Tag: up

Start up business ideas #small #business #bureau

#business ideas

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You need to have a viable business idea. You must also have what it takes to make it work. You also must have enough money.

If you’ve got what it takes to start your own business, and you’ve done your research, forming a business is the next exciting leg on the journey.

Many people struggle with the financial side of managing their small business. Not everyone has a head for figures or wants to become an accountant.

If you want to run a legitimate enterprise, you must pay tax. It’s worth understanding your tax obligations before you start up to factor them in.

Many people, including some leading business representatives, argue that small firms are over burdened by the weight of business law.

It might be a cliché, but it remains true – planning without action is futile, while action without planning is fatal. You need a business plan.

Marketing matters. Marketing drives sales for businesses of all sizes by ensuring that customers think of their brand when they want to buy.

Premises provide the second-biggest overhead for many businesses. If you can start your business from your home, it will be much easier to break even.

The success or failure of a business can often rest in the hands of its most valuable asset – its people. But managing them can be a challenge.

There can’t be many firms in the UK, however small, that don’t use IT in some way. Many businesses simply couldn’t exist without IT.

Half of all new businesses fail within five years. So how do you survive and thrive? Find out how to scale up and become a high-growth business.

Start up business ideas





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How to Come Up With an Idea for a Business #starting #a #new #business

#start up business

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How to Come Up With an Idea for a Business

In their book, Start Your Own Business , the staff of Entrepreneur Media, Inc. guides you through the critical steps to starting a business, then supports you in surviving the first three years as a business owner. In this edited excerpt, the authors offer suggestions for figuring out just what kind of business you d like to start.

How do you start the business idea process? First, take out a sheet of paper, and across the top, write Things About Me. List five to seven things about you things you like to do or that you re really good at, personal things (we ll get to your work life in a minute). Your list might include: I m really good with people, I love kids, I love to read, I love computers, I love numbers, I m a problem solver. Just write down whatever comes to your mind; it doesn t need to make sense.

On the other side of the paper, list things you don t think you re good at or you don t like to do. Maybe you don t like to meet new people or you re really not that fond of kids or you don t like public speaking or you don t want to travel. Don t overthink it.

When you re finished, ask yourself: If there were three to five products or services that would make my personal life better, what would they be? Determine what products or services would make your life easier or happier, make you more productive or efficient, or simply give you more time.

Next, ask yourself the same set of questions about your business life. Also examine what you like and dislike about your work life as well as what traits people like and dislike about you.

Finally, ask yourself why you re seeking to start a business in the first place. Then, when you re done, look for a pattern (i.e. whether there s a need for a business doing one of the things you like or are good at).

Inspiring moments

Inspiration can be found anywhere. Getting an idea can be as simple as keeping your eyes peeled for the latest hot businesses; they crop up all the time. Many local entrepreneurs made tons of money bringing the Starbucks coffeehouse concept to their hometowns and then expanding from there. Take Minneapolis-based Caribou Coffee. The founders had what they describe as an aha moment in 1990 and, two years later, launched what is now the nation s second-largest corporate-owned gourmet coffeehouse chain. Other coffee entrepreneurs have chosen to stay local.

And don t overlook the tried and true. Hot businesses often go through cycles. Take gardening. For the past few years, gardening products and supplies have been all the rage, but you wouldn t consider gardening a 21st century business. The same goes for shoe cobblers and seamstress businesses with people wanting shoes and clothes to last longer or fit just-so, these businesses are in demand, and supply is short.

In other words, you can take any idea and customize it to the times and your community. Add your own creativity to any concept. In fact, customizing a concept isn t a choice; it s a necessity if you want your business to be successful. You can t just take an idea, plop it down and say, OK, this is it. Outside of a McDonald s, Subway or other major franchise concept, there are very few businesses that work with a one-size-fits-all approach.

One of the best ways to determine whether your idea will succeed in your community is to talk to people you know. If it s a business idea, talk to co-workers and colleagues. Run personal ideas by your family or neighbors. Don t be afraid of people stealing your idea. It s just not likely. Just discuss the general concept; you don t need to spill all the details.

Hopefully by now, the process of determining what business is right for you has at least been somewhat demystified. Understand that business startup isn t rocket science. No, it isn t easy to begin a business, but it s not as complicated or as scary as many people think, either. It s a step-by-step, common-sense procedure. So take it a step at a time. First step: Figure out what you want to do. Once you have the idea, talk to people to find out what they think. Ask, Would you buy and/or use this, and how much would you pay?

Determining what you want to do is only the first step. You ve still got a lot of homework to do, a lot of research in front of you. Most important: Do something. Don t sit back year after year and say, This is the year I m going to start my business. Make this the year you really do it!





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Same-Day Franchise Financing Up To $250K #good #business #names

#franchise loans

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Franchise Financing

Looking for an easier way to get financing for your franchise? You ve come to the right place. Balboa Capital is a leading direct lender that specializes in franchise financing. We can structure and deliver a flexible, affordable solution that works within your budget. We make the entire process quick and efficient, and you will work with a single point-of-contact every step of the way. If you are purchasing new furniture, fixtures and equipment (FF E), starting the re-imaging process, or launching a property improvement program (PIP), we can help.

  • Financing Plans Up to $1 Million Per Owner/Operator
  • Franchise Working Capital Loans up to $1 Million
  • Credit Lines up to $500,000
  • Up to 70%/30% Soft Cost/Hard Cost Financing
  • 24-60 Month Terms
  • Up to 84-Month Terms for Acquisition Financing and Remodels
  • Easy Application Process
  • Competitive Rates
  • Fast Funding
  • Possible Tax Deduction Ask Your Accountant




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RBI opens up bond market #business #administration

#bond market news

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RBI opens up bond market

The Reserve Bank of India (RBI) on Thursday announced a comprehensive set of measures to change India s lacklustre bond market and provide a push to the currency market as well, completing the agenda of Raghuram Rajan, the outgoing governor of the central bank.

The RBI proposed to allow banks to raise capital through masala (rupee) bonds in the overseas market and liberalised the currency market by allowing customers residents and non-residents to maintain big open positions.

Among a series of blockbuster measures, the RBI also proposed to allow listed companies to lend money to banks through repo market mechanism, essentially overnight money, something that can have wide ranging ramifications for call money rates, short-term money market rates as well as the banking system liquidity.

The central bank also proposed allowing listed companies to lend longer tenure money to banks through the repo market mechanism. This will have an impact on interest rates, the bond market, and liquidity in the banking system.

The RBI said it would also seek legal amendments to allow banks to borrow from it by pledging corporate bonds. This should raise demand for rated corporate paper and make secondary trade possible. Currently, 95 per cent of corporate bonds are privately placed.

The proposal to allow foreign portfolio investors direct access to bond trading platforms for government and corporate paper will widen the investor base. The central bank has also proposed that banks nudge corporate clients to borrow from the bond market. Final guidelines on most of today s proposals will be issued after Rajan s departure, but some measures come into effect immediately. For example, the steps taken in the currency market essentially opened up India s closely-guarded currency market, perhaps bringing an element of speculation in the exchange rate. The Reserve Bank will now permit entities exposed to exchange rate risk, whether resident or non-resident, to undertake hedge transactions with simplified procedures, up to a limit of $30 million at any given time. The exposed person will be free to access any market (over the counter or exchange) and use any of the permissible products, the RBI said in its statement on its website.

In addition, banks might, based on their assessment of the risk management capabilities of a customer, allow an open position limit of up to $5 million, the RBI said. The currency market move was intended to improve liquidity and depth, the RBI said, adding the limit would be revised according to experience. Guidelines on this will be issued by November. Another critical change is allowing companies to lend money to banks through a market repo mechanism. So far, listed companies could only lend a maximum of 7-day money, taking government securities as mortgage, also known as repo. The RBI said this constrains their participation . It is proposed to allow such companies to lend through the repo market, without any tenor or counterparty restrictions. Guidelines based on a comprehensive review of regulations on market repo in G-secs are being issued today, it added.

Analysts hailed the measures taken by RBI. These are all critical reforms from short-to-long term perspective. Opening up of global markets for AT1 and Tier-II bonds in negative rate condition prevailing globally will be beneficial for banks, said Soumyajit Niyogi, associate director, India Ratings and Research. Listed corporates are encouraged to park short-term surplus fund through repo in G-Sec. FPI s and Individual s direct presence in bond markets and inclusion of corporate bond in LAF window will strengthen market activities, Niyogi said. Gaurav Pradhan, co-head of investment banking & capital markets for Credit Suisse in India said RBI s proactive steps acknowledged the potential of the masala bond market. Further issuance from banks will help broaden and deepen the market for masala bonds, making the product more sustainable in the long run as a financing option. From a macro perspective, we expect the RBI s move will help banks to better manage their balance sheets and lower their cost of funds, and should have a positive impact on local interest rates, Pradhan said.

Karthik Srinivasan, co-head, financial sector ratings, ICRA said RBI measures will encourage greater participation from issuers, investors and intermediaries while the permission to banks to raise masala bonds can develop the overseas market for rupee denominated bonds.

Many of the measures for the corporate bond market were built on recommendations in a report by the HR Khan committee released a week ago by the Securities and Exchange Board of India. These measures are intended to further market development, enhance participation, facilitate greater market liquidity and improve communication, the central bank said.

The RBI also decided to enhance the aggregate limit of partial credit enhancement provided by banks to corporate bonds to 50 per cent of the bond issue size from 20 per cent earlier, provided a single bank restricted its enhancement to 20 per cent of the issue size. It also proposed to permit brokers in corporate bond repos, authorise the platform for repo in corporate bonds, and encourage credit supply for large borrowers through the market mechanism. To further encourage the overseas rupee bond market, banks are being permitted to issue rupee bonds overseas (masala bonds) for their capital requirements and for financing infrastructure and affordable housing, the central bank said.

The bonds should be perpetual debt instruments used to shore up additional Tier 1 and Tier II capital of banks. Masala bonds to be issued for financing infrastructure and affordable housing can be of the nature of any long-term debt. The central bank said it had worked out a market making scheme in government securities by primary dealers (underwriters of government bonds) in consultation with the government which might help in increasing the liquidity of semi-liquid securities. The central bank will soon comprehensively review the framework for hedging of commodity price risks in the overseas markets by Indian companies.





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Start Up Business Loans: The 9 Best Options #business #training

#start up business loans

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Start Up Business Loans: The 9 Best Options

Thanks for clarifying. With a deal like this, conventional lenders (like Bank of America, etc.) may be your best option. Who is willing to finance the deal and how the financing is ultimately structured will depend on the specifics of the deal. The financial health of the businesses you re looking to acquire as well as your own personal financial health will be critical. Sometimes banks will finance a portion of a deal with an SBA loan (the 7a is capped at $5m) and the rest with a traditional bank loan.

This article is well organized and informative. I will look into one of these options very soon. I am starting a business in a couple of months but I have no money to put into the business. I have a 690 credit score and own a home with hardly any equity. I need money for the equipment, franchise fee, and working capital. I have a business plan done but have not made a move yet. Any guidance?

Thanks reaching out.

In most cases, lenders will require you put up a down payment of 10-20% for a startup business loan. Typically, lenders do not want that down payment to come from additional borrowing (like from a personal loan or credit card cash advance). If you don t have any cash savings, this might mean finding an investor/partner. Or, if you have over $50k in a retirement account, you could use those funds for the business/down payment (without paying early withdrawal taxes and penalties) by setting up a rollover for business startups (ROBS). Read more about those here or speak with a ROBS pro at Guidant .

I hope that is helpful. Check in with us as things progress. We d love to get updates.

I want to start an arts and crafts supply store in my area. There are none in the city that I live in. I am a new entrepreneur and I am still learning the process. I am also a veteran, minority female are there loans available for me?

Thanks for your question. There are certain small business loan programs available to women. minorities. and veterans. Check out those articles for more details.

Keep in mind, as with any loan program, you have to show the lender that you will be able to repay the money you re borrowing (plus interest) in a timely manner. In other words, these are not giveaways. These are primarily normal business loans that come with slightly more flexible qualifications and which have been flagged for certain groups in order to promote certain policy goals.

In most cases you will still need a credit score above 650 (check here for free ) and will need to present a solid business plan with projections (we recommend LivePlan to create a comprehensive business plan plus they come with hundreds of examples/templates which is a big help). Having some collateral and a down payment will also increase your chances of being approved for one of these loans.

Stay in touch and let us know how things go.

Good day! My two biz partners and I are looking to obtain a start up loan and hit the ground running. Credit score is 740 s, approvals right and left, obviously this is great and no problem. Problem we are running into is, we are unestablished which is apparently a major deal breaker. This particular venture previously done with much success by one of the three partners was producing 19k-20k/month and growing. His partner at the time split with nearly ALL the companies revenue (350K!), so my question is, how can we get the loan (50k-100k) to get started? Thanks!

Startups often have a difficult time obtaining traditional bank loans for the exact reason you re describing. If either of you have real estate that can be used as collateral, you may be able to obtain an SBA loan. However, for startups, it can take 2-3 months to get funded with an SBA loan.

If all three of you have credit scores above 700, you may want to consider personal loans with Lending Club to start. If you keep close records of how the proceeds are used, you should be able to refinance the loan with a business loan down the road, when the business has been operating for a year or two.

I have someone interested in investing in my food service business. He will invest $25,000 for start-up costs. What percentage of interest would be normally be paid, after he makes his money back?

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Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer .





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How To Set Up An Email Address For Your Business #opening #a #business

#business email address

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How To Set Up An Email Address For Your Business

These days it is almost more important to have an email address for your business than a physical address. Setting up an email account for your business can be done a few different ways. The easiest way is to set up a free account. You can also choose to go through your domain provider or through your website hosting company. Whichever way you choose, your company will benefit from it.

If you have a domain name that you purchased but have not established a website yet, you can still have an email address or several email addresses with your domain name as the extension.

Name.com offers three free email package options for hosting customers, with multiple email addresses that all flow through a central mailbox. This is the most common practice when establishing a company email, mostly because it’s an almost auto-pilot way to do so. Your hosting service, for many businesses, is your one-stop setup. They can handle your domain registration, your email creation, and design your website.

Establishing a business email is as simple as creating an account; after choosing a business name and picking a password the rest is practically automatic, especially if you are setting up a domain registration or hosting in the same breath.

We offer a great product to help you set up an email address for your business in just one click Name.com Email. All you need to do to set up your custom email address using name.com is press setup and then pick which domain name you want to use. You ll be able start sending messages immediately. Click here to create your email now.





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Unsecured Business Loan Up To $250, 000 #getting #a #small #business #loan

#unsecured business loan

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Get an Unsecured Business Loan in Just Days!

If you own a small business, you need access to capital to help your company grow and prosper. A great option for you to consider is an unsecured business loan from Balboa Capital. Unlike a traditional loan from a bank, an unsecured business loan can be approved without collateral or a near-perfect credit score. Plus, the application process requires far less paperwork. Our online loan application takes just minutes to complete, and we will provide you with a decision quickly. That means you won’t have to wait long to find out how much you might qualify for.

  • Easy Application/Quick Credit Decisions
  • Get up to $250,000 with Basic Information
  • Get up to $2 Million with Full Financial Package
  • Absolutely No Hidden Fees
  • Fast Processing
  • Flexibility for More Cash
  • No Restrictions on How You Can Use Your Loan
  • Perfect Credit Isn’t Required




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10 Steps For Starting a Car Wash From The Ground Up – Tommy Car Wash Blog #business #cards #cheap

#car wash business

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10 Steps For Starting a Car Wash From The Ground Up

As a 40 year veteran car wash equipment manufacturer and site developer, we’ve seen it all. We know what a daunting and potentially confusing process starting a new car wash can be. What comes first? Prospecting site locations? Securing financing? Assessing your market? How soon should you begin marketing? How long will the process take?

While we certainly can’t cover everything you need to know to start a car wash in a single post, we can take a few words to cover what we feel are the 10 most important steps to launching your own car wash business.

1) Location is Everything Go Scouting

Car washes aren’t automatically successful. Great care must be taken when selecting the location on which you want to build. Our Site Model Pages have in-depth descriptions of location criteria to consider (including population, competition, street types, car counts, and more) and our site development services can help you select and approve the best locations available in your area.

Start by driving around your target area, paying close attention to the relative traffic, types of local businesses, and anything that looks for sale. Get a feel for your potential market. You should also visit a commercial real estate MLS like Loopnet.com or many others. Be sure to take your time and never rush into a purchase.

2) Review the Competition

Try to get a feel for the local car washes in the area. How many customers do they have and how aggressively are they marketing? What will they do when you open your wash? Can they afford a multi-million dollar renovation to bring their wash in line with yours? Are they debt free and can they cut prices to outcompete you (with your interest payments) in the short term? Are their customers frequent users and very loyal—or are they waiting for something better?

Entrenched local competition can be dangerous, even for Totally Tommy buildings, and selecting a location with some elbow room between you and competitors is important. But don’t worry too much about single stall automatic car washes or local fundraisers—you’ll be working in a completely different weight class.

3) Do the Paperwork

Find out what local city or county department handles business licenses and request an application, as well as information on local utility usage codes, insurance requirements, tax rates, and other requirements for opening a business. You will also need a Taxpayer Identification Number and you should use the U.S. Patent and Trademark Office’s trademark search tool to check your brand then register to claim it.

Each area and city has different rules, so make sure you take the time to understand everything and keep your business in line. If you can, also get information on local sanitary sewers (for your waste water), utility prices, water usage limits, and other regulations.

4) Planning and Approval Process

Set up a meeting with the city planner. Show them a rendering of your concept and try to get verbal approval of the design—or a list of probable issues to address. If you have approval you can set up a formal meeting to present your plans and have them voted on at a city council meeting. With luck, your Totally Tommy building with its modern style, efficient design, and great investment potential will blow them away! Try to be friendly, optimistic, and down to earth. If the city gets on board with your project it can make the whole process move along more smoothly.

5) Research Car Washes

Tour as many successful car washes as possible to see what makes them tick—especially if you haven’t been in the business very long. Check out automatic car washes, partially automatic, express, detailing, and other washes to see how they differ from one another. Operations, promotions, pricing, services, demographics… Try to learn as much as you can and develop as deep a background as you can with operations, staffing policies, equipment repair, and customer management (aka, complaints ).

To help out, our team has training available to teach you everything you need to know BEFORE you’re trying to run your wash on hot days with long lines.

6) Operations Decisions

Will you run your car wash independently or will you have a franchise, LLC, or S-corp? There are many models, each with pros and cons. Franchises offer support at the cost of a residual. Solo operations offer total freedom but deprive you of much-needed backup and brand awareness. How much personal involvement are you looking for? If you plan on hiring a manager instead of handling things yourself, make sure he or she has the necessary qualifications and is heavily invested in your future success.

7) Make a Business Plan!

Your car wash business plan (click for outline) should focus on both long term and short term operations. Use a professional service and remember that the more detailed, thorough, and researched your plan is, the better it will look to investors or your bank. Include costs (up front and overhead costs), planning for building to long-term revenue management, and marketing strategies (launch and long-term). Professional proforma companies are ready to help and our team is also standing by with years of experience to back up our advice.

8) Get Financing

This is likely the most challenging step, and your success here will largely depend on how well you’ve researched and prepared your business plan ahead of time. A solid revenue model can help convince investors to put up the capital for your new car wash business, so be prepared to demonstrate that you need enough funding for a truly high quality car wash facility and equipment with great return potential. You will also need a convincing resume with business and/or car wash experience, and a solid marketing plan.

9) Build the Right Wash

Car washes thrive when they capture the attention of the local market and are designed to make turning in, purchasing a wash, and moving through the tunnel as quick and easy as possible. The Totally Tommy building is the best way to do just this, drawing huge numbers of passing customers with a great looking building, perfected layouts, and a full and fast service menu. Proven in scenarios around the country, every component of this facility design has been carefully thought out to create a single, cohesive investment that pays off. From our towers to our pay system, deceleration lanes, glass walls, stainless steel equipment, and clear roof, everything is designed to project sophistication, professionalism, and value. So why waste money reinventing the wheel, and why risk building a second-best wash when a Totally Tommy wash is waiting for you?

10) Market your New Business

Customers don’t know what they don’t know, so don’t just expect them to line up without any effort on your part. Make sure to let the community know about your wash ahead of the grand opening with onsite advertising as well as print, radio, local web, and possibly TV advertisements. You’ll begin to build a curious customer base who will drop buy and tell their friends and family afterwards. $15,000 or $1 / car for initial marketing including billboards, mailings to 5 mile radius, promotional washes, and radio commercials is a good place to start at your launch and $.10 / car is a standard ballpark long-term rate for the future. One or two day Social media campaigns (incentivize customers with free washes for best results) can also be highly successful. Be prepared to collect feedback and adapt your marketing program for the greatest possible effectiveness moving forwards.

Launching any business, and especially a brick and mortar car wash filled with high-end technology, is a complex and daunting prospect. But don’t worry. The team at Tommy Car Wash Systems has hundreds of washes behind us with thousands of installations and developments. We know the steps you’ll need to take to get your wash planed, approved, built, and operational, and we’ll help you turn a fantastic business opportunity into an even better reality.

Tommy Car Wash Systems

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RBI opens up bond market #business #news #today

#bond market news

#

RBI opens up bond market

The Reserve Bank of India (RBI) on Thursday announced a comprehensive set of measures to change India s lacklustre bond market and provide a push to the currency market as well, completing the agenda of Raghuram Rajan, the outgoing governor of the central bank.

The RBI proposed to allow banks to raise capital through masala (rupee) bonds in the overseas market and liberalised the currency market by allowing customers residents and non-residents to maintain big open positions.

Among a series of blockbuster measures, the RBI also proposed to allow listed companies to lend money to banks through repo market mechanism, essentially overnight money, something that can have wide ranging ramifications for call money rates, short-term money market rates as well as the banking system liquidity.

The central bank also proposed allowing listed companies to lend longer tenure money to banks through the repo market mechanism. This will have an impact on interest rates, the bond market, and liquidity in the banking system.

The RBI said it would also seek legal amendments to allow banks to borrow from it by pledging corporate bonds. This should raise demand for rated corporate paper and make secondary trade possible. Currently, 95 per cent of corporate bonds are privately placed.

The proposal to allow foreign portfolio investors direct access to bond trading platforms for government and corporate paper will widen the investor base. The central bank has also proposed that banks nudge corporate clients to borrow from the bond market. Final guidelines on most of today s proposals will be issued after Rajan s departure, but some measures come into effect immediately. For example, the steps taken in the currency market essentially opened up India s closely-guarded currency market, perhaps bringing an element of speculation in the exchange rate. The Reserve Bank will now permit entities exposed to exchange rate risk, whether resident or non-resident, to undertake hedge transactions with simplified procedures, up to a limit of $30 million at any given time. The exposed person will be free to access any market (over the counter or exchange) and use any of the permissible products, the RBI said in its statement on its website.

In addition, banks might, based on their assessment of the risk management capabilities of a customer, allow an open position limit of up to $5 million, the RBI said. The currency market move was intended to improve liquidity and depth, the RBI said, adding the limit would be revised according to experience. Guidelines on this will be issued by November. Another critical change is allowing companies to lend money to banks through a market repo mechanism. So far, listed companies could only lend a maximum of 7-day money, taking government securities as mortgage, also known as repo. The RBI said this constrains their participation . It is proposed to allow such companies to lend through the repo market, without any tenor or counterparty restrictions. Guidelines based on a comprehensive review of regulations on market repo in G-secs are being issued today, it added.

Analysts hailed the measures taken by RBI. These are all critical reforms from short-to-long term perspective. Opening up of global markets for AT1 and Tier-II bonds in negative rate condition prevailing globally will be beneficial for banks, said Soumyajit Niyogi, associate director, India Ratings and Research. Listed corporates are encouraged to park short-term surplus fund through repo in G-Sec. FPI s and Individual s direct presence in bond markets and inclusion of corporate bond in LAF window will strengthen market activities, Niyogi said. Gaurav Pradhan, co-head of investment banking & capital markets for Credit Suisse in India said RBI s proactive steps acknowledged the potential of the masala bond market. Further issuance from banks will help broaden and deepen the market for masala bonds, making the product more sustainable in the long run as a financing option. From a macro perspective, we expect the RBI s move will help banks to better manage their balance sheets and lower their cost of funds, and should have a positive impact on local interest rates, Pradhan said.

Karthik Srinivasan, co-head, financial sector ratings, ICRA said RBI measures will encourage greater participation from issuers, investors and intermediaries while the permission to banks to raise masala bonds can develop the overseas market for rupee denominated bonds.

Many of the measures for the corporate bond market were built on recommendations in a report by the HR Khan committee released a week ago by the Securities and Exchange Board of India. These measures are intended to further market development, enhance participation, facilitate greater market liquidity and improve communication, the central bank said.

The RBI also decided to enhance the aggregate limit of partial credit enhancement provided by banks to corporate bonds to 50 per cent of the bond issue size from 20 per cent earlier, provided a single bank restricted its enhancement to 20 per cent of the issue size. It also proposed to permit brokers in corporate bond repos, authorise the platform for repo in corporate bonds, and encourage credit supply for large borrowers through the market mechanism. To further encourage the overseas rupee bond market, banks are being permitted to issue rupee bonds overseas (masala bonds) for their capital requirements and for financing infrastructure and affordable housing, the central bank said.

The bonds should be perpetual debt instruments used to shore up additional Tier 1 and Tier II capital of banks. Masala bonds to be issued for financing infrastructure and affordable housing can be of the nature of any long-term debt. The central bank said it had worked out a market making scheme in government securities by primary dealers (underwriters of government bonds) in consultation with the government which might help in increasing the liquidity of semi-liquid securities. The central bank will soon comprehensively review the framework for hedging of commodity price risks in the overseas markets by Indian companies.





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