Non-fund-based finance isn’t physical fundings but more of a promise of financial support compared to actual funds. Non-based-credit limits as follows
Bank guarantees
Letter of credit
A bank guarantee is a guarantee from lenders that ensures the debtor will be able to repay the debt. If they can’t settle it, the bank covers it. A letter of credit is a legal document a bank can present that outlines payment will be made back by the business. A non-fund based credit limit allows businesses to use funds to help grow and develop their business without physical finance. The guarantee still lets a business
buy equipment or draw down loans and expand activity without having to handle the funds. Both types of working capital enable businesses to grow and invest in their activities to help improve the company's day-to-day running. This type of finance is becoming more popular with all kinds of businesses and whilst not all high street lenders or banks can offer businesses either fund-based and non-fundbased credit facilities, there is an increasing number of lenders that are able to.
Documents Required for Verification and Processing
Required Documents
Required Documents
Work orders /P.O from Buyers or concern Departments and related Documents
