facility structure

5Cs is a model used to determine a potential borrower's creditworthiness

• true

• false

credit facilities which involve direct outflow of bank's fund to the borrower

• funded facilties

• unfunded facilities

• secured facilities

• unsecured facilities

facilities extended by banks which do not involve outgo of funds from the bunk to the borrower

• funded facilties

• unfunded facilities

• secured facilities

• unsecured facilities

assessing the amount of money the borrower or managment team has invested in the business , this is refer to

• capital

• collateral

• character

• capacity

An agreement by a bank to lend specific amount to a borrower on short-term basis, and to allow that amount to be borrowed again once it has been repaid.

• term loan

• revolving loan

• bridge loan

• credit card

a commitment from the bank to lend the borrower a specific amount, to finance a particular purpose, for a certain period of time normally varies between 3 up to 7 years, with specified interest rate and agreed upon term loan conditions

• term loan

• revolving loan

• bridge loan

• credit card

Revolving credit line does have set repayment schedules.

• TRUE

• FALSE

Cost of finance for long term borrowing is relatively higher than short-term borrowings

• true

• false

The installment amount is increasing by the time, which may be required in start-up projects, where the borrower's cash flow enhanced by the time

• Ascending installments

• Unequal installments

• Moratorium installments

• Conventional installments

the breach of a financial covenant results in the lender gaining the right to call the entire loan amount, collect collateral (if previously agreed upon) in exchange for the breach of a covenant agreement, or charge a higher interest rate on the loan than previously agreed upon

• true

• false