To start a new business, expand an existing business or to make up for a short fall in operating capital, a project finance or business loan may be required in all of these circumstances.
For running an industry or a Concern, two types of capital are required viz., fixed capital (long term fund i.e equity, Term Loan, Debenture etc.) and working capital. Fixed Capital is utilized for acquiring the fixed assets such as land, building, plant & machinery, etc., and to meet capital expenditure connected with the setting to keep the wheels moving up of the industry or Concern.