Asking for a Loan for a Business

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1. The company knows with certainty the annual use ( consumption ) of a particular item in stock.

Two . The speed at which the company uses the inventory is constant in time.

Three . Orders to replenish inventory stocks are exactly at that point in time when inventories reach zero .

Order Point:

Reorder Point:
This is the point at which the order of Stock - mind - equation expressed as:
Delivery time on X day everyday .

Lead time:
Is time normally takes receipt of delivery after placing orders with suppliers.

File security:
Involves additional inventories to be drawn down when actual delivery time and / or usage rates are higher than expected .

3) Based on Financial Statements
To have the assistance of banks , bankers must first evaluate the following :
1. Collateral Force .
Two . Inventory Position
Three . Some Financial Indicators
April . Payment of all requirements as income tax , wealth tax , interest on the debt, etc.
May . Documents of agreement of all persons authorized as bondholders , shareholders, etc.
6. All required documents.
7. Who is the buyer and the relationship of their country etc.

The main requirement for Banker 's Financial Statements for 3-5 years. This statement can judge the financial soundness of the Company. While the analysis of the financial strength of the company, the stock is also having its own role emphasis. Because if the company is to have less inventory requirement then your company
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