Is your business going for a bank Term loan?

Is your business seeking Cash Credit,Over Draft etc., from Bank.

Is your business raising limits like LC,BG etc.

Are you converting your present working Capital into a Term Loan?

Are you applying for a Deferred Payment Guarantee Limit from bank?

Whatever be the situation the business unit has to submit business financials to the bank while asking for one or more of the above limits.

Lending to customer small/medium or Large is regulated by standard process as per RBI and banking practices.

As a customer the business is expected to fulfill the Credit Monitoring Arrangement also known as CMA.

As a Finance Manager or accountant of the company the job has to be handled by the responsible person namely you the FM or Accountant.

Preparing of CMA data calls for thorough understanding of the business,funding requirement,available options through bank.

Also one has to be thorough to fulfill the Paper work requirement for submissions to bank.

Not all will get opportunity to gain experience in doing a CMA work but may be compelled to deliver.At such times the knowledge gained through this guidance

session will come handy.

The knowledge on the business ratios,their implication in interpretation to ascertain financial health of a business are very essential and no one can escape.

It is better to be equipped to handle and get ready for Promotion to higher positions in office.

In case you are consultant/practitioner in raising funds then also this knowledge would come handy in submitting proposals on behalf of clients to bank.