Every business needs finance for sure. It all depends on the requirements of funds for your business and the strength of the balance sheet. Generally a debt equity ratio of 2:1 is a good ratio. So if you have need of funds then make sure you don’t borrow more than the said ratio. Further, other issues are relating to the repayment capacity, own margin availability and the security to be offered. read more
CC and term loan are meant for specific purposes. Long term assets are supposed to be funded through term loans - Machinery, buildings, etc. Working capital gap is to be funded through cash credits. Generally term loans don’t need much of collateral security since the basic tangible asset is primary security. Cash credits need collateral security almost to the extent of 100% of loan. read more
At the moment one has to really assess the situation and take a call. This is a time for a more conservative approach in managing ones finances. No amount of adventurism is advisable. I suggest one should spend on a holiday to the extent his own purse permits rather than adding one more EMI repayment to his financial commitments. read more
