Bala ji Traders Ltd- rsquo- is a company that deals in the wholesale business of rice- Its financial manager- Mr- Sharma arranges unsecured short term finance for the company through Arvind Traders- firm rsquo-s commission agent- The rate of interest to be paid on this finance is more than the bank rsquo-s rate of interest- Identify this source of finance and state any three features of the identified source-

Dear student. The source of finance here is Unsecured Short term loan nbsp; Features : Unsecured business loans are small business financing options in ...

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Bala ji Trade...

Question

Bala ji Traders Ltd.’ is a company that deals in the wholesale business of
rice. Its financial manager, Mr. Sharma arranges unsecured short term
finance for the company through Arvind Traders, firm’s commission
agent). The rate of interest to be paid on this finance is more than the
bank’s rate of interest. Identify this source of finance and state any three
features of the identified source.

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Solution

Dear student.
The source of finance here is Unsecured Short term loan
Features :

Unsecured business loans are small business financing options in which borrower don't have to offer a collateral for the loan . Unlike secured business loans, unsecured loans won’t require you to offer up any property to secure your financing. These loans are given on the basis of a borrower’s financial history, credit ranking.

Very less paperwork and documentation is required for unsecured loans.

Loans are granted quickly and can be made available even in a span of few minutes through some providers like some agencies or personal contacts etc.

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