Many a times we read in financial newspapers about channel financing. Channel Financing is/are associated with.....begin{enumerate}item SME lendingitem Supply chain financeitem Retail lending.end{enumerate}

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Many a times we read in financial newspapers about channel financing. ‘Channel Financing’ is/are associated with____

A	Only 1
B	Only 2
C	1 and 3
D	Only 3

Explanation:

Detailed explanation-1: -Channel financing is a kind of financing that provides immediate realization of sale proceeds to the supplier, making it a cash sale. It’s a funding mechanism by which venture capitalists and financial institutions provide short – term working capital facilities to the supply chain stakeholders.

Detailed explanation-2: -Channel financing is an innovative finance mechanism by which the bank meets the various fund necessities along your supply chain at the supplier’s end itself, thus helping you sustain a seamless business flow along the arteries of the enterprise.

Detailed explanation-3: -The predominant sources of finance used by MSMEs are bank loans; loans from nonbanking institutions (e.g., NBFCs); venture capital; microfinance institutions; loans 3 Page 6 ADBI Working Paper 581 Singh and Wasdani from family, relatives, and friends; equity finance; and own funds (Mallick et al.

Detailed explanation-4: -As you are aware the Reserve Bank has constituted an ‘Expert Committee on Micro, Small & Medium Enterprises (MSMEs)’ to understand the structural bottlenecks and factors affecting the performance of the sector.

There is 1 question to complete.