facility structure

5Cs is a model used to determine a potential borrower's creditworthiness

credit facilities which involve direct outflow of bank's fund to the borrower

facilities extended by banks which do not involve outgo of funds from the bunk to the borrower

assessing the amount of money the borrower or managment team has invested in the business , this is refer to

An agreement by a bank to lend specific amount to a borrower on short-term basis, and to allow that amount to be borrowed again once it has been repaid.

a commitment from the bank to lend the borrower a specific amount, to finance a particular purpose, for a certain period of time normally varies between 3 up to 7 years, with specified interest rate and agreed upon term loan conditions

Revolving credit line does have set repayment schedules.

Cost of finance for long term borrowing is relatively higher than short-term borrowings

The installment amount is increasing by the time, which may be required in start-up projects, where the borrower's cash flow enhanced by the time

the breach of a financial covenant results in the lender gaining the right to call the entire loan amount, collect collateral (if previously agreed upon) in exchange for the breach of a covenant agreement, or charge a higher interest rate on the loan than previously agreed upon