Funding through Financial institutions

Funding through Financial institutions

Financial Institutions play a very significant role in the finding process. They cater to the needs of high end investors by making available high amounts of capital for big projects in the industrial, infrastructure and service sectors. Credit availability for infrastructure sector is also extremely important. The success of any financial system can be fathomed by finding out the availability of reliable and adequate credit for infrastructure projects. Fortunately, during the past about one decade there has been increased participation of the private sector in infrastructure projects.

During a merger or takeover, generally funds are raised via loans from investment banks. This loan is offered at an interest rate and is payable to the bank after a specific period agreed to in loan agreement. More and more companies are depending on banks and other financial institutions for funding in business. These banks also advise the firm about the procedures to be carried out during the M&A.

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