A Bank Loan is one of the most common forms of loan capital for a business. Bank can provide medium or long-term finance, a term of loan depends on the suitability of individual loan. The bank fixes a time period over which bank gives a loan as for 3, 5 or 10 years, a rate of interest, timing and amount of repayments. For the procedure of bank loan, bank demands some security or collateral, however, security condition changes in the case of a start-up, in the matters of start up security comes in the form of personal guarantees by an entrepreneur. Businessperson considers bank loan is beneficial for financing investment in fixed assets as plant, machinery, land, and buildings. Banks generally charge a lower rate of interest for a bank loan in the comparison of a bank overdraft.

Bank loans are a quick and straightforward way to sort out a funding need, which are usually provided in a lesser time. Generally, business firms take bank loans to purchase business premises, machinery or some other. It is also considered that a bank loan provides less flexibility than a bank overdraft. Failure to the payment of the loan may lead to putting the business into insolvency. Sometimes banks take care to not to offer a bank loan to startups or business who had a poor record of profitability and cash flow. Businesses, which are perceived as being high risk by banks, become more sensitive cases for the lending they offer.

If you are also an entrepreneur or going to have a start-up, you may be looking for a top bank loan consultant in your nearby area, your search confirm be ended with C.A. Piyush J Shah who works to give guidance about bank loan to business firms or individuals.