Synergy Consulting

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General Banking Terms

Overdraft (OD) This is to meet your day to day requirement of funds; the banks can provide a flexible credit limit to enable you to plug any shortfalls in your cash flows. This is mainly given to against 100% security (like fixed deposits, pledge of shares, investments etc.).

Letter of Credit (LC) This is a secured/accepted mode of payment to your supplier and can be arranged as per the requirements.

Advances against Collections This is finance against an export shipment but without a supporting letter of credit, for a fixed period against the export documents.

Loans against Foreign Bills under LC This is a loan against export documents under letter of credit.

PDC Discounting This is finance against the presentation of postdated cheques from acceptable parties.

Loans against Sales Invoice This is finance against sales invoice to acceptable parties till you get the money from your customer.

Loans against Trust Receipt (TR) This loan is given as re-finance against a trust receipt to enable you to retire documents under a letter of credit, IDBC or open credit established on your behalf, so that you may have your shipment released. This is mainly given for a period of your stock holding.

Project Loans We facilitate the process of setting up your project, from planning until completion, and can arrange the finance as required. This is very popular for construction related companies.

Overdraft against Progress Payment Certificates (PPC) This is a part of project based finance. Although the Contract Consultant had certified tour progressive billing invoice for payment, there may be a time lag before the project owner can settle his liability under the Progress Payment Certificate (PPC). In such circumstances, you can get an overdraft/short term loan against the PPC.

Real Estate Loans This is loan against your assignment of the future rent receivable on your real estate assets, which need to be mortgaged in our favour until the loan is repaid.

Share Finance This is finance for the purchase of equity shares against the security of your existing, acceptable shares. The shares have to be legally pledged to the financial house.

Commercial Business Loans This is a structured business loan for commercial entities/professionals mainly based on the bank statements for 2-3 years.

Term Loans This is fixed sums of money for a fixed period (say 1-4 years), to meet your specific needs (warehouse construction, machinery purchase, shopping mall construction etc). Repayments can be made in a lump-sum or in installments, as per the projected cash flow.

Syndication and Participation For a large finance requirement, the risk of financing is often distributed over a number of lending institutions. We are strong in arranging this type of financing, and offer our services to well established customers.

Should you have any interest, please contact our Relationship Manager for a further clarification.

Note: This article can only serve as a guide, and specific advice must be taken in relation to any proposed requirement.

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