Limitation Of Bank Loan Essay

1943 Words8 Pages
Summary: In any society, businesses have always been looking for ways to fund the required material and resources needed to operate. They are always searching for easier and faster ways to get credit and are getting even more demanding to finding exactly what meets their needs. Furthermore, due to the rapid technical progress, the product renewal and obsolescence of equipment and working facilities are particularly accelerated. In developing countries, SMES are the backbone of all economies and their main focus is on financing and on economic growth. However, businesses suffer from various constraints in accessing credit and several financial constraints. The main source of funding classically is bank credit, which requires a guarantee in consideration to the sum that the lender wants to borrow. The latter usually exceeds the financial capacity of the businessman and does not allow him to get the credit he wants. Based on that, companies are searching for new ways to meet their needs. This thesis is a study of one of the other options available to obtain the required assets that is leasing. Leasing is the purchase of the right to use an asset for a period of time without actually owning the asset.It is a contract between two parties: the lessee and the lessor. The lessee is…show more content…
NPER (Required): The total number of payments for the loan. PV (Required): The present value (the total amount that a series of future payments is worth now); also known as the principal. FV (Optional): The future value(a cash balance you want to attain after the last payment is made). If FV is omitted, it is considered to be 0 (zero), that is, the future value of a loan is 0.Type (Optional): it can be 0 (zero) or 1 and indicates when payments are due.If it’s equal to 0 or is omitted then payments are due at the end of the period and if it’s 1 then payments are due at the beginning of the
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