4 unit asset & fund based financial services
TRANSCRIPT
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
1/188
ASSET & FUND BASED ASSET & FUND BASED
FINANCIAL SERVICESFINANCIAL SERVICES
11/27/15 1
VIJAY,
MBA,VAAGESWARI COLLEGE,
KARIMNAGAR, TELANGANA.
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
2/188
FACTORING
• Due to globaliatio! t"e#e a#e a$%a!tage a!$ $i'a$%a!tage( I) *e t"i!+ t"e e,o!$ -a#t. t"e#e "a bee! alo*$o*! i! e,o!oi, a,ti%it0 globall0(
• Fi!a!,ial a#+et all o%e# t"e *o#l$ a#e )a,i!g #oug" *eat"e#(I! t"i ,e!a#io. a!agee!t o) ,a" a!$ #e,ei%able i o)utot i-o#ta!,e to bot" ,o#-o#ate gia!t a!$ all )i#
• a!0 bui!ee "a%e ,olla-e$ )o# *a!t o) liui$it0( T"e+e0 to u,,e lie i! ,o!%e#ti!g ,#e$it ale i!to ,a" *it"i! a"o#t -e#io$ o) tie(
11/27/15 2
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
3/188
• T"e#e a#e a!0 t#a$itio!al et"o$ u," a
bill $i,ou!ti!g. ,o!ue# ,#e$it t"#oug")i!a!,ial i!te#e$ia#ie et,(. to #aie "o#tte# )u!$(
• Re,e!tl0. !e* )i!a!,ial e#%i,e. u," aFACT3RIN4 & F3RFAITIN4. "a%e ,oe
i!to eite!,e to ait t"e )i!a!,i!g o),#e$it ale a!$ t"e#eb0. "el- t"e bui!e
u!it to ti$e o%e# t"e liui$it0 ,#u!,"(
11/27/15 6
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
4/188
• Fa,to#i!g i a ,o!ti!ui!g a##a!gee!t
bet*ee! a )i!a!,ial i!te#e$ia#0 +!o*! at"e )a,to# a!$ a bui!e ,o!,e#! t"e ,lie!t8*"e#eb0 t"e )a,to# -u#,"ae t"e ,lie!t9
a,,ou!t #e,ei%able/boo+ $ebt eit"e# *it"o# *it"out #e,ou#e o-tio!8 t"e ,lie!t(
• T"i #elatio! e!able t"e )a,to# to ,o!t#ol t"e,#e$it ete!$e$ to t"e ,utoe# a!$a$i!ite# t"e ale le$ge#(
11/27/15 :
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
5/188
• Bei$e -u#,"ae o) a,,ou!t
#e,ei%able. )a,to# a0 -#o%i$e a *i$e#a!ge o) e#%i,e u," a t"e )ollo*i!g;
• C#e$it a!agee!t a!$ ,o%e#i!g t"e
,#e$it #i+ i!%ol%e$(•
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
6/188
• Fa,to#i!g i a ,olle,tio! a!$ )i!a!,e e#%i,e
$eig!e$ to i-#o%e t"e ,lie!t9 elle#98 ,a")lo* b0 tu#!i!g "i ,#e$it ale i!%oi,e i!to #ea$0,a"(
T=E 3RI4IN 3F FACT3RIN4;T=E 3RI4IN 3F FACT3RIN4;
o$e#! )a,to#i!g ,ae i!to eite!,e i! t"eo$e#! )a,to#i!g ,ae i!to eite!,e i! t"e
1>2?(1>2?(
Fa,to#i!g a )i!a!,i!g agai!t #e,ei%able got aFa,to#i!g a )i!a!,i!g agai!t #e,ei%able got agoo$ i! t"e 1>6?(goo$ i! t"e 1>6?(
But. t"e#e *a !o ,o-lete )#ae*o#+ o)But. t"e#e *a !o ,o-lete )#ae*o#+ o)
tatuto#0 la* )o# a )a,to#i!g a##a!gee!t(tatuto#0 la* )o# a )a,to#i!g a##a!gee!t(11/27/15 @
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
7/188
I! t"e U. )a,to#i!g ,ae i!toI! t"e U. )a,to#i!g ,ae i!to
eite!,e i! t"e )o# o) i!%oi,eeite!,e i! t"e )o# o) i!%oi,e$i,ou!ti!g($i,ou!ti!g(
I! 1>7@. t"e lea$i!g )a,to#i!gI! 1>7@. t"e lea$i!g )a,to#i!g
,o-a!ie o) t"e U )o#e$ t"e,o-a!ie o) t"e U )o#e$ t"e
Ao,iatio! o) B#iti" Fa,to# ABF8( Ao,iatio! o) B#iti" Fa,to# ABF8(No* it i -#ea$i!g all o%e# t"e *o#l$(No* it i -#ea$i!g all o%e# t"e *o#l$(
11/27/15 7
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
8/188
FACTORING MECHANISM
• T"e ,lie!t e!$ a! i!%oi,e to "i ,utoe# i! t"e uual*a0 but a$$ a !oti)i,atio! t"at t"e i!%oi,e i aig!e$to a!$ ut be -ai$ to t"e )a,to# *it" *"o "e "a
a$e a! a##a!gee!t(
• T"e ,lie!t. t"e! ubit ,o-ie o) i!%oi,e to t"e )a,to#*it" a ,"e$ule o) o))e# a,,o-a!ie$ b0 t"e #e,ei-t.
$eli%e#0 ,"alla!. o# a!0 ot"e# %ali$ -#oo) o) $i-at,"(
11/27/15
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
9/188
• T"e )a,to# -#o%i$e -#e-a0e!t u- to ? o) t"e i!%oi,e%alue a!$ )ollo*'u- *it" t"e ,utoe# )o# #ealiatio! o)-a0e!t $ue(
• T"e bala!,e -a0e!t i a$e ie$iatel0 o!#ealiatio!(
• T"e )a,to# e!$ a o!t"l0 tatee!t o) a,,ou!t to t"e
,lie!t to +ee- "i i!)o#e$ o) t"e )a,to#e$ i!%oi,e(
11/27/15 >
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
10/188
FACTORINGMECHANISM
11/27/15 1?
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
11/188
CUSTOMER
CLIENT
FACTOR
1
FACTORING TRANSACTION
11/27/15 11
• 1( Cutoe# -la,e a! o#$e#
*it" t"e ,lie!t )o# goo$a!$/o# e#%i,e o! ,#e$it,lie!t $eli%e# t"e goo$ a!$
e!$ i!%oi,e to ,utoe#(
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
12/188
2
CUSTOMER
CLIENT
FACTOR
1
FACTORING TRANSACTION
11/27/15 12
2. Client send invoices to factor.
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
13/188
2
CUSTOMER
CLIENT
FACTOR
16
FACTORING TRANSACTION
11/27/15 16
6( )a,to# a+e
-#e-a0e!t u- to ?to ,lie!t a!$ e!$-e#io$i,al tatee!t(
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
14/188
2
CUSTOMER
CLIENT
FACTOR
16
:
FACTORING TRANSACTION
11/27/15 1:
:( o!t"l0 tatee!t o)a,,ou!t to ,utoe#a!$ )ollo*'u-(
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
15/188
2
CUSTOMER
CLIENT
FACTOR
16
:
5
FACTORING TRANSACTION
11/27/15 15
5( ,utoe# a+e-a0e!t to )a,to#(
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
16/188
2
CUSTOMER
CLIENT
FACTOR
16
:
5
@
FACTORING TRANSACTION
11/27/15 1@
@( Fa,to# a+ebala!,e 2?-a0e!t o!#ealiatio!
to t"e ,lie!t(
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
17/188
2
CUSTOMER
CLIENT
FACTOR
16
:
5
@
FACTORING TRANSACTION
11/27/15 17
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
18/188
11/27/15 1
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
19/188
• Factorin co!"anies in India#
• Can$an% Factors Li!ited# &tt"#''(((.can$an%factors.co!
• S)I Factors and Co!!ercial Services *vt. Ltd# &tt"#''(((.s$ifactors.co!
• T&e Hon%on and S&an&ai )an%in Cor"orationLtd# &tt"#''(((.&s$c.co.in'+'2'cor"orate'trade,and,factorin,services
• Fore!ost Factors Li!ited# &tt"#''(((.fore!ostfactors.net
• Glo$al Trade Finance Li!ited# &tt"#''(((.tfindia.co!
• E-"ort Credit Garantee Cor"oration of IndiaLtd# &tt"s#''(((.ecc.in'*ortal'"rodctnservices'!atrit/'!factorin.as"
• Citi$an% NA0 India# &tt"#''(((.citi$an%.co.in
• S!all Indstries 1evelo"!ent )an% of IndiaSI1)I3# &tt"#''(((.sid$i.in'fac.as"
• Standard C&artered )an%# (((.standardc&artered.co.in11/27/15 1>
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
20/188
Factorin c&ares#• FINANCE CHARGE; Fi!a!,e ,"a#ge i ,o-ute$ o! t"e
-#e-a0e!t outta!$i!g i! t"e ,lie!t9 a,,ou!t at o!t"l0i!te#%al( Fi!a!,e ,"a#ge a#e o!l0 )o# )i!a!,i!g t"at "abee! a%aile$( T"ee ,"a#ge a#e iila# to t"e i!te#etle%ie$ o! t"e ,a" ,#e$it )a,ilitie i! a ba!+(
• SER4ICE FEE# It i a !oi!al ,"a#ge le%ie$ at o!t"l0i!te#%al to ,o%e# t"e ,ot o) e#%i,e. !ael0. ,olle,tio!.ale le$ge# a!agee!t et,( t"i )ee i $ete#i!e$ o!
t"e bai o) ,#ite#ia u," a t"e g#o ale %alue. t"e!ube# o) ,utoe#. t"e !ube# o) i!%oi,e a!$ t"e$eg#ee o) ,#e$it #i+ #e-#ee!te$ b0 t"e ,utoe# et,(
11/27/15 2?
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
21/188
• Bot" t"ee ,"a#ge ta+e! toget"e#,o-a#e %e#0 )a%o#abl0 *it" t"e
i!te#et #ate ,"a#ge$ b0 ba!+ a!$)i!a!,ial i!titutio! )o# "o#t'te#bo##o*i!g(
11/27/15 21
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
22/188
A$%a!tage o) Fa,to#i!g;
• Fa,to#i!g i be!e)i,ial to t"e ,lie!t. ,utoe# a!$ ba!+(
• )ENEFITS TO CLIENT#
T"e ,lie!t9 ,#e$it ale a#e ie$iatel0 ,o!%e#te$ i!to#ea$0 ,a" a t"e )a,to# a+e a -a0e!t o) a#ou!$ ?
o) t"e )a,to#e$ i!%oi,e i! a$%a!,e(
T"e ,lie!t ,a! o))e# ,o-etiti%e ,#e$it te# to "i bu0e#*"i,". i! tu#!. e!able "i to i!,#eae "i ale a!$
-#o)it(
T"e ,a" #ealie$ )#o ,#e$it ale ,a! be ue$ toa,,ele#ate -ee$ u-8 t"e -#o$u,tio! ,0,le(
11/27/15 22
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
23/188
T"e ,lie!t i )#ee )#o t"e te!io! o) o!ito#i!g "iale le$ge# a!$ ,a! ,o!,e!t#ate o! -#o$u,tio!.a#+eti!g a!$ ot"e# a-e,t(
it" t"e abo%e -oi!t. #e$u,tio! i! o%e#"ea$ e-e!ea!$ a! i!,#eae i! ale a!$ -#o)it ,a! be ta+e -la,e(
E))i,ie!t a!agee!t o) o!e ,o-o!e!t ,a! "a%e-oiti%e i-a,t o! ot"e# ,o-o!e!t( Fo# ea-le. a!i!,#eae i! liui$it0 e!able t"e )i# to a%ail o)
$i,ou!t o! -u#,"ae o) #a* ate#ial(
T"e ,lie!t ,a! e-a!$ "i bui!e b0 e-lo#i!g !e*a#+et(
11/27/15 26
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
24/188
Be!e)it to ,utoe# Bu0e#8Be!e)it to ,utoe# Bu0e#8
• Fa,to#i!g )a,ilitate t"e ,#e$it -u#,"ae o) t"e,utoe# a t"e0 get a$euate ,#e$it -e#io$(
• Cutoe# a%e o! ba!+ ,"a#ge a!$ e-e!e(
• T"e ,utoe# "a !ot to )u#!i" a!0 $o,ue!t( =e
"a ut to a,+!o*le$ge t"e !oti)i,atio! lette#. t"at i. a!u!$e#ta+i!g to a+e -a0e!t o) t"e i!%oi,e to t"e)a,to#(
11/27/15 2:
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
25/188
• Cutoe# a#e )u#!i"e$ *it"-e#io$i,al tatee!t o) outta!$i!g
i!%oi,e b0 t"e )a,to#(
• Fa,to#i!g $oe !ot i-i!ge e!,#oa,"8
o! t"e ,utoe#9 #ig"t(
11/27/15 25
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
26/188
BENEFITS T3 BANS;
• Fa,to#i!g i-#o%e liui$it0 o) t"e ,lie!ta!$. t"e#eb0. i-#o%e t"e ualit0 o)
a$%a!,e o) ba!+( Fa,to#i!g i !ot at"#eat to ba!+i!g. it i a )i!a!,ial e#%i,e,o-lee!ta#0 to t"at o) t"e ba!+(
11/27/15 2@
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
27/188
INTERNATI3NAL FACT3RIN4INTERNATI3NAL FACT3RIN4
• "e! t"e elle# a!$ bu0e# a#e lo,ate$ i! $i))e#e!t ,ou!t#ie a!$ a)a,to#i!g ag#eee!t ta+e -la,e it i ,alle$ I!te#!atio!al Fa,to#i!g(
• I!te#!atio!al Fa,to#i!g )a,ilitate I!te#!atio!al T#a$e(
• It i a ,o-#e"e!i%e ,o-lete8 #a!ge o) #e,ei%able a!agee!t
a!$ )i!a!,i!g e#%i,e *"e#ei! a )a,to# -#o%i$e a! e-o#te# *it" atleat t*o o) t"e )ollo*i!g e#%i,e;
C#e$it gua#a!tee(
C#e$it a!agee!t a!$ ba$ $ebt -#ote,tio!(
Fi!a!,e u- to >? o) t"e i!%oi,e %alue o! "i-e!t to a--#o%e$$ebto#(
Colle,tio! e#%i,e(
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
28/188
E-o#t #e,ei%able t"at ,a! be )a,to#e$ "oul$ "a%e t"e)ollo*i!g ,"a#a,te#iti,;
T"e bu0e#9 ,ou!t#0 "oul$ be ,o%e#e$ b0 t"e )a,to#(
T"e e-o#te#9 -e#)o#a!,e obligatio! "oul$,o-lete$ at t"e tie. t"e e-o#te# -#ee!t a! i!%oi,e
)o# -#e-a0e!t(
T"e#e "oul$ be ulti-le "i-e!t o# a ,o!ti!uouale )lo* o! a! o!goi!g bai *it" t"e ae bu0e# o#
bu0e#(
Fa,to#i!g t#a!a,tio! a#e bet uite$ )o# ,#e$it -e#io$u- to 1? $a0(
11/27/15 2
INTERNATIONAL FACTORING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
29/188
INTERNATIONAL FACTORING TRANSACTION
>
IM*ORTER
1
2 6
:
5 @
E5*ORTER
E5*ORT FACTORIM*ORT FACTOR
1?G7H
2
11/27/15 2>
INTERNATIONAL FACTORING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
30/188
INTERNATIONAL FACTORING TRANSACTION
>
IM*ORTER
2 6
:
5 @
E5*ORTER
E5*ORT FACTORIM*ORT FACTOR
1?G7H
2
11/27/15 6?
+. Receives t&e order
INTERNATIONAL FACTORING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
31/188
INTERNATIONAL FACTORING TRANSACTION
>
IM*ORTER
2
6
:
5 @
E5*ORTER
E5*ORT FACTORIM*ORT FACTOR
1?G7H
11/27/15 61
+. Receives t&e order
2 C r e d i t l i ! i t r e 6 e s t
2 Credit li!it re6est
INTERNATIONAL FACTORING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
32/188
INTERNATIONAL FACTORING TRANSACTION
>
IM*ORTER
2
6
:
5 @
E5*ORTER
E5*ORT FACTORIM*ORT FACTOR
1?G7H
11/27/15 62
+. Receives t&e order
2 C r e d i t l i ! i t r e 6 e s t
7 . A " " r o v a l
2 Credit li!it re6est
INTERNATIONAL FACTORING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
33/188
INTERNATIONAL FACTORING TRANSACTION
>
IM*ORTER
2
6 5 @
E5*ORTER
E5*ORT FACTORIM*ORT FACTOR
1?G7H
11/27/15 66
+. Receives t&e order
2 .
C r e d i t l i ! i t r e 6 e s t
7 . A " " r o v a l
2 Credit li!it re6est
8. 1elivers oods
INTERNATIONAL FACTORING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
34/188
INTERNATIONAL FACTORING TRANSACTION
>
IM*ORTER
2
6
5
@
E5*ORTER
E5*ORT FACTORIM*ORT FACTOR
1?G7H
11/27/15 6:
+. Receives t&e order
2 .
C r e d i t l i ! i t r e 6 e s t
7 . A " " r o v a l
2 Credit li!it re6est
8. 1elivers oods
9 .
S $ ! i t s d
o c ! e n t s
INTERNATIONAL FACTORING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
35/188
INTERNATIONAL FACTORING TRANSACTION
>
IM*ORTER
2
6
5
@
E5*ORTER
E5*ORT FACTORIM*ORT FACTOR
1?G7H
11/27/15 65
+. Receives t&e order
2 .
C r e d i t l i ! i t r e 6 e s t
7 . A " " r o v a l
2 Credit li!it re6est
8. 1elivers oods
9 .
S $ ! i t s d
o c ! e n t s
: . * r e " a / ! e n t
INTERNATIONAL FACTORING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
36/188
INTERNATIONAL FACTORING TRANSACTION
>
IM*ORTER
2
6
5
@
E5*ORTER
E5*ORT FACTORIM*ORT FACTOR
1?
G7H
11/27/15 6@
+. Receives t&e order
2 .
C r e d i t l i ! i t r e 6 e s t
7 . A " " r o v a l
2 Credit li!it re6est
8. 1elivers oods
9 .
S $ ! i t s d
o c ! e n t s
: . * r e " a / ! e n t
;. 1oc!ents
INTERNATIONAL FACTORING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
37/188
INTERNATIONAL FACTORING TRANSACTION
>
IM*ORTER
2
6
5
@
E5*ORTER
E5*ORT FACTORIM*ORT FACTOR
1?
G7H
11/27/15 67
+. Receives t&e order
2 .
C r e d i t l i ! i t r e 6 e s t
7 . A " " r o v a l
2 Credit li!it re6est
8. 1elivers oods
9 .
S $ ! i t s d
o c ! e n t s
: . * r e " a / ! e n t
;. 1oc!ents < .
C o l l e c t i o n
INTERNATIONAL FACTORING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
38/188
INTERNATIONAL FACTORING TRANSACTION
>
IM*ORTER
2
6
5
@
E5*ORTER
E5*ORT FACTORIM*ORT FACTOR
1?
G7H
11/27/15 6
+. Receives t&e order
2 .
C r e d i t l i ! i t r e 6 e s t
7 . A " " r o v a l
2 Credit li!it re6est
8. 1elivers oods
9 .
S $ ! i t s d
o c ! e n t s
: . * r e " a / ! e n t
;. 1oc!ents < .
C o l l e c t i o n
=. *a/!ent re!ittance
INTERNATIONAL FACTORING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
39/188
INTERNATIONAL FACTORING TRANSACTION
>
IM*ORTER
2
6
5
@
E5*ORTER
E5*ORT FACTORIM*ORT FACTOR
1?
G7H
11/27/15 6>
+. Receives t&e order
2 .
C r e d i t l i ! i t r e 6 e s t
7 . A " " r o v a l
2 Credit li!it re6est
8. 1elivers oods
9 .
S $ ! i t s d
o c ! e n t s
: . * r e " a / ! e n t
;. 1oc!ents < .
C o l l e c t i o n
+ > . ) a l a
n c e * a / ! e n t
=. *a/!ent re!ittance
INTERNATIONAL FACTORING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
40/188
INTERNATIONAL FACTORING TRANSACTION
>
IM*ORTER
2
6
5
@
E5*ORTER
E5*ORT FACTORIM*ORT FACTOR
1?
G7H
11/27/15 :?
+. Receives t&e order
2 .
C r e d i t l i ! i t r e 6 e s t
7 . A " " r o v a l
2 Credit li!it re6est
8. 1elivers oods
9 .
S $ ! i t s d
o c ! e n t s
: . * r e " a / ! e n t
;. 1oc!ents < . C o l l e c t i o n
=. *a/!ent re!ittance
+ > . ) a l a
n c e * a / ! e n t
INTERNATIONAL FACTORING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
41/188
INTERNATIONAL FACTORING TRANSACTION
>
IM*ORTER
1
2 6
:
5 @
E5*ORTER
E5*ORT FACTORIM*ORT FACTOR
1?G7H
2
11/27/15 :1
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
42/188
1( Re,ei%e t"e o#$e#
2( C#e$it liit #euet
6( A--#o%al
:( Deli%e# goo$
5( Subit $o,ue!t
@( (
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
43/188
• IN S=3RT;
T"e e-o#te# "i- t"e goo$ to t"e i-o#te#(
T"e e-o#te# aig! "i i!%oi,e t"#oug" t"e e-o#t)a,to# to t"e i-o#t )a,to# *"o au#e t"e ,#e$it #i+ a-e# -#io# a##a!gee!t8(
T"e e-o#t )a,to# -#e'-a0 t"e i!%oi,e(
T"e i-o#te# -a0 t"e -#o,ee$ to t"e i-o#t )a,to#. *"o
t#a!)e# t"e aou!t t"e e-o#t )a,to#(
T"e e-o#t )a,to# $e$u,t -#e'-a0e!t al#ea$0 a$e a!$ot"e# ,"a#ge a!$ -a0 t"e bala!,e -#o,ee$ to t"e
e-o#te#(11/27/15 :6
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
44/188
E5*ORTER?SE5*ORTER?S )ENEFITS)ENEFITS• A )a,to# aue all ,oe#,ial ,#e$it a!$ -oliti,al #i+(
• A! i-o#t )a,to# o))e# ,#e$it #i+ -#ote,tio! i! ,ae t"e bu0e# $oe !ot-a0 i!%oi,e *it"i! >? $a0 o) t"e $ue $ate(
• T"e#e i a #e$u,tio! i! t"e a$i!it#ati%e ,ot a t"e e-o#te# i $eali!g*it" o!l0 o!e e-o#t )a,to#. i##e-e,ti%e o) t"e !ube# o) ,ou!t#ie
i!%ol%e$(
• It e!able t"e e-o#te# to o))e# o-e! a,,ou!t te# to uali)ie$,utoe# a!$ ,o-ete *it" o%e#ea u--lie#(
• Valuable i!)o#atio! o! t"e ta!$i!g o) t"e )o#eig! bu0e# o! t#a$e,uto a!$ a#+et -ote!tial i -#o%i$e$ to t"e e-o#te# to e-a!$ t"ebui!e( T"i elii!ate t"e ,ot o) gat"e#i!g ,#e$it i!)o#atio!(
• A! i-o#t )a,to# )ollo* t"e #e,ei%able a!$ -ee$ u- t"e ,olle,tio!(11/27/15 ::
)ENEFITS TO IM*ORTERS)ENEFITS TO IM*ORTERS
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
45/188
)ENEFITS TO IM*ORTERS)ENEFITS TO IM*ORTERS
• =e ,a! -a0 i!%oi,e i! t"e ,ou!t#0 lo,all0(
• =e $eal *it" t"e lo,al age!,0. i(e(. t"e i-o#t)a,to#(
• i!iu $o,ue!tatio! i #eui#e$(
3T=ER T=IN4S;
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
46/188
RBI 4UIDELINES;
• T"e RBI iue$ gui$eli!e i! ul0 1>>? to-#o%i$e a tatuto#0 )#ae*o#+ to e!ableba!+ to ,a##0 out )a,to#i!g(
• T"e ba!+ a#e -e#itte$ to et u-ubi$ia#ie/i!%eti!g )a,to#i!g ,o-a!ie oi!tl0 *it" ot"e# ba!+ *it" t"e -#io#
a--#o%al o) RBI(• Ba!+ a#e alo -e#itte$ to u!$e#ta+e
)a,to#i!g $e-a#te!tall0(
11/27/15 :@
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
47/188
• Fa,to#i!g ,o-a!ie "oul$ !ot)i!a!,e ot"e# )a,to#i!g ,o-a!ie(
• A ba!+ ,a! i!%et i! t"e "a#e o) t"e
)a,to#i!g ,o-a!ie i!,lu$i!g it)a,to#i!g ubi$ia#ie(
• But it "oul$ !ot e,ee$ 1? o) t"e
-ai$ u- ,a-ital a!$ #ee#%e o) t"e ba!+i! agg#egate(
11/27/15 :7
SOME OF THE FACTORING COM*ANIES
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
48/188
SOME OF THE FACTORING COM*ANIES
• SBI Fa,to# a!$ Coe#,ial Se#%i,e SBI FACS8 Lt$( It*a t"e )i#t )a,to#i!g i! I!$ia *"i," ta#te$ )u!,tio!i!g i!
A-#il 1>>1(
• It *a -#oote$ oi!tl0 b0 t"e SBI. U!io! Ba!+ o) I!$ia &SIDBI(
• Ca!ba!+ Fa,to# Lt$( a oi!tl0 -#oote$ b0 t"e Ca!a#aBa!+. A!$"#a Ba!+ & SIDBI i! 1>>7(
• Fo#eot Fa,to# Lt$( FFL8 it *a et u- a a oi!t
%e!tu#e *it" Natio!al Ba!+ o) Ae#i,a i! 1>>7(• 4lobal T#a$e Fi!a!,e Lt$ 4TF8. it *a -#oote$ oi!tl0 b0
E-o#t'I-o#t EJI8. Ba!+ o) I!$ia. I!te#!atio!al Fi!a!,eCo#-o#atio! a!$ et LB. 4e#a!0(
11/27/15 :
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
49/188
F3RFAITIN4F3RFAITIN4
• T"e *o#$ KF3RFAIT ea! i! F#e!," Kto #eli!ui"Su##e!$e#8 a #ig"t(
• I! t"i. a! e-o#te# u##e!$e# "i #ig"t to a #e,ei%able$ue at a )utu#e $ate i! e,"a!ge )o# ie$iate ,a"-a0e!t. at a! ag#ee$ $i,ou!t. -ai!g all #i+ a!$#e-o!ibilitie )o# ,olle,ti!g t"e $ebt to t"e )o#)aite#(
• Fo#)aiti!g i t"e $i,ou!ti!g o) i!te#!atio!al t#a$e#e,ei%able o! a M!o!'#e,ou#e9 bai(
11/27/15 :>
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
50/188
• "i," ea! t"at t"e#e i !o ,oeba,+ o! a!e-o#te# i) t"e i-o#te# $oe !ot -a0(
• A )o#)aite# $e$u,t i!te#et i! t"e )o# o)$i,ou!t8 at a! ag#ee$ #ate )o# t"e )ull ,#e$it-e#io$ ,o%e#e$ b0 t"e #e,ei%able(
• T"i 0te *a o#igi!all0 ue$ i! t"e Eu#o-e,ou!t#ie i! t"e 1>@?( But late# it i ue$ all o%e#
t"e *o#l$( I! 1>>2. t"e RBI a--#o%e$ Fo#)aiti!g aa! e-o#t )i!a!,i!g i! I!$ia(
11/27/15 5?
• T"i i ge!e#all0 uitable )o# "ig" %alue e-o#t li+e "ea%0
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
51/188
• T"i i ge!e#all0 uitable )o# "ig" %alue e-o#t li+e "ea%0a,"i!e#0. ,a-ital goo$. ,o!ue# $u#able. %e"i,le.bul+ ,oo$itie. ,o!t#u,tio! ,o!t#a,t a!$ -#oe,te-o#t(
• =o*e%e#. !ot a!0 e-o#te# "a%e a$o-te$ t"i o-tio!.be,aue t"e ao# -#oble i t"at t"e i!iu aou!t
o) t#a!a,tio! -#e,#ibe$ b0 )o#eig! ba!+ o))e#i!g t"ie#%i,e i 2.5?.???(
• T"i aou!t i too "ig" )o# a! a%e#age e-o#te# i! I!$ia(
T"i "a bee! #e$u,e$
• Lo!$o! bae$ et e#,"a!t Ba!+ *"i," i -#o%i$i!gt"i e#%i,e i! I!$ia. "a )ie$ t"e i!iu aou!t o)
t#a!a,tio! at 1.??.???(11/27/15 51
INTERNATIONAL FACTORING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
52/188
INTERNATIONAL FACTORING TRANSACTION
>
IM*ORTER
1
2 6
:
5 @
E5*ORTER
E5*ORT FACTORIM*ORT FACTOR
1?G7H
2
11/27/15 52
1ifference $et(een factorin and forfaitin
A FLO@ CHART OF A FORFAITING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
53/188
A FLO@ CHART OF A FORFAITING TRANSACTION
2
1
E5*ORTER IM*ORTER
5
@ 7
FORFAITER)AN
:
1?
>
6
11/27/15 56
A FLO@ CHART OF A FORFAITING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
54/188
A FLO@ CHART OF A FORFAITING TRANSACTION
2
E5*ORTER IM*ORTER
5
@ 7
FORFAITER)AN
:
1?
>
6
11/27/15 5:
+ .
C o !
! i t ! e n t t o " r c & a s e d e $ t
A FLO@ CHART OF A FORFAITING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
55/188
A FLO@ CHART OF A FORFAITING TRANSACTION
E5*ORTER IM*ORTER
5
@ 7
FORFAITER)AN
:
1?
>
6
11/27/15 55
+ .
C o !
! i t ! e n t t o " r c & a s e d e $ t
2. Co!!ercial contract
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
56/188
A FLO@ CHART OF A FORFAITING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
57/188
E5*ORTER IM*ORTER
5
@ 7
FORFAITER)AN
1?
>
11/27/15 57
+ .
C o !
! i t ! e n t t o " r c & a s e d e $ t
2. Co!!ercial contract
7. 1eliver/ of oods
8.Gives
ara
ntee
A FLO@ CHART OF A FORFAITING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
58/188
E5*ORTER IM*ORTER
@ 7
FORFAITER)AN
1?
>
11/27/15 5
+ .
C o !
! i t ! e n t t o " r c & a s e d e $ t
2. Co!!ercial contract
7. 1eliver/ of oods
8.Gives
ara
ntee
9. Hands over doc!ents
A FLO@ CHART OF A FORFAITING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
59/188
E5*ORTER IM*ORTER
7
FORFAITER)AN
1?
>
11/27/15 5>
+ .
C o !
! i t ! e n t t o " r c & a s e d e $ t
2. Co!!ercial contract
7. 1eliver/ of oods
8.Gives
ara
ntee
9. Hands over doc!ents
: .
1 e l i v e r s d o c
! e n t s
A FLO@ CHART OF A FORFAITING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
60/188
E5*ORTER IM*ORTER
FORFAITER)AN
1?
>
11/27/15 @?
+ .
C o !
! i t ! e n t t o " r c & a s e d e $ t
2. Co!!ercial contract
7. 1eliver/ of oods
8.Gives
ara
ntee
9. Hands over doc!ents
: .
1 e l i v e r s d o c
! e n t s
; .
M a % e s " a /
! e n t
A FLO@ CHART OF A FORFAITING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
61/188
E5*ORTER IM*ORTER
FORFAITER)AN
1?
>
11/27/15 @1
+ .
C o !
! i t ! e n t t o " r c & a s e d e $ t
2. Co!!ercial contract
7. 1eliver/ of oods
8.Gives
ara
ntee
9. Hands over doc!ents
: .
1 e l i v e r s d o c
! e n t s
; .
M a % e s " a /
! e n t
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
62/188
E5*ORTER IM*ORTER
FORFAITER)AN
1?11/27/15 @2
+ .
C o !
! i t ! e n t t o " r c & a s e d e $ t
2. Co!!ercial contract
7. 1eliver/ of oods
8.Gives
ara
ntee
9. Hands over doc!ents
: .
1 e l i v e r s d o c
! e n t s
; .
M a % e s " a /
! e n t
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
63/188
E5*ORTER IM*ORTER
FORFAITER)AN
11/27/15 @6
+ .
C o !
! i t ! e n t t o " r c & a s e d e $ t
2. Co!!ercial contract
7. 1eliver/ of oods
8.Gives
ara
ntee
9. Hands over doc!ents
: .
1 e l i v e r s d o c
! e n t s
; .
M a % e s " a /
! e n t
. *a/!ent to t&e forfaiter
A FLO@ CHART OF A FORFAITING TRANSACTION
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
64/188
2
1
E5*ORTER IM*ORTER
5
@ 7
FORFAITER)AN
:
1?
>
6
11/27/15 @:
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
65/188
1( Coite!t to -u#,"ae $ebt
2( Coe#,ial ,o!t#a,t
6( Deli%e#0 o) goo$:( 4i%e gua#a!tee
5( =a!$ o%e# $o,ue!t
@( Deli%e# $o,ue!t7( a+e -a0e!t
( ( Re-a0 at atu#it01?(
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
66/188
VENTURE CAPITAL
4ENTURE CA*ITAL4ENTURE CA*ITAL
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
67/188
• T"e ,o-a!ie e!gage$ i! t#a$itio!al li!e o)bui!e ,a! eail0 -#o,u#e !e,ea#0 )i!a!,ial,a-ital )#o t"e ,o!%e!tio!al ,a-ital a#+etou#,e li+e
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
68/188
=AT IS VENTURE CA
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
69/188
• VC i a )u!$ t"at i a%ailable )o# i!%ete!t i! a!e!te#-#ie *"i," o))e# t"e -#obabilit0 o) -#o)italo!g *it" t"e -oibilit0 o) lo(
• T"i i alo ,alle$ RIS CA
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
70/188
• T"i )i!a!,i!g i ,oo!l0 ao,iate$ *it" t"eeuit0 i!%ete!t )o# a tie -e#io$ i! aall/e$iu bui!e *it" "ig" g#o*t"-ote!tial. "ig" #e*a#$ a!$ #i+(
• T=E AIN FEATURES 3F VC;
1(I!%ete!t a#e ge!e#all0 a$e i! euit0(
2( I!%ete!t a#e a$e i! !e* e!te#-#ie. ui!g!e* te,"!olog0. to -#o$u,e !e* -#o$u,t. i!e-e,tatio! o) "ig"e# gai!(
6(A VC i!%eto# ai!tai! a ,loe ,o!ta,t *it" a!e!t#e-#e!eu# to a)egua#$ "i i!%ete!t but$oe !ot i!te#)e#e i! t"e a!agee!t o) t"ee!te#-#ie(
11/27/15 7?
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
71/188
:( Ve!tu#e Ca-italit9 a--#oa," $i))e# )#o t"eto,+ a#+et i!%eto# a!$ t"e ba!+e#( =e,o!ti!uoul0 +ee- a ,loe *at," o%e#
bui!e(
5( VC i!%ete!t i !ot liui$. A %e!tu#e ,a-italit,a!!ot #ealie "i o!e0 o! $ea!$( T"e#e i
!o #e-a0e!t ,"e$ule( T"e i!%ete!t i loti) t"e e!te#-#ie i u!u,,e)ul(
11/27/15 71
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
72/188
VENTURE CA
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
73/188
• T"e ta#ti!g -oi!t o) t"e e%aluatio!
-#o,e b0 t"e Ve!tu#e Ca-ital I!titutio!VCI8 i t"e bui!e -la! o) t"e %e!tu#e,a-ital u!$e#ta+i!g -#oote#8(
• T"e0 "oul$ ,o!i$e# )eaibilit0 o) t"e-#oe,t. -#oe,t "ito#0. t#a,+ #e,o#$ o) t"e
e!t#e-#e!eu#. a#+et -ote!tial. )utu#etu#!o%e#. -#o)itabilit0 a!$ t"#eat et,(.
11/27/15 76
VC INVESTENT
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
74/188
VC INVESTENT
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
75/188
11/27/15 75
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
76/188
11/27/15 7@
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
77/188
11/27/15 77
STAGES OF FINANCING
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
78/188
2.LATER STAGE2.LATER STAGE
STAGES OF FINANCING
+.EARLB STAGE+.EARLB STAGE
A( See$ Ca-ital/-#e'ta#t ,a-ital
C( Se,o!$ #ou!$ )i!a!,i!g
B( Sta#t'u- Ca-ital
A( De%elo-e!t Ca-ital
B( B#i$ge/E-a!io! Ca-ital
C( Bu0out
D( Tu#!a#ou!$
11/27/15 7
A Seed Ca"ital'"re start ca"italA Seed Ca"ital'"re,start ca"ital
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
79/188
• T"i tage i ee!tiall0 a! Ma--lie$ #eea#,"9
-"ae *"e#e t"e ,o!,e-t a!$ i$ea o)-#oote# ,o!titute t"e bai o) a -#e',oe#,ialiatio! #eea#," -#oe,t uuall0e-e,te$ to e!$ i! a -#otot0-e t#ial -#o$u,t8
*"i," a0 o# a0 !ot lea$ to a bui!elau!,"(
• T"i -"ae g#a$uall0 o%e to*a#$ t"e
$e%elo-e!t -"ae lea$i!g to a -#otot0-eo$el8 -#o$u,t teti!g a!$ t"e! to,oe#,ialiatio!(
A. Seed Ca"ital'"re,start ca"italA. Seed Ca"ital'"re,start ca"ital
11/27/15 7>
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
80/188
• T"e ai! #i+ at t"i tage i
a#+eti!g #elate$( T"e #i+ -e#,e-tio!o) i!%ete!t at t"i tage i et#eel0"ig"(
• Ve#0 )e* VCI i!%et i! t"e tage o)-#o$u,t $e%elo-e!t( T&is ca"ital iscalled as a seed ca"ital
11/27/15 ?
• It i a tage *"e! -#o$u,t/e#%i,e i
). Start," Ca"ital). Start," Ca"ital
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
81/188
• It i a tage *"e! -#o$u,t/e#%i,e i,oe#,ialie$ )o# t"e )i#t tie i! ao,iatio!
*it" a VCI(• T"i i t"e tage *"e! ,oe#,ial a!u)a,tu#i!g"a to ,oe!,e( VC )i!a!,i!g "e#e i -#o%i$e$)o# -#o$u,t $e%elo-e!t a!$ i!itial a#+eti!g(
• It i!,lu$e e%e#al t0-e o) !e* -#o$u,t u," a;Ne* bui!e i! *"i," t"e ,o-a!0 "a goo$
+!o*le$ge a!$ *o#+i!g e-e#ie!,e(
Ne* -#oe,t b0 etabli"e$ ,o-a!ie A !e* ,o-a!0 -#oote$ b0 a! eiti!g ,o-a!0
*it" liite$ )i!a!,e to ,oe#,ialie !e*te,"!olog0(11/27/15 1
T"i i " "i " " $ " l $
C. Second rond financinC. Second rond financin
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
82/188
• T"i i t"e tage at *"i," t"e -#o$u,t "a al#ea$0bee! lau!,"e$ i! t"e a#+et but t"e bui!e
"a !ot. 0et be,oe -#o)itable e!oug" )o# -ubli,o))e#i!g to att#a,t !e* i!%eto#(
• T"e -#oote# "a i!%ete$ "i o*! )u!$ but)u#t"e# i!)uio! o) )u!$ b0 t"e VCI i !e,ea#0(T"e VCI -#o%i$e la#ge# )u!$ at t"i tage t"a!t"e ea#l0'tage )i!a!,i!g(
• T"i )i!a!,i!g i -a#tl0 i! t"e )o# o) $ebt alo-#o%i$e$(
11/27/15 2
2.LATER STAGE2.LATER STAGE
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
83/188
• T"i tage o) VC )i!a!,i!g i!%ol%e etabli"e$bui!ee *"i," #eui#e a$$itio!al *o#+i!g,a-ital a!$ )o# e-a!io! o) t"e bui!e(
• T"e #i+ a!$ *aiti!g -e#io$ i!%ol%e$ i! t"i
tage a#e le( Ve!tu#e ,a-ital )u!$ ,a! "a%eie$iate i!,oe i! t"e )o# o) $i%i$e!$ o#,a-ital gai!(
• T"e $i))e#e!t ub'tage o) t"e late# tage a#e;
11/27/15 6
A. 1evelo"!ent Ca"italA. 1evelo"!ent Ca"ital
It i t" )i i ) t bli " $ b i "i "
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
84/188
• It i t"e )i!a!,i!g o) etabli"e$ bui!e *"i,"#eui#e a$$itio!al )i!a!,ial u--o#t but ,a!!ot
ta+e #eou#,e to -ubli, iue(• T"i etabli"e$ bui!ee *"i," "a%e
o%e#,oe t"e et#eel0 "ig"'#i+ ea#l0 tage."a%e #e,o#$e$ -#o)it )o# a )e* 0ea# but a#e 0et
to #ea," a tage *"e! t"e0 ,a! go -ubli, a!$#aie o!e0 )#o t"e ,a-ital a#+et
• U!$e# t"i. t"e VC )i!a!,e i ue$ to -u#,"ae
o) !e* eui-e!t/-la!t. e-a!io! o) a#+eti!ga!$ $it#ibutio! )a,ilitie. #e')i!a!,e o) eiti!g$ebt. -e!et#atio! "a a tie')#ae o) o!e to 60ea# a!$ )all i! t"e e$iu #i+ ,atego#0(
11/27/15 :
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
85/188
• T"i )i!a!,e b0 VCI i!%ol%e lo* #i+-e#,e-tio! a!$ a tie')#ae o) 1 to 6 0ea#(
• Ve!tu#e Ca-ital u!$e#ta+i!g ue u," )i!a!,eto e-a!$ bui!e b0 *a0 o) g#o*t" o) t"ei#o*! -#o$u,ti%e aet o# b0 t"e a,uiitio! o)
ot"e# )i#/aet o) ot"e# )i#(
). )ride'E-"ansion Ca"ital). )ride'E-"ansion Ca"ital
11/27/15 5
C. )/otsC. )/ots
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
86/188
• "i," i-lie t#a!)e# o) a!agee!t ,o!t#ol( T"e0)all i!to t*o ,atego#ie(
i8a!agee!t Bu0 3ut B38; I! t"i VCI -#o%i$e)u!$ to e!able t"e ,u##e!t o-e#ati!g
a!agee!t/i!%eto# to a,ui#e a! eiti!g-#o$u,t li!e8/bui!e(
ii8 a!agee!t Bu0 I! BI8 a#e )u!$ -#o%i$e$ to e!able
a! outi$e g#ou- Oo) a!age#8Pto bu0 a! o!goi!g ,o-a!0( T"e0 b#i!g 6 elee!t toget"e#; a a!agee!t tea a ta#get
,o-a!0 a!$ a! i!%eto#
11/27/15 @
1. Trnaronds1. Trnaronds
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
87/188
• "i," i!%ol%e bu0i!g t"e ,o!t#ol o) a i,+,o-a!0(
• T*o +i!$ o) i!-ut a#e #eui#e$ i! t"i. t"e0 a#e
3NEQ AND ANA4EENT(
• T"e VCI "a%e to i$e!ti)0 goo$ a!agee!t
a!$ o-e#atio! lea$e#"i- i! t"i(
11/27/15 7
)ENEFITS OF 4ENTURE CA*ITAL)ENEFITS OF 4ENTURE CA*ITAL
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
88/188
TO THE ENTRE*RENEUR#
Fill t"e ga- i! t"e o*!e#9 )u!$ i! #elatio! to t"e
ua!tu a #eui#e$ o# allo*e$ aou!t. e-e,iall0a! aou!t o) o!e0 legall0 -a0able i! $aage8 o)euit0 #eui#e$ i! t"e lau!,"i!g o) t"e !e* bui!e(
=el- t"e e!te#-#ie to get t"ei# *o#+i!g ,a-ital#eui#ee!t(
Ait t"e e!t#e-#e!eu# to #e,#uit -#o)eio!all0uali)ie$ a!$ +ille$ -e#o!!el to ,a##0 out-#o$u,tio! a!$ a!agee!t oot"l0(
11/27/15
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
89/188
)ENEFITS)ENEFITS TO THE IN4ESTORSTO THE IN4ESTORS
• T"e #i+ o) t"e !e* %e!tu#e i bo#!e b0 t"e VC)u!$( T"e )u!$ $o*!loa$ t"ei# "a#e o!l0a)te# -#o)itable )u!,tio!i!g o) t"e ,o-a!ie(
• Si!,e t"e i!%eto# i!%et o!l0 a)te# t"e,o-a!0 ta#t ea#!i!g -#o)it. t"e #i+ i lea!$ it e!u#e a "ealt"0 g#o*t" o) t"e ,a-itala#+et(
11/27/15 >
)ENEFITS TO THE COM*ANB)ENEFITS TO THE COM*ANB
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
90/188
)ENEFITS TO THE COM*ANB)ENEFITS TO THE COM*ANB
• VC -#o%i$e )i!a!,e to e-lo#e %at "uge8u!utilie$ -ote!tial a!$ tale!t(
• ?
HISTORBHISTORB
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
91/188
HISTORBHISTORB
• T"e ,o!,e-t o) VC )u!$ o#igi!ate$ i! US )#ot"e 0ea# 1>:@(
• T"e -#ee!t $a0 gia!t big8 li+e A--le.i,#oo)t. ,Do!al$ a!$ Je#o a#e t"ebe!e)i,ia#ie o) t"e Ve!tu#e Ca-ital Fu!$( T"eo%e#all u,,e o) VC i! t"e US e!,ou#age$
ot"e# ,ou!t#ie to a$o-t t"e ,o!,e-t o) VCF a*ell(
11/27/15 >1
• T"e g#o*t" o) VC i! I!$ia i o) #e,e!t o#igi!(
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
92/188
g gVC )u!$ *it" i!itial ,a-ital o) R(1? ,#o#e *aetabli"e$ b0 IDBI i! t"e 0ea# 1>5(
• I!$ia *a att#a,te$ to t"e be!e)it o) Ve!tu#eCa-ital Fu!$ )o# t"e -#ootio! o) "ig"'te,"i!$ut#ie(
• Te,"!olog0 De%elo-e!t a!$ I!)o#atio!Co-a!0 o) I!$ia TDICI8. a oi!t %e!tu#e o)UTI. ICICI a!$ IDBI -#o%i$e ea#l0 tage )i!a!,eto t"e -#oe,t i! t"e )o# o) ee$ ,a-ital(
• C#e$it Ca-ital Ve!tu#e I!$ia8 Lt$(. *a et u- i!t"e -#i%ate e,to# i! t"e 0ea# 1>>(
11/27/15 >2
• Ri+ Ca-ital a!$ Te,"!olog0 Fi!a!,e
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
93/188
Ri+ Ca-ital a!$ Te,"!olog0 Fi!a!,eCo#-o#atio! o) I!$ia RCTL8 to )u!$ -#oe,ti!%ol%i!g !e* te,"!olog0 i etabli"e$ b0I!$ut#ial Fi!a!,e Co#-o#atio! o) I!$ia(
• Fi!a!,ial aita!,e i gi%e! i! t"e )o# o) euit0
-a#ti,i-atio!(
• IFCI %e!tu#e ,a-ital )u!$ lt$(. i t"e !e* !ae
o) RCTL(• Ve!tu#e Ca-ital Fu!$ "oul$ #egite# *it" SEBI
a!$ a$"e#e to it gui$eli!e(
11/27/15 >6
To" cities attractin ventre ca"ital invest!ents
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
94/188
CITIES SECTORS
MUM)AISoft(are services0 )*O0 Media0 Co!"ter ra"&ics0Ani!ations0 Finance )an%in
)ANGALORE All I* led co!"anies0 IT ITES0 )io,tec&nolo/
1ELHI Soft(are services0 ITES 0 Teleco!
CHENNAI IT 0 Teleco!
HB1ERA)A1 IT ITES0 *&ar!aceticals
*UNE )io,tec&nolo/0 IT 0 )*O
CRE1IT RATINGCRE1IT RATING
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
95/188
• I! t"e -#ee!t ,o-etiti%e a#+et. t"e#e a#e lot o),o-a!ie a#e i! t"e a#+et to #aie o!e0 )o# t"ei#
bui!e(
• It i $i))i,ult )o# t"e i!%eto# to u$ge. *"et"e# a!i!%ete!t i a)e a!$ #eliable o# !ot(
• T"e#e)o#e. to "el- t"e i!%eto# a+e a $e,iio! o!i!%ete!t. t"e !ee$ )o# a! i!$e-e!$e!t a!$ #eliableage!,0 *a )elt to #ate $ebt obligatio! o) t"e ,o-a!ie(
• T"u. ,#e$it #ati!g age!,0 ,ae i!to eite!,e(• C#e$it #ati!g age!,0 ea! a bo$0 ,o#-o#ate. *"i," i
e!gage$ i! t"e bui!e o) #ati!g o) e,u#itie o))e# b0*a0 o) -ubli, o# #ig"t iue(
11/27/15 >5
A $i t C $it R ti A i
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
96/188
A,,o#$i!g to C#e$it Rati!g Age!,ieRegulatio! 1>>>. #ati!g ea!;
A! o-i!io! #ega#$i!g e,u#itie(
E-#ee$ i! t"e )o# o) ta!$a#$0bol(
Aig!e$ b0 a ,#e$it #ati!g age!,0(
Ue$ b0 a! iue# o) u," e,u#itie(
11/27/15 >@
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
97/188
Rati!g i e-#ee$ i! al-"abeti,al o#al-"a!ue#i, 0bol o! t"e bai o) t"eu!$e#l0i!g ,#e$it ualit0 o) t"e $ebt i!t#ue!t(
It $oe !ot #e,oe!$ bu0i!g. "ol$i!g o#elli!g a!$ it i !ot bae$ o! au$it(
It o!l0 aee a!$ gi%e o-i!io! )o# a -e,i)i,-u#-oe(
11/27/15 >7
HISTORB
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
98/188
1>7 CRISIL *a etabli"e$
1>>1 ICRA *a et u-
1>>: CARE ,ae i!to eite!,e
1>>@ ' Du)) a!$
HISTORB
Credit Ratin Infor!ation
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
99/188
Credit Ratin Infor!ation
Services of India Ltd
11/27/15 >>
Invest!ent and Credit
Ratin Aenc/ of India Ltd
Credit Anal/sis and
Researc& Ltd
CLASSIFICATION OF CRE1IT RATINGCLASSIFICATION OF CRE1IT RATING
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
100/188
CLASSIFICATION OF CRE1IT RATINGCLASSIFICATION OF CRE1IT RATING
+. 1e$entre and )ond Ratin; lo!g te#
i!t#ue!t li+e $ebe!tu#e a!$ bo!$ o),o#-o#ate bo$ie. go%e#!e!t a#e #ate$ b0 t"e#ati!g age!,ie(
Debe!tu#e #ati!g i t"e -#ia#0 a!$ ao#bui!e o) t"e ,#e$it #ati!g age!,0(
DEBENTURE RATIN4
11/27/15 1??
2( E6it/ Ratin; T"e #ati!g o) euitie o) t"e
http://credit-rating.pdf/http://credit-rating.pdf/
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
101/188
,o-a!ie i ,alle$ euit0 g#a$i!g(
Euit0 #ati!g i %e#0 ,oo! to i!te#!atio!al,a-ital a#+et(
At -#ee!t. euit0 #ati!g i u!$e#ta+e! b0 #ati!gage!,ie i! I!$ia alo(
C#e$it #ati!g age!,0 C#iil "a aig!e$ t"e "ig"et 5/58g#a$e to t"e -#o-oe$ i!itial -ubli, o))e# I
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
102/188
6. Fi-ed 1e"osit and Certificate of
1e"osit ratin; T"ee a#e t"ee$iu te# i!t#ue!t #ate$ b0 t"e#ati!g age!,ie( T"e )ie$ $e-oit
-#o%iio! o))e#e$ b0 t"e )i!a!,e,o-a!ie a!$ ,o#-o#ate bo$ie a#e#ate$ to e!u#e t"ei# a)et0 a!$
e,u#it0(
11/27/15 1?2
• =DFC Fie$ $e-oit $etail
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
103/188
=DFC Fie$ $e-oit $etail
• De-oit ,o!ti!ue$ to g#o* $u#i!g FQ11( A
o! a#," 61. 2?11. outta!$i!g $e-oittoo$ at 2:.@25 ,#o#e( T"e $e-oito# baetoo$ at a--#oiatel0 >(@7 la+"( CRISIL
a!$ ICRA "a%e )o# t"e itee!t" ,o!e,uti%e0ea#. #ea))i#e$ t"ei# AAA #ati!g )o# =DFC9$e-oit( T"i #ati!g #e-#ee!t "ig"et
a)et0. att#a,ti%e #etu#! a!$ -e#)e,t e#%i,eta!$a#$ a #ega#$ tiel0 #e-a0e!t o)-#i!,i-al a!$ i!te#et(
11/27/15 1?6
:. Co!!ercial "a"er ratin; T"i "o#t'te#
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
104/188
i!t#ue!t i alo #ate$ b0 t"e age!,ie(
Re-ute$ a!$ "ig" ou!$ ,o#-o#ate bo$ie iue,oe#,ial -a-e# to t"e -ubli, a!$ )i!a!,iali!titutio!(
It "a bee! a$e a!$ato#0 )o# t"e ,oe#,ial
-a-e# to get #e%ie*e$ a!$ #ate$ b0 t"e #ati!gage!,0(
5( L*G'erosene dealers'fir!s ratin; T"ei!it#0 o) -et#oleu a!$ !atu#al ga#e,oe!$e$ a a!$ato#0 e%aluatio! o) all-#i%ate ,o-a!ie elli!g L
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
105/188
CRISIL/CARE/ICRA(
It i a$e a!$ato#0 )o# t"e ,o-a!ie to$i,loe t"ei# #ati!g to t"e -ubli,(
@( C"it )u!$ #ati!g; it i !ot a!$ato#0. oe o)
t"eel%e get #ate$(CRISIL #ate ,"it )u!$ i!,o#-o#ate$ a -ubli,
o# -#i%ate ,o-a!ie *it" a i!iu !et *o#t"
R(5 La+" a!$ a! o-e#ati!g t#a,+ #e,o#$ o) 1?0ea#(
11/27/15 1?5
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
106/188
7(Real etate $e%elo-e# #ati!g; T"i #ati!g i )o#a -a#ti,ula# -#oe,t a!$ !ot )o# t"e ,o-a!0 aa *"ole(
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
107/188
TO IN4ESTORS;
+.Assess!ent of credi$ilit/; Rati!g aee t"e
t#e!gt" a!$ *ea+!e o) t"e ,o-a!0/$ebti!t#ue!t o! t"e bai o) ,e#tai! -#e$ete#i!e$)a,to#(
It i be!e)i,ial to t"e i!%eto# to u!$e#ta!$ t"e
,#e$ibilit0 o) t"e iui!g ,o-a!0(
2. Ris% Indicator# all t"e i!%eto# a0 !ot -oet"e #eui#e$ +!o*le$ge a!$ i!)o#atio! )o# ,#e$it
e%aluatio!( I! t"i ,o!tet . i!%eto# ,a! i$e!ti)0 t"e#i+ ao,iate$ *it" t"e *it" t"e 0bol aig!e$to t"e i!t#ue!t b0 t"e ,#e$it #ati!g age!,0(
11/27/15 1?7
6( *rotects aainst $an%r"tc/; T"e )i!a!,ial
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
108/188
" /
t#e!gt" o) t"e iui!g ,o-a!0 aee$ t"#oug",#e$it #ati!g(
=ig" #ati!g aig!e$ to t"e $ebt e,u#it0 o) a,o-a!0 i!$i,ate a a)e i!%ete!t(
:( Eas/ to nderstand; T"e #ati!g i gi%e! i! t"e
)o# o) 0bol( 3!,e t"e 0bol a#e ,lea#l0e-lai!e$( It i ea0 to u!$e#ta!$ a!$ ue t"e(
5( Ena$les 6ic% decisions; A! i!%eto# ,a! ta+e
ui,+ $e,iio! bae$ u-o! t"e #ati!g( T"e#e i !o!ee$ )o# "i to tu$0 o# +!o* t"e )u!$ae!tal o)t"e ,o-a!0(
11/27/15 1?
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
109/188
@( Inde"endent decision; t"e i!%eto# ,a! buil$"i o*! -o#t)olio *it"out t"e "el- o) t"e -o#t)olioa!age# b0 ,a#e)ull0 *at,"i!g u-g#a$e a!$$o*!g#a$e o) t"e ,#e$it #ati!g(
7( Ot&er services; T"e #ati!g age!,ie ,o!$u,t#eea#," tu$ie a!$ -#o%i$e i!$ut#0 #e-o#t.ei!a# a!$ o-e! to a!al0t o) t"e age!,ie)o# $i,uio!(
11/27/15 1?>
A14ANTAGES TO COM*ANB
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
110/188
+. Lo(ers t&e cost of $orro(in; T"e "ig"e# #ati!g)o# a)et0 -#o%i$e$ b0 t"e #ati!g age!,ie buil$ t"e
i!%eto#9 ,o!)i$e!,e i! t"e -a0e!t o) -#i!,i-ala!$ I!te#et(
T"e iui!g ,o-a!0 ,a! ,a-italie o! t"i b0lo*e#i!g t"e #ate o) i!te#et(
2( @idens investor $ase; T"e o-i!io! o) t"e #ati!gage!,0 buil$ u- i!%eto#9 ,o!)i$e!,e *"i," ,oul$e!able t"e iue# to #aie )u!$ e%e! i! a lu-e$a#+et(
T"e #ati!g itel) i ue$ a a! a$%e#tii!g tool to#aie )u!$ i! %a#iou e$ia(
11/27/15 11?
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
111/188
6( Indces self disci"line; Rati!g #eui#e t"e$i,lou#e o) a,,ou!ti!g 0te )i!a!,ial#e-o#ti!g a!$ a!agee!t -atte#! o$el8(
T"i $i,lou#e i-oe el)'$i,i-li!e o! t"e)u!,tio!i!g o) t"e ,o-a!0(
:( Motivates ro(t&; #ati!g gi%e a )eeli!g o),o!)i$e!,e a!$ e!,ou#age t"e e!t#e-#e!eu# to
u!$e#ta+e !e* -#oe,t a!$ e-a!$ t"e eiti!g-#oe,t(
11/27/15 111
RATING *ROCESSRATING *ROCESS
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
112/188
FACT FIN1INGS
ANALBSISRATING
STAGE
FINAL STAGE*RIMARB
STAGE
1( Rati!g#euet
2( Aig!i!g#ati!g tea 2ebe#8
1( Colle,tio! o)i!)o#atio!(
2( eeti!g &-la!t %iit
6(
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
113/188
• T"e ao# ,#e$it #ati!g age!,ie i! I!$ia a#e;
C#e$it Rati!g I!)o#atio! Se#%i,e o) I!$ia Lt$(CRISIL8
I!%ete!t a!$ C#e$it Rati!g Age!,0 o) I!$ia Lt$(ICRA8
C#e$it A!al0i a!$ Reea#," Lt$ CARE8
Du)) a!$
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
114/188
+. AAA LAAA CARE AAA Hi&est Safet/
2 AA LAA CARE AA Hi& safet/
7. A LA CARE A Ade6ate Safet/
8. ))) L))) CARE ))) Moderate safet/
9. )) L)) CARE )) Inade6ate safet/
:. ) L) CARE ) Ris% *roneLevel3
;. C LC CARE C S$stantial Ris%
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
115/188
+. FAAA MAAA CARE AAA Hi&est Safet/
2 FAA MAA CARE AA Hi& safet/
7. FA MA CARE A Ade6ate Safet/
8. F) M) CARE ))) Inade6ate safet/
9. ,, ,, CARE ))
:. ,, ,, CARE )
;. FC MC CARE C Ris% *roneLevel3
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
116/188
+. *+ A+ *R,+ Hi&est Safet/
2 *2 A2 *R,2 Hi& safet/
7. *7 A7 *R, 7 Ade6ate Safet/
8. *8 A8 *R,8 Ris% *roneLevel3
9. *9 A9 *R,9 1efalt
SHORT ter! de$t instr!ents inclde co!!ercial "a"ers onl/.
11/27/15 11@
I*O GRA1INGI*O GRA1ING
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
117/188
• T"e SEBI "a a$e I
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
118/188
g , ,
How did the capital market regulator react to one of the worst years for the
primary market? By scrapping mandatory IPO (initial public offerings)grading and making it oluntary! "hairman #$ %inha&s public speeches
are about restoring inestor confidence but he clearly does not know how
to do it' %o powerful companies and market intermediaries once again
used a depressed primary market to successfully lobby for a dilution of
inestor protection measures' IPO grading was adocated by inestoractiists and associations around **+ and was reluctantly mandated by
the %ecurities and ,-change Board of India (%,BI) in **. only to be
dropped si- years on'
•
11/27/15 11
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
119/188
• %,BI&s e-cuse for scrapping mandatory grading is the
reported findings of /arious studies& that a largenumber of inestors are /not influenced by grades&0
that plenty of low1grade IPOs receied a big response
from retail and institutional inestors and thirdly that
IPOs with high grades yielded more losses' In a clearcontradiction of these claims media reports also say
that %,BI&s action was /a moe to uplift the dormant
primary market&' It is also unclear how %,BI re2ected
yet another study which shows that oer time IPOswith higher grades yielded better price multiples'
11/27/15 11>
• Indian institutions hae scant regard for history so %,BI did
not bother to consult inestor associations who had fought
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
120/188
not bother to consult inestor associations who had fought
long and hard for IPO grading' 3or did it bother to e-amine
whether the grading process could be made more meaningfulor ade4uately publicised' 5hanks to pressure from powerful
corporate lobbies the IPO grading process was hobbled at the
ery inception' Inestor groups wanted IPO grading to be
independent and rating agencies to be paid from the large pool
of badly utilised inestor protectionfunds with stock
e-changes and the ministry of corporate affairs' 5his did not
happen' "ompanies were paying for their own rating6leading
to charges about shoddy ratings6especially when India&s top
rating agency "7I%I8 gae 7eliance Power a 91star grade atthe peak of the bull run of :anuary **;'
11/27/15 12?
• Howeer the grading did protect genuine inestors who
had no time or ability to wade through bulky
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
121/188
had no time or ability to wade through bulky
offer documents to find out what the companies wanted
to hide' 5he simple 91point grade based on an e-pertealuation of fundamentals by a rating agency at least
acted as a fact check een if it did not coer price risk'
By making it oluntary %,BI has effectiely killed IPOgrading' But instead of celebrating their ictory
companies and market intermediaries should be really
worried at the complete absence of protest' It shows that
the inestor simply doesn&t care and that is the real
reason why only three companies made a public
offering in *
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
122/188
CRISIL =oue. Ce!t#al A%e!ue
=i#a!a!$a!i Bui!e
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
123/188
:t" Floo#. 4o$#e Colieuoai0a =o-ital.Roa$ Be"i!$ E%
e#a#$ Naga# 3)) Eate#! E-#e=ig"*a0. Sio! E8
ubai :?? ?22
ebite; ***(,a#e#ati!g(,o
• )ric%(or% Ratins India *rivate Li!ited
6#$ Floo#. Ra Al+aa /6 & 62/2. ale!a Ag#a"a#a
Ba!!e#g"atta Roa$. Ba!galo#e 5@? ?7@
ebite; ***(b#i,+*o#+#ati!g(i!11/27/15 126
• Fitc& Ratins India *rivate Ltd. A-eea0 =oue @t" Floo#
http://www.careratings.com/http://www.brickworkratings.in/http://www.brickworkratings.in/http://www.careratings.com/
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
124/188
A-eea0 =oue. @t" Floo#
6 Di!"a* Va,""a Roa$.C"u#,"gate
ubai :?? ?2?
ebite; ***()it,"#ati!g(,o
• SME Ratin Aenc/ of India Ltd. SMERA3
U!it No( 1?2. 1&t Floo#. Sue# ebite; ***(e#a(i!
11/27/15 12:
http://www.fitchratings.com/http://www.smera.in/http://www.smera.in/http://www.fitchratings.com/
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
125/188
11/27/15 125
HIRE *URCHASE FINANCE
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
126/188
HIRE *URCHASE FINANCE
• =i#e -u#,"ae i a 0te o) a,ui#i!ggoo$ o! ,#e$it *"e#eb0 t"e elle# o) t"e
goo$ i #ega#$e$ a t"e dealer t"e-u#,"ae# i #ega#$e$ a t"e &irer a!$ t"e)i!a!,ie# a t"e o(ner (
11/27/15 12@
• U!$e# t"i t#a!a,tio!. t"e "i#e -u#,"ae# a,ui#et"e -#o-e#t0 goo$8 ie$iatel0 o! ig!i!g t"e
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
127/188
t"e -#o-e#t0 goo$8 ie$iatel0 o! ig!i!g t"e"i#e -u#,"ae ag#eee!t but t"e o*!e#"i- o# title
o) t"e ae i t#a!)e##e$ o!l0 *"e! t"e lati!talle!t i -ai$(
• T"e "i#e -u#,"ae 0te i #egulate$ b0 t"e =i#e
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
128/188
t"e#eo) to a -e#o! o! ,o!$itio! t"at u,"-e#o! -a0 t"e ag#ee$ aou!t i! -e#io$i,i!talle!t(
28 T"e -#o-e#t0 i! t"e goo$ i to -a tou," -e#o! o! t"e -a0e!t o) t"e lat o)u," i!talle!t. a!$
68 Su," -e#o! "a a #ig"t to te#i!ate t"eag#eee!t at a!0 tie be)o#e t"e -#o-e#t0o -ae(
11/27/15 12
=i " i l i $ t i
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
129/188
• =i#e'-u#,"ae i ,oo!l0 ,a##ie$ out i!
t"e )o# o) a t#ia!gula# t#a!a,tio!( T"e$eale#/elle#/%e!$o# ell t"e goo$ to t"e)i!a!,ie# uuall0 )i!a!,e o# ,#e$it,o-a!08. *"i," be,oe t"e o*!e#. i!#etu#! )o# a! ie$iate -a0e!t. *"i," it"e ,a" -#i,e le $e-oit -ai$ b0 t"ebu0e#/,o!ue#. +!o*! a t"e "i#e#( T"e
o*!e# t"e! "i#e t"e goo$ to t"e "i#e#u!$e# a "i#e'-u#,"ae ag#ee!t(
11/27/15 12>
Hire,*rc&ase Transaction
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
130/188
Hirer'
cons!er
1ealer'seller
O(ner'financier
1
11/27/15 16?
1( =i#e# -a0 $eale# $e-oit(
Hire,*rc&ase Transaction
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
131/188
2
Hirer'
cons!er
1ealer'seller
O(ner'financie
r
+
11/27/15 161
2( 3*!e# -a0 $eale# ,a" -#i,e le $e-oit
Hire,*rc&ase Transaction
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
132/188
2
Hirer'
cons!er
1ealer'seller
O(ner'financie
r
+
11/27/15 162
6( Deale# $eli%e# goo$ to 3*!e# 7
Hire,*rc&ase Transaction
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
133/188
2
Hirer'
cons!er
1ealer'seller
O(ner'financie
r
+
11/27/15 166
6(Deale# $eli%e# goo$ to3*!e# o# o*!e# $eli%e#
goo$ to =i#e#
7 7
Hire,*rc&ase Transaction
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
134/188
2
Hirer'
cons!er
1ealer'seller
O(ner'financie
r
+
11/27/15 16:
:( 3*!e# "i#e goo$ to "i#e#
u!$e# =< ag#eee!t
7 7
8
Hire,*rc&ase Transaction
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
135/188
2
Hirer'
cons!er
1ealer'seller
O(ner'financie
r
+
11/27/15 165
5( =i#e# -a0 i!talle!t too*!e# u!$e# =< ag#eee!t7 7
8
9
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
136/188
• =i#e -u#,"ae "oul$ be $iti!gui"e$
)#o i!talle!t ale *"e#ei! -#o-e#t0-ae to t"e -u#,"ae# *it" t"e-a0e!t o) t"e )i#t i!talle!t( But i!
,ae o) =< o*!e#"i- #eai! *it" t"eelle# u!til t"e lat i!talle!t i -ai$8bu0e# get o*!e#"i- a)te# -a0i!g t"elat i!talle!t( =< alo $i))e# )o#leai!g(
11/27/15 16@
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
137/188
• Di))e#e!,e bet*ee! leae )i!a!,i!g a!$ "i#e -u#,"ae
11/27/15 167
T0-e o) =i#e'
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
138/188
0-
T"e#e a#e t*o t0-e o) "i#e'-u#,"ae;
1(Co!ue# =i#e'
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
139/188
• T"i ,o%e# t"e )i!a!,i!g o) ,o!ue#goo$ -u#,"ae$ )o# -e#o!al. )ail0 a!$"oue"ol$ -u#-oe( T"e#e)o#e. t"e "i#e# i
a !atu#al -e#o! !ot bui!e8 a!$ t"egoo$ a#e obtai!e$ )o# !o!'bui!e-u#-oe(
11/27/15 16>
I!$ut#ial =i#e'
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
140/188
• I!$ut#ial "i#e'-u#,"ae #e)e# to goo$-u#,"ae$ b0 ,o-a!ie )o# ue i!bui!e o# i!$ut#0(
• Ea-le; T"e -u#,"ae o) a a,"i!e b0 a,o-a!0 to be ue$ i! bui!e(
11/27/15 1:?
Featu#e a!$ be!e)it
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
141/188
1( T"e ,o!ue# ,a! obtai! a aiu o)>? )i!a!,i!g(
2( T"e "i#e# be,oe t"e o*!e# o) t"e
goo$ o! ettlee!t o) t"e "i#e'-u#,"ae)a,ilit0(
6( T"e "i#e# ,a! o-t )o# ea#l0 )ull ettlee!t
11/27/15 1:1
:( T"e "i#e# ,a! te#i!ate t"e ag#eee!t b0
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
142/188
g 0#etu#!i!g t"e goo$ but "a to i!$e!i)0
t"e o*!e# o) a!0 $aage o# loei!,u##e$ i! $i-oi!g o) t"e aet(
11/27/15 1:2
A##a!gee!t t"at $i))e#e!t )i!a!,e ,o-a!ie"a%e *it" $eale#;
Hire,"rc&ase direct collection (it&ot
o"tion to t&e dealer3
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
143/188
" 3
11/27/15 1:6
T"i i a )a,ilit0 *"e#e t"e $eale# i!t#o$u,e t"e
bu0e# o) t"e %e"i,le to t"e )i!a!,ie#( "e! t"e)a,ilit0 i a--#o%e$. t"e "i#e# -a0 t"e o!t"l0i!talle!t to t"e )i!a!,ie#( I) t"e "i#e# $e)ault. t"e)i!a!,ie# *ill "a%e to #e-oe t"e %e"i,le(
Hirer' cons!er
1ealer'seller
O(ner'financier
Hire,"rc&ase direct collection (it&
c&oice to t&e dealer3
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
144/188
3• T"i i a )a,ilit0 *"e#e t"e $eale# i!t#o$u,e t"e bu0e# o) t"e
%e"i,le to t"e )i!a!,ie# a!$ gua#a!tee #e-a0e!t o) t"e)a,ilit0( "e! t"e )a,ilit0 i a--#o%e$. t"e "i#e# -a0 t"eo!t"l0 i!talle!t to t"e )i!a!,ie#( I) t"e "i#e# $e)ault. t"e)i!a!,ie# *ill ta+e a,tio! agai!t t"e "i#e# a!$ t"e $eale#(
11/27/15 1::
Hirer' cons!er
1ealer'seller
O(ner'financier
Hire,"rc&ase sc&edled collection
$/ t&e dealer3
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
145/188
/ 3• T"i i a )a,ilit0 *"e#e t"e $eale# i!t#o$u,e t"e bu0e#
o) t"e %e"i,le to t"e )i!a!,ie#( "e! t"e )a,ilit0 ia--#o%e$. t"e $eale# ,olle,t t"e o!t"l0 i!talle!to! be"al) o) t"e )i!a!,ie#( I) t"e "i#e# $e)ault. t"e$eale# "a to a+e t"e -a0e!t )o# t"e %e"i,le(
11/27/15 1:5
Hirer' cons!er
1ealer'seller
O(ner'financier
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
146/188
11/27/15 1:@
+. Frad
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
147/188
T"e $eale# a0. i! ,olluio! *it" t"eu--lie#. -#ee!t ue$ o# #e,o!$itio!e$eui-e!t )o# )i!a!,i!g i!tea$ o) !e*
eui-e!t( T"e o*!e# a0 o!l0 ,oe to+!o* about it a)te# #e-oeio! a!$ *ill"a%e $i))i,ult0 i! $i-oi!g o) it(
11/27/15 1:7
• T"e $eale# ig"t i!t#o$u,e )i,titiou"i#e# T"i ,a! "a--e! i! ,"e$ le$
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
148/188
"i#e#( T"i ,a! "a--e! i! ,"e$ule$
,olle,tio! a##a!gee!t( T"e $eale# ,a!,#eate a )i,titiou "i#e#9 !ae a!$ ubit)o#ge$ $o,ue!t to )i!a!,ie# T"e
)i!a!,ie# *ill -a0 t"e $eale# )o# !o!'eite!t goo$( T"e $eale# *ill ue t"e)u!$ )o# "i o*! -u#-oe a!$ $uti)ull0-a0 t"e o!t"l0 i!talle!t( T"e -#oble*ill u#)a,e *"e! t"e $eale# $e)ault o!-a0e!t(
11/27/15 1:
2 .Ot&er "ro$le!s• =i#e -u#,"ae )a,ilitie a#e ea!t -#ia#il0 )o#
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
149/188
• =i#e'-u#,"ae )a,ilitie a#e ea!t -#ia#il0 )o#
o%able goo$( 4oo$ a))ie$ to t"e g#ou!$La!$8 *oul$ -oe a -#oble( T"e Natio!alLa!$ Co$e $e)i!e la!$ to i!,lu$e all t"i!gatta,"e$ to t"e ea#t" o# -e#a!e!tl0 )ate!e$
to a!0t"i!g atta,"e$ to t"e ea#t" *"et"e# o!o# belo* t"e u#)a,e( T"e#e)o#e. a ,lai b0a!0 -a#t0 o! t"e la!$ *ill i!,lu$e t"e )itu#e
t"oug" )i!a!,e$ b0 a!ot"e# -a#t0( T"e#e)o#e. a$i,laie# )#o t"e la!$lo#$ o%e# t"e )itu#e!ee$ to be ta+e!(
11/27/15 1:>
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
150/188
• Stole! goo$ li+e a,"i!e#0 a#e $i))i,ult)o# t"e )i!a!,ie# to a,e#tai!( T"e )i!a!,ie#*ill alo loe it #ig"t o%e# t"e a,"i!e#0(
T"i a0 !ot "a--e! i! ,ae *"e#e t"e#ei a #egit#atio! bo$0. )o# ea-le. T"e"i#e# a0 !ot "a%e i!u#e$ t"e goo$(
11/27/15 15?
Re"ossession
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
151/188
• T"e )i!a!,ie# a0 o!l0 #e-oe t"egoo$ t"at i. ta+e -oeio! o) goo$e!tio!e$ i! a "i#e'-u#,"ae ag#eee!t
a#ii!g out o) a!0 b#ea," o) t"e ag#eee!t#elati!g to t"e -a0e!t o) i!tale!t.*"e#e.
11/27/15 151
• i8 T"e#e "a$ bee! t*o u,,ei%e$e)ault o) -a0e!t i! t"e ,ae o) $eat"
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
152/188
$e)ault o) -a0e!t i! t"e ,ae o) $eat"o) "ei#. : u,,ei%e $e)ault8 o# a $e)aulto) t"e lat -a0e!t a!$ t"e )i!a!,ie# "ae#%e$ o! "i#e# a Noti,e o) I!te!tio! toRe-oe a!$
• ii8 T"e -e#io$ )ie$ b0 t"e Noti,e o)I!te!tio! to Re-oe "a e-i#e$. *"i,""all !ot be le t"a! 21 $a0 a)te# t"ee#%i,e o) t"e !oti,e(
11/27/15 152
*rocedres involved drin
t&e re"ossession
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
153/188
t&e re"ossession
• T"e =i#e'
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
154/188
#e-oe t"e goo$. t"e! t"e age!t "a
to "o* t"e "i#e# a! aut"o#it0 ,a#$ iue$b0 t"e )i!a!,ie# a!$ "i i$e!tit0 ,a#$(
• iii8 A! aut"o#it0 ,a#$ ut bea# t"e-"otog#a-". !ae a!$ a$$#e o) t"eage!t. t"e !ae a!$ a$$#e o) t"e)i!a!,ie#. t"e !atu#e o) a--oi!te!t o)age!t a!$ t"e ig!atu#e o) t"e aut"o#ie$-e#o! o) t"e )i!a!,ie#(
11/27/15 15:
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
155/188
i%8 T"e )i!a!,ie#9 o))i,e# o# age!t alo"a to "o* t"e "i#e# o# t"e o,,u-a!t o)t"e "i#e#9 -#eie. "i i$e!tit0 ,a#$
be)o#e #e-oei!g t"e goo$(
11/27/15 155
*rocedres after t&e oods
&as $een re"ossessed
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
156/188
&as $een re"ossessed
• "e#e t"e )i!a!,ie# ta+e -oeio! o)t"e goo$ t"at *e#e ,o-#ie$ i! a "i#e'
-u#,"ae ag#eee!t. t"e )i!a!,ie# ut$eli%e# to t"e "i#e# -e#o!all0 a $o,ue!t.*"i," "all et out
11/27/15 15@
i8 A "o#t $e,#i-tio! o) t"e goo$ a!$
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
157/188
i8 A "o#t $e,#i-tio! o) t"e goo$ a!$
ii8 T"e $ate o! *"i," t"e )i!a!,ie# too+-oeio! o) t"e goo$
iii8T"e tie at *"i," t"e )i!a!,ie# too+
-oeio! o) t"e goo$i%8T"e -la,e *"e#e t"e )i!a!,ie# too+
-oeio! o) t"e goo$
%8 T"e a,+!o*le$ge!t o) #e,ei-t o) t"egoo$(
11/27/15 157
%i8 "e#e t"e "i#e# i !ot -#ee!t at t"etie o) #e-oeio!. t"e )i!a!,ie# ut
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
158/188
e!$ u," $o,ue!t to t"e "i#e#ie$iatel0 a)te# ta+i!g -oeio! o) t"egoo$(
%ii8 it"i! 21 $a0 a)te# t"e )i!a!,ie# "a
ta+e! -oeio! o) goo$. t"e )i!a!,ie#ut e#%e o! t"e "i#e# a!$ e%e#0gua#a!to# o) t"e "i#e# a Noti,e to =i#e#
u!$e# Se,tio! 1@(
11/27/15 15
%iii8 I) t"e !oti,e i !ot e#%e$. t"e #ig"t o)t"e )i!a!,ie# u!$e# t"e "i#e'-u#,"ae
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
159/188
t"e )i!a!,ie# u!$e# t"e "i#e'-u#,"ae
ag#eee!t *ill t"e#eu-o! ,eae(
i8 =o*e%e#. i) t"e "i#e# ee#,ie "i o# "e#
#ig"t u!$e# t"e "i#e'-u#,"ae ag#eee!tto #e,o%e# t"e goo$ ta+e! -oeio! b0t"e )i!a!,ie#. t"e !oti,e i $eee$ to "a%e
bee! $ul0 e#%e$ o! t"e "i#e#(
11/27/15 15>
8 Cot i!%ol%e$ i! t"e #e-oeio! *ill be bo#!e
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
160/188
b0 t"e "i#e#;
18T"e ,ot o) #e-oeio! a!$
28T"e ,ot i!,i$e!tal o) ta+i!g -oeio!a!$ t"e ,ot o) to#age(
11/27/15 1@?
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
161/188
11/27/15 1@1
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
162/188
• I! i-le *o#$. Leae i a )i!a!,ial,o!t#a,t bet*ee! t"e bui!e ,utoe#ue#8 a!$ t"e eui-e!t u--lie#
!o#all0 o*!e#8 )o# ui!g a -a#ti,ula#aet/eui-e!t o%e# a -e#io$ o) tieagai!t t"e -e#io$i, -a0e!t ,alle$KLeae #e!tal(
11/27/15 1@2
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
163/188
• Leae ge!e#all0 i!%ol%e t*o -a#tie i(e(t"e leo# o*!e#8 a!$ t"e leee ue#8(
• U!$e# t"i a##a!gee!t. t"e leo#
t#a!)e# t"e #ig"t to ue to t"e leee i!#etu#! o) t"e leae #e!tal ag#ee$ u-o!(
• Leae ag#eee!t ,a! be a$e )leible
e!oug" to eet t"e )i!a!,ial #eui#ee!to) bot" t"e -a#tie(
11/27/15 1@6
E5AM*LE OF CAR LEASE
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
164/188
11/27/15 1@:
LESSORLESSEE
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
165/188
11/27/15 1@5
1ifference $et(een
Lease and Hire *rc&ase#
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
166/188
• O(ners&i" of t&e Asset# I! leae. o*!e#"i-lie *it" t"e leo#( T"e leee "a t"e #ig"t toue t"e eui-e!t a!$ $oe !ot "a%e a!o-tio! to -u#,"ae(
• "e#ea i! "i#e -u#,"ae. t"e "i#e# "a t"e
o-tio! to -u#,"ae( T"e "i#e# be,oe t"eo*!e# o) t"e aet/eui-e!t ie$iatel0a)te# t"e lat i!talle!t i -ai$(
11/27/15 1@@
• 1e"reciation# I! leae )i!a!,i!g. t"e$e-#e,iatio! i ,laie$ a a! e-e!e i! t"eb + ) l
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
167/188
boo+ o) leo#(
• 3! t"e ot"e# "a!$. t"e $e-#e,iatio! ,lai iallo*e$ to t"e "i#e# i! ,ae o) "i#e -u#,"aet#a!a,tio!(
• Rental *a/!ents# T"e leae #e!tal ,o%e# t"e,ot o) ui!g a! aet( No#all0. it i $e#i%e$*it" t"e ,ot o) a! aet o%e# t"e aet li)e(
• I! ,ae o) "i#e -u#,"ae. i!talle!t i i!,lui%e
o) t"e -#i!,i-al aou!t a!$ t"e i!te#et )o# t"etie -e#io$ t"e aet i utilie$(
11/27/15 1@7
• 1ration# 4e!e#all0 leae ag#eee!t a#e$o!e )o# lo!ge# $u#atio! a!$ )o# bigge#
t li+ l $ t t
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
168/188
aet li+e la!$. -#o-e#t0 et,(
• =i#e
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
169/188
#e-o!ibilit0 o) t"e leee but. i! o-e#ati!g leae.
it i t"e #e-o!ibilit0 o) t"e leo#(
• I! "i#e -u#,"ae. t"e #e-o!ibilit0 lie *it" t"e"i#e#(
• E-tent of Finance# Leae )i!a!,i!g ,a! be ,alle$t"e ,o-lete )i!a!,i!g o-tio! i! *"i," !o $o*!-a0e!t a#e #eui#e$ but i! ,ae o) "i#e-u#,"ae. t"e !o#all0 1? to 25 a#gi! o!e0
i #eui#e$ to be -ai$ u-)#o!t b0 t"e "i#e#(T"e#e)o#e. *e ,all it a -a#tial )i!a!,e li+e loa! et,(
11/27/15 1@>
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
170/188
11/27/15 17?
• It ,a! be $e)i!e$ a Ko!e0. goo$ o# e#%i,e-#o%i$e$ to a! i!$i%i$ual i! lieu o) -a0e!t
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
171/188
• Co!ue# C#e$it i!,lu$e all aet'bae$)i!a!,i!g -la! o))e#e$ to -#ia#il0 i!$i%i$ual toa,ui#e $u#able ,o!ue# goo$(
• T0-i,all0. i! a ,o!ue# ,#e$it t#a!a,tio!. t"ei!$i%i$ual',o!ue#'bu0e# -a0 a )#a,tio! o) t"e,a" -u#,"ae -#i,e at t"e tie o) t"e $eli%e#0 o)t"e aet a!$ -a0 t"e bala!,e *it" i!te#et o%e#a -e,i)ie$ -e#io$ o) tie(
11/27/15 171
• F#o a o$et begi!!i!g i! t"e ea#l0 eig"tie. t"e,o!ue# ,#e$it "a ee#ge$ a a! i-o#ta!taet'bae$ )i!a!,ial e#%i,e i! I!$ia
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
172/188
aet bae$ )i!a!,ial e#%i,e i! I!$ia(
• T"e ai! u--lie# o) ,o!ue# ,#e$it a#e)o#eig!/ulti'!atio!al ba!+. ,oe#,ial ba!+a!$ )i!a!,e ,o-a!ie a!$ ,o%e# ite u," a
CARS. SC33TERS. VCR. VC
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
173/188
1(
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
174/188
11/27/15 17:
• T"e -a#tie to a ,o!ue# ,#e$itt#a!a,tio! $e-e!$ u-o! t"e !atu#e o) t"et ti
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
175/188
t#a!a,tio!(
• I! )i#t ,atego#0. t"e#e a#e t*o -a#tie.!ael0 bo##o*e#',o!ue#',utoe# a!$$eale#',u')i!a!,ie#(
• I! e,o!$ ,atego#0. *"e#e t"e -a#tie a#e$eale#. )i!a!,ie# a!$ t"e ,utoe#
11/27/15 175
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
176/188
11/27/15 17@
• Hire,*rc&ase; T"e ,utoe# "a t"e o-tio! to-u#,"ae t"e aet( But "e a0 !ot ee#,ie t"e
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
177/188
o-tio! a!$ #etu#! t"e goo$ a,,o#$i!g to t"e te#o) t"e ag#eee!t(
• Conditional Sale; T"e o*!e#"i- i !ott#a!)e##e$ to t"e ,utoe# u!til t"e total -u#,"ae
-#i,e i!,lu$i!g t"e ,#e$it ,"a#ge i -ai$( T"e,utoe# ,a!!ot te#i!ate t"e ag#eee!t be)o#et"e -a0e!t o) t"e )ull -#i,e(
• Credit Sale; t"e o*!e#"i- i t#a!)e##e$ to t"e
,utoe# o! -a0e!t o) t"e )i#t i!talle!t( =e,a!!ot ,a!,el t"e ag#eee!t(
11/27/15 177
3DE 3F
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
178/188
F#o t"e -oi!t o) %ie* o) -a0e!t. t"e ,o!ue#
,#e$it a##a!gee!t )all i!to t*o g#ou-(
1( Do*!
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
179/188
• A *i$e #a!ge o) o-tio! a#e a%ailable(T0-i,all0. t"e #e-a0e!t -e#io$ #a!gebet*ee! 12'@? o!t"l0 i!talle!t( T"e#ate o) i!te#et i !o#all0 e-#ee$ at )lat#ate. t"e e))e,ti%e #ate o) i!te#et i ge!e#all0!ot $i,loe$(
11/27/15 17>
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
180/188
• I! oe ,"ee. t"e #ate o) i!te#et i !ot$i,loe$. i!tea$ t"e EI ao,iate$ *it"t"e $i))e#e!t #e-a0e!t -e#io$ i e!tio!e$(
• ot o) t"e ,"ee -#o%i$e )o# ea0#e-a0e!t( T"e0 alo -#o%i$e )o# eit"e# a#ebate )o# -#o-t -a0e!t a!$ ,"a#ge )o#$ela0e$ -a0e!t(
11/27/15 1?
e,u#it0
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
181/188
• Se,u#it0 i ge!e#all0 i! t"e )o# o) a )i#t,"a#ge o! t"e aet( T"e ,o!ue#
,a!!ot ell/-le$ge/"0-ot"e,ate t"e aet(
11/27/15 11
Dea!$ )o# ,o!ue#)i!a!,eFa,to#8
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
182/188
• I!,#eae i! ,o!ue# $i-oable i!,oe• E!"a!,ee!t i! #eal i!,oe o) ,o!ue#
• Co!%e!ie!t ie o) i!talle!t -a0e!t
• 4#o*t" i! !u,lea# )ailie lea$i!g to!ube# o) "oue "ol$
• Lo*e# ,"a#ge
• Do*! -a0e!t a!$ ,#e$it ,o!t#a,t
A$%a!tage o) Co!ue#C#e$itFi!a!,e8
E i iti A i t t b )it )
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
183/188
• E!o0i!g -oitio! ; A! i-o#ta!t be!e)it o) ,o!ue#
,#e$it i t"at it allo* -eo-le to e!o0 -oeio! o)goo$ *it"out "a%i!g to -a0 )o# t"e ie$iatel0(
• Sa%i!g ; ,o!ue# ,#e$it allo* )o# a e,"a!i o),o-ulo#0 a%i!g t"i i!$u,e -eo-le to ue t"ei#
i!,oe *iel0 a!$ -#oote t"#i)t ao!g -eo-le(• Co!%e!ie!t o$e ; Co!ue# ,#e$it o))e# a ,o!%e!ie!t
o$e o) a,ui#i!g ,o!ue# $u#able(
• eeti!g ee#ge!,0 ; Co!ue# ,#e$it i ue)ul i!
eeti!g ee#ge!,ie u," a ill!e. a,,i$e!t a!$$eat" *"i," i!%ol%e u!e-e,te$ e-e!e(
• aiiatio! o) #e%e!ue; Co!ue# ,#e$it)a,ilitate -ee$0 $i-oal o) goo$ *"i," *oul$"a%e #eai!e$ u!ol$ i! t"e abe!,e o) ,#e$it
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
184/188
)a,ilit0 to ,o!ue#( T"i "el- i! i!,#eae$ alea!$ -#o)it t"#oug" ,#e$it ale(
• A,,ele#ate i!$ut#ial i!%ete!t; Co!ue# ,#e$it
a,,ele#ate i!%ete!t i! ,o!ue# $u#ablei!$ut#0 gi%i!g #ie to g#o*i!g le%el o) i!,oe a!$e-lo0e!t(
• E!"a!,e$ li%i!g ta!$a#$ ; ,o!ue# ,#e$ite!able -eo-le o) liite$ ea! to a,ui#e goo$to e!"a!,e t"ei# ge!e#al ta!$a#$ o) li%i!g(
•
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
185/188
Co!ue# ,#e$it -#oote "ig"e# le%el o)i!%ete!t. e-lo0e!t a!$ i!,oe t"u#aii!g t"e e))e,ti%e $ea!$ a!$ -#ooti!g"ig"e# ta!$a#$ o) g#o*t" a!$$e%elo-e!t(
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
186/188
• Ri+ to t#a$e# ; Co!ue# C#e$it -oe,o!i$e#able #i+ to t#a$e# be,aue i) t"e bu0e#$e)ault o! -a0e!t t"e le!$e# ,a! a,ui#e t"e
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
187/188
- 0
goo$ but ,a!!ot ell it at t"e o#igi!al -#i,e(• A#ti)i,ial Boo; Co!ue# ,#e$it ,#eate a#ti)i,ial
boo i! ,o!ue# $u#able i!$ut#0(
• Ba$ Debt ; Co!ue# ,#e$it ge!e#ate a ubta!tial
aou!t o) #e%e!ue )o# t#a$e# but t"e#e i a "ig"#i+ o) ba$ $ebt(
• E,o!oi, i!tabilit0; I!$i,#ii!ate ,o!ue# ,#e$itlea$ to e,o!oi, i!tabilit0 be,aue o) #e,u##e!,eo) boo a!$ lu-( I! boo t"e#e i ,#e$itete!io! a!$ i! #e,eio! t"e#e i ,#e$it tig"te!i!g(
-
8/15/2019 4 Unit Asset & Fund Based Financial Services
188/188
T=AN Q3U ((