Tenure of the loan is a crucial aspect of business loans. Every business would want a flexible tenure and ideally time the EMI repayment with the cash flow cycle. This would enable ease of repayment as the liquidity situation can be comfortably managed in case of this kind of synchronization. Fintech players extend business loanswith tenures varying from 6months to 36 months. Further, lenders offer considerable flexibility to change the repayment frequency from monthly or quarterly as per the revenue model. It must be remembered that a lower tenure lowers the lending risk of the lender. However, a long tenure is suitable in case of a loan to finance capital expenditure. As per matching concept in accounting, the interest could be charged off as a business expenditure against the revenues generated from the fixed assets. However, a short term of 6-12 months is preferred in case of the working …
Whenever a baby born in this world he/she has wants so many things to outlive in this world equivalent to daylight, water, air (oxygen), milk, meals, clothings and shelter (housing) etc. a few of these requirements are met freely (free of price) like sunlight and oxygen and so on as a result of these can be found in abundance. These type of wants are ‘Non-financial Wants’ in Economics. But, to fulfill some other requirements ( like milk, food, clothings and shelter (housing) and many others) one has to pay something in change. One has to pay a value for these scarce assets in terms dollars (forex), different items & assets (for barter or alternate) or may has to render some service in exchange. Thus a lot of these necessities or desires are referred to as ‘Economic Wants’ in Economics. Therefore, the Economics studies that how the people meet their Economic …