Professional loans are used by business companies as a broad range of short and long-term funding needs to cover short-term funding deficits, pay for regular expenditures and buy land. There are more complicated financing products for businesses with unique needs, such as invoice factoring and merchant cash advances.
Last Updated Date: January 24, 2022
Nepal Bank Limited is the first financial institution of Nepal which was established on November 15, 1937 A.D (Kartik, 30, 1994). It was shaped under the principle of Joint undertaking (Joint project between govt. & regular public). NBL's licensed capital was once Rs. 10 million & issued capital Rs. 2.5 million of which paid-up capital used to be Rs. 842 thousand with 10 shareholders.. It is a national level bank. With the recent Follow-on Public Offer (FPO) offered in 2018, the bank has a share ratio of Government to Public as 51:49 percent. This bank has not provided dividends to shareholders for the last 21 years. It is currently trading at Nepal Stock Exchange with the symbol ‘NBL’. Nepal bank has appointed Civil Capital Market Limited as its share registrar. It focuses on building internet worth and assembly of minimal capital necessities within five years.
Professional Loan is specially designed for professionals working in diverse fields with a fixed monthly income and having good social standing to fulfill their financial requirement. The loan is designed such that it helps the professional overcome a liquidity crunch in times of need and avoid dipping into their savings. One of the most important features of this loan scheme is swift execution of loan process. Eligible professionals can obtain fund required within few days from the date of application for the loan. Further, the loan scheme is uncollateralized. The client does not have to go through cumbersome legal process for obtaining the required fund. A professional loan can be availed for requirements pertaining to business requirements such as purchase of equipment, business expansion, construction of business premises, renovating business premises, cash for working capital, amongst other business requirements. This loan can also be availed to finance work-related foreign trips, seminars and conferences. Professional loan is a funding or credit option extended to professionals such as doctors, chartered accountants, architects and others, for setting up and growing their business or practice. These are specifically meant for individuals with professional qualifications, and the loans are given based on their capabilities, expertise, track record, revenues, and reputation.
The type of professional loan sought depends on many factors, such as the nature of the practice, whether the borrower is a salaried individual and the purpose. Professionals can take loans for setting up their businesses, buying or renting premises, for expanding their business, staffing requirements, acquiring working capital, attending seminars and conferences, and also to tide over short-term requirements.
Commercial loans are granted to a variety of business entities, usually to assist with short-term funding needs for operational costs or for the purchase of equipment to facilitate the operating process. In some instances, the loan may be extended to help the business meet more basic operational needs, such as funding for payroll or to purchase supplies used in the production and manufacturing process. These loans often require that a business posts collateral, usually in the form of property, plant or equipment that the bank can confiscate from the borrower in the event of default or bankruptcy. Sometimes cash flows generated from future accounts receivable are used as a loan's collateral. Mortgages issued to commercial real estate are one form of commercial loan.