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Showing posts from July, 2017

Financing and Lending: Two important pillars of Investment Banks in Asset Reconstruction Company

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Financing and Lending are very common commercial terms. But to a layman, its meanings can be hard to differentiate. Everyone associates Financing and Lending activities with Loan against Shares , Loan against Securities and Loan against Mutual Funds for an Asset Reconstruction Company . However there is a mere difference between the two. Financing refers to a Non Banking Financial Company or an Investment Bank often taking part in the growth of a company, firm or individual business. It is often needed by a business firm to take external financial help to run their business due to shortage of capitals. Financing helps in that. In return the Asset reconstruction company may have benefits like using the particular goods and services of the company free of cost. Financing gives a two way benefit Lending however, means taking loans and advances from financial companies or share holder, or individuals. It means lending an amount of money against some capital or asset at a