Unsecured Loan

• Start-Up India Loan: Start-Up India scheme facilitates bank loan between 10 lacs to 1 crore to at least one schedule cast or schedule tribe and at least one women borrower should be there.
• Pradhan Mantri MUDRA Yojana (PMMY): The Government of India has launched PMMY with the aim to make credit available to SMEs from the non-agricultural sector. PMMY enables entrepreneurs to avail credit under three distinct schemes – Sishu, Kishore and Tarun. An entrepreneur can avail credit up to Rs 50000 under Sishu scheme, up to Rs 500000 under Kishore scheme, and up to Rs 1000000 under the Tarun scheme. Each category of MUDRA loan is unsecured and collateral-free. Also, the borrower can use the loan proceeds to both launch new business ventures and fund working capital needs.
• CGTMSE: CGTMSE provides a guarantee to lending institutions up to a certain limit for all lending done by them to the medium, small, and micro sectors. This initiative allows banks and other lending institutions to provide funds to first generation entrepreneurs without the need for security or third-party guarantees. 
• Business Loan: An unsecured business loan is a funding solution which requires no personal or business asset as collateral. However, these loans require the borrower to show the lender a good credit rating, with excellent financial history and cash flow forecast. 

 Government Scheme

• Prime Minister Rozgar Yojana: It was launched 2^nd October 1993 with an objective of creating one million jobs in 5 years by giving loans for the creation of tiny and micro enterprises.

• Assistance to SME Exports: SME’s are helped in participating in the trade exhibitions. The Govt. would meet expenses in these regards on space rent, handling and clearing charges, insurance and shipment charges etc. Capital goods zero duty scheme is extended without any conditions. Marketing development assistance is given to facilitate market research and publicity.

• Trade Related Entrepreneurship Assistance and Development for Women: TREAD is a scheme for giving trade-related assistance to women entrepreneurs in the form of a loan, grants, trade-related training and information, counselling and extension services.

• Preferential Government Purchase: In this scheme, the government has to compulsorily purchase some required material from the registered SME’s.

       (Source: edurev.in)

Fixed Cash Flow

• Positive cash flow:  Positive cash flow this occurs when the cash entering into your business from sales, accounts receivable, etc. is more than the amount of the cash leaving your businesses through accounts payable, monthly expenses, employee salaries, etc.
• Negative cash flow: This occurs when your outflow of cash is greater than your incoming cash. This generally means trouble for a business, but there are steps you can take to fix the negative cash flow problem and get into positive zone.

Variable Cash Flow

Long Term and Short Term Cash Flow

• Long Term Cash Flow: Long-term cash flow is usually needed for acquiring new equipment, R&D, cash flow enhancement, and company expansion.
• Short Term Cash Flow: Short-term cash flow with a time duration of up to one year is used to help corporations increase inventory orders, payrolls, and daily supplies.

Tax Planning

• Liquid Funds: Your gains from long term investment in Liquid mutual funds is taxable @ 20% with indexation and 10% without indexation. This means if you are in the tax bracket of 30% the liquid fund is taxable @20%.
• Balanced Fund: Balanced invest at least 65% of their portfolio in equity and equity-oriented instruments. This allows them to qualify as equity funds for the purpose of taxation. It means that gains over and above Rs 1 lakh from balanced funds held for a period of over 1 year are taxable at the rate of 10%.
• Tax-Free Bonds: The Indian government-backed companies issue these tax-free bonds with a reasonable interest rate. These bonds are of long-term maturity, and the proceeds are usually invested in infrastructure projects. The income that you earn in tax-free bonds in the form of interests is fully exempted from income-tax.

Protection Planning

• Fire Insurance: It protects from Fire, Light explosion and implosion, Riot Strike and malicious damage, storm, cyclone, typhoon, tempest hurricane, tornado, flood and inundation, bush fire etc.
• Business Interruption Insurance: When a property used for a business is damaged by an insured peril, the regular business activities are interrupted causing a serious financial loss in terms of “Loss of Profit” which is not covered by a regular Fire policy.
• Credit Insurance: Credit Insurance protects companies against customer defaults. It covers the sales of the companies to its buyers on credit against the risk of loss due to the insolvency of their customers. It can be of great help in the growth of sales by allowing the secure development of new buyers, new markets and the credit extended to a buyer.
• Transit Insurance: Transit Insurance offers coverage to all types of cargo against risks associated with fire, collision, lightening etc. It covers loss or damage to the freight during international transit via air or sea. It covers riots, strikes, war and civil commotion.

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