Home - Mortgage Loans | Personal Loans | Bad Debt Loans | Foreclosure Loans
Apply for a Loan | Best Auto Loans | Best Bad Credit Auto Loans | Best Bad Credit Loans | Best Bill Consolidation Loans | Best Cash Advance Loans | Best Credit Cards | Best Credit Repair Tips | Best Debt Consolidation Loans | Best Free Credit Reporting Tips | Best Home Equity Loans | Best Mortgage Loans | Best Pay Day Loans | Best Personal Loans | Best Products on the Internet | Best Unsecured Loans
Great Financial Advice
Apply for a Loan
Latest Financial News
Rate Lock Advisory
Best Products
Join Our Mailing List
Contact Us
Loan Articles Index
Auto Loans
Bad Credit Auto Loans
Bad Credit Loans
Bill Consolidation Loans
Cash Advance Loans
Credit Cards
Credit Repair Tips
Debt Consolidation Loans
Debt Reduction Loans
Foreclosure Loans
Free Credit Reporting Tips
High Risk Loans
Home Equity Loans
Home Loans
Lawsuit Loans
Mortgage Loans
Pay Day Loans
Personal Loans
Products on the Internet
Real Estate Services
UK loans
Unsecured Loans
Loan Article Index
Loan Articles A-G
Loan Articles H-Q
Loan Articles R-Z
Mortgage Calculators
Mortgage Calculator
Mortgage Amortization Calculator
Rent vs. Buy Calculator
How Much Can I Afford Calculator
Auto Payment Calculator
Click here to Sign up for Email and Newsletter

 

redhotloantips fat loss


Corporate Loans - Funding Industrial Growth

Written by: Andrew Baker

If individuals thought that they were the only ones who had the use for loans, then corporate loans will show them that they are incorrect. The corporates, who are deemed to have a large surplus of cash, too find themselves at the mercy of the loan providers (though not in the strictest sense of the word).

The use for corporate loans may emerge out of two reasons. Firstly, there maybe a shortage of cash and the loan is required to substitute the cash shortage. Secondly, they feel that the cash balance will find more productive uses if the task at hand is accomplished with a loan.

The position of the corporates is not as vulnerable as that of ordinary individuals, when it comes to getting Corporate loans. Because of an increased bargaining power, corporates are able to grab a much better deal than individual borrowers.

Finance is the lifeblood of any business. Therefore, while it will be prudent not to make an injudicious use of corporate loans, it will neither be advantageous to starve the business of the much needed capital. Corporates risk its capital by taking business decisions- the grounds for profit. The risk taking capacity is severely stunted in the event of shortage of capital. A stunted risk taking capacity has its repercussions on the future of the corporate house.

Finding it too shocking to digest. This is however true. Shortage of funds was particularly behind many corporates not being able to complete assignments on time or not up to the quality standards stated.

Corporate loans come in a variety of forms. In this article we shall discuss about some of the most important corporate loans that businesses are making use of in the UK.

Real estate financing: Offices and factories are an important asset for the enterprises as all operations are conducted from this place/places. Banks and financial institutions finance the construction or purchase of an already built premise through real estate financing. Corporate loan of this form is similar to what is known as a mortgage. The important loans that are offered under real estate financing include land loan, property development loan, bridging loan for corporates and banker's guarantee.

Performance bonds and guarantees: Larger enterprises have to show that they are credible enough to get access to certain contracts. Corporate loan providers offer to guarantee the trustworthiness of the enterprise by issuing letter of guarantee, letter of indemnity, banker's guarantee and similar other documents pertaining to the credibility that a business house enjoys in the market. This becomes particularly important in modern day economy where business is conducted on a global scale. Businesses may be well known on a regional scale but globally it might be a minuscule. With the corporate loan provider vouching for the business, the standing of the business house greatly improves.

Stocks and shares financing: This facility is available for all types of enterprises whether private or public. Businesses can use the service at any stage of their life. Shares or unit trust, initial public offers (IPOs) and substantial shareholders are some of the methods used for financing business plans.

Debt capital market products: The method is again for public as well as private sector enterprises. This includes tasks such as underwriting or managing a variety of debt instruments. These can be suitably used for medium and long term financing. Some of the important components of these methods are syndicated loan facility, fixed rate bonds, floating and variable rate notes, and commercial papers. Syndicated loan facility can reduce dependence on one particular lender. The loans may be structured to meet the borrowers financial needs in the best possible manner.

The corporate loan will be repaid in the manner decided by the entrepreneur. The cash flows are the principal source of funding the repayment of corporate loans. Banks and financial institutions demand a guarantee or collateral from the borrower as a show of commitment to the project. Different lenders may define the clause of collateral amount and form differently. As with the loans offered to the individuals, corporate loan providers have a lien on the collateral offered. This will be exercised only when the loan has not been paid in full.

The dreams you ever saw for your business that were shelved because of the lack of adequate finance get a platform through which to be realised. Corporate loans provide this platform. Whatever be the needs of the business, from providing a continuous source of working capital to business expansion needs, corporate loans will always be useful.

Andrew baker has done his masters in finance from CPIT. He is engaged in providing free, professional, and independent advice to the residents of the UK.He works for the Secured loan web site uk finance world for any type of uk secured and unsecured loan please visit http://www.ukfinanceworld.co.uk
About the Author

Andrew baker has done his masters in finance from CPIT. He is engaged in providing free, professional, and independent advice to the residents of the UK.He works for the Secured loan web site uk finance world for any type of uk secured and unsecured loan please visit http://www.ukfinanceworld.co.uk


Other Related Articles:

Online Loans Made easy
What will it take for you to get a low interest, low payment loan? The answer to that question could be an online loan from one of the many companies that specializes in granting online loans, or e-loans. Some analysts forecast that as more...read more

Debt Consolidation Loans - Knowledge Is Power
A debt consolidation loan pays for multiple other loans or lines of credit. If you find yourself swimming in debt, this might be a good option. Debt consolidation loan is the best option when you have maxed out your credit cards and are yet...read more

Home Equity Loan Information - How to use One Wisely
Using a home equity loan to get out of debt or make improvements to your home is usually a smart move. You have earned the equity, so it only makes sense that you put it to good use. Usually this type of loan offers a lower interest rate than...read more


Return to Home

468x60

Best Auto Loans, Best Bad Credit Auto Loans, Best Bad Credit Loans, Best Bill Consolidation Loans, Best Cash Advance Loans, Best Credit Cards, Best Credit Repair Tips, Best Debt Consolidation Loans, Best Debt Reduction Loans, Best Foreclosure Loans, Best Free Credit Reporting Tips, Best High Risk Loans, Best Home Equity Loans, Best Home Loans, Best Lawsuit Loans, Best Mortgage Loans, Best Pay Day Loans, Best Personal Loans, Best Products on the Internet, Best Real Estate Services, Best UK loans, Best Unsecured Loans
Subscribe to Mailing List | Private Policy | Unsubscribe | Site Map