How to prepare Budget for Bank Loans
What you'll learn
- Preparation of Budget for Bank Loans
- Basic knowledge of Accounting
- Basic knowledge of Banking
Are you a Finance Manager / Project Consultant, aspiring to learn how to prepare cash budget so you can obtain short term loan / Ad hoc Credit facilities / Letter of Credit facilities for your Organisation / Client?
Are a Banking Executive processing short term loans / ad hoc credit facilities on the basis of cash budget, but not sure how to analyse or approach Budget?
Then this course is for you - Welcome to your course How to prepare Budget for Bank Loans
By taking this course, you will learn
a) What is Budget?
b) Objectives of Preparing Budget
c) Who are the users of the Budget
d) When budget is insisted on lending?
Not only that, you will also get
e) Exposure to Budget Format
f) Simple Case Study
followed by real life Budgets explained in different scenarios.
So, what is Budget?
A budget is a plan. It is a plan for owners and managers to achieve their goals for the company during a specific time period. In this course, you will learn about Cash Budget in detail especially from the angle of raising short term funds from Banks.
The preparation of a cash budget is an important management task. While some small businesses may be able to survive for a time without budgeting, savvy business owners will realize its importance. A cash budget can protect a company from being unprepared for seasonal fluctuations in cash flow or prepare a company to take advantage of unexpected quantity discounts from suppliers.
A company’s cash position determines how suppliers will be paid, how a banker will respond to a loan request, how fast a company can grow, as well as directly influencing dividends, increases to owner’s equity, and profitability. A cash budget is a management plan for the most important factor of a company’s viability— its cash position.
Why Prepare a Cash Budget?
A cash budget is important for a variety of reasons. For one, it allows you to make management decisions regarding your cash position (or cash reserve). Without the type of monitoring imposed by the budgeting process, you may be unaware of the cash flow through your business. At the end of a year or a business cycle, a series of monthly cash budgets will show you just how much cash is coming into your company and the way it is being used. Seasonal fluctuations will be made clear.
A cash budget also allows you to evaluate and plan for your capital needs. The cash budget will help you assess whether there are periods during your operations cycle when you might need short-term borrowing. It will also help you assess any long-term borrowing needs. Basically, a cash budget is a planning tool for management decisions.
More discussions inside as video lectures - see you inside the course.
Who this course is for:
- Credit Analysts
- Credit Managers
- Loan Consultants
- Project Finance Consultants
- Chartered Accountants
- Credit Officers
I am a Chartered Accountant with tonnes of passion for teaching.
I teach Financial Management & Strategic Financial Management for Chartered Accountancy, Cost and Management Accountancy and Company Secretary students in Ernakulam, India. I also hold Post Graduate Diploma in Business Administration in Finance from Symbiosis, Pune and Bachelors in Commerce, from Loyola College, Chennai.
I worked in State Bank of India as Assistant Vice President - Credit for a period of four years after which i started my Chartered Accountancy Practice. During the stint in State Bank of India, I worked on credit proposals of Mid Corporate Units and gained good experience in Financial Analysis, Risk Assessment, Viability Study, Evaluating business models, Project Finance, Working Capital Management, etc.
I conduct work shops for Entrepreneurs, Chartered Accountancy / Cost and Management Accountancy Students on the topics like Project Finance, Credit Risk Assessment, Entrepreneurship Development, Finance for Non Finance Executives, etc.
I love teaching and i want fundamentals of accounting and finance to reach students and so i am here.