan amount can be increased or repaid as per the needs of business.
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संबंधित प्रश्न
What is an overdraft?
For which of the following company has to keep it's assets on mortgage?
This implies procuring cash from a bank in exchange for credit instruments.
It is a formal and revolving credit agreement under which the borrower is allowed to borrow upto the specified limit.
______ are generally secured by assets or guarantees.
A company has to meet its short-term financial needs. It is considering whether it should raise loans from commercial banks or invite public deposits. Discuss the merits and demerits of each form.
Commercial banks generally provide long-term loans.
Term loans are a source of medium-term finance.
State the various forms of borrowing from commercial banks.
What are the disadvantages of borrowing from commercial banks?
