How to prepare Cash Budget for Bank Loans?
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How to prepare Cash Budget for Bank Loans?

Learn how to prepare as well as analyse Budgets for obtaining Bank Loans

Instructor: CA N Raja, B.Com., PGDBA, FCA

Language: English

Validity Period: 365 days

₹3499 42% OFF

₹1999 including 18% GST


Are you a Finance Manager / Project Consultant, aspiring to learn how to prepare cash budget so you can obtain short term loan / Ad hoc Credit facilities / Letter of Credit facilities for your Organisation / Client?

Are a Banking Executive processing short term loans / ad hoc credit facilities on the basis of cash budget, but not sure how to analyse or approach Budget?

Then this course is for you - Welcome to your course How to prepare Cash Budget for Bank Loans

By taking this course, you will learn

a) What is Cash Budget?

b) Objectives of Preparing Cash Budget

c) Who are the users of the Cash Budget

d) When cash budget is insisted on lending?

Not only that, you will also get

e) Exposure to Cash Budget Format

f) Simple Case Study

followed by real life Budgets explained in different scenarios.

So, what is Budget?

A budget is a plan. It is a plan for owners and managers to achieve their goals for the company during a specific time period.

In this course, you will learn about Cash Budget in detail especially from the angle of raising short term funds from Banks.

The preparation of a cash budget is an important management task. While some small businesses may be able to survive for a time without budgeting, savvy business owners will realize its importance. A cash budget can protect a company from being unprepared for seasonal fluctuations in cash flow or prepare a company to take advantage of unexpected quantity discounts from suppliers.

A company’s cash position determines how suppliers will be paid, how a banker will respond to a loan request, how fast a company can grow, as well as directly influencing dividends, increases to owner’s equity, and profitability. A cash budget is a management plan for the most important factor of a company’s viability— its cash position.

Why Prepare a Cash Budget?

A cash budget is important for a variety of reasons. For one, it allows you to make management decisions regarding your cash position (or cash reserve). Without the type of monitoring imposed by the budgeting process, you may be unaware of the cash flow through your business. At the end of a year or a business cycle, a series of monthly cash budgets will show you just how much cash is coming into your company and the way it is being used. Seasonal fluctuations will be made clear.

A cash budget also allows you to evaluate and plan for your capital needs. The cash budget will help you assess whether there are periods during your operations cycle when you might need short-term borrowing. It will also help you assess any long-term borrowing needs. Basically, a cash budget is a planning tool for management decisions.

More discussions inside as video lectures - see you inside the course.

Note :- This Course is still in its early stage as contents are being added.

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