Info abt fund based and non fund baded
This query is : Resolved
24 November 2013
can any one help me to understand what is fund based and non fund baded finanace?
24 November 2013
in fund based financing, the bank/financial institute actually transfer funds to the borrower. eg: term loan, cash credit, PCFC etc
In non-fund based, no funds are transferred to the borrower but a guarantee/comfort is given on behalf of the borrower to an external third party. eg bank guarantee, letter of credit
In non-fund based, no funds are transferred to the borrower but a guarantee/comfort is given on behalf of the borrower to an external third party. eg bank guarantee, letter of credit
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