Long term financing

financial management presentation with a good amount of field work regarding Long term financing visiting various banks in the city

1. long term financing

2. What is long term financing ?

3. WHY LONG TERM FINANCE To finance fixed permanent/fixed long term assets To finance fixed permanent/fixed working capital To finance growth and expansion of business

4. Need for long term financing To finance fixed assets . To finance the permanent part of  working capital . Expansion of companies. Increasing facilities. Construction projects on a big scale. Provide capital for funding the operations. This helps in adjusting the  cash flow .

5. Factors determining Long-term Financial Requirements Nature of Business Nature of Goods produced Technology used

6. SOURCES OF LONG TERM FINANCE EQUITY SHARE CAPITAL PREFERENCE SHARE CAPITAL REATAINED EARNINGS

7. Equity share capital Types of Equity shares Merits and demerits Evaluation from company’s view point

8. Preference share capital Types of Preference shares Merits and demerits Features of Preference shares

9. RETAINED EARNINGS FEATURES Cost of financing Floatation cost Legal formality ADVANTAGES Cheaper source of finance Financial stability Market value DISADVANTAGES In proper utilization Over capitalization Low rate of dividend

10. Raising long term finance Initial public offer(IP O ) Secondary public offer Preferential allotment Venture capital/private equity transactions Obtaining term loan

11. LONG TERM FINANCE GIVEN IN SBI BANK Housing loan :at 8.65% upto 30yrs max Education loan:11.25% upto 10years+course period Vehicle loan: white board-80% ,yellow board-75% Tractor loan:10%

12. icici COMMERCIAL BUSINESS LOAN Commercial vehicles Construction equipment Specific interest rate applicable to a customer would be based on factors such as customer profile, relationship and tenure of loan etc. LOANS AGAINST SECURITIES This facility is available against the following securities: Demat shares Mutual Fund units Fixed Maturity plans (FMP) Exchange Traded Funds (ETF) Insurance Policies Savings Bonds   PERSONAL LOAN – rate 11.59% upto 20lakhs, tenure 1-5 years   CAR LOAN - 100% ex-showroom price of the car, with interest rates 9.10-13.25%, tenure 7 years