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What is the difference between fund based and non fund bases financing?
Wiki User
∙ 10y ago
NON FUND Base financing No outlay of funds (i.e transaction of funds is not involve), here Assurance is given by bank; if the principal party defaults the bank is liable to pay to beneficiary, Banks earn Commission through this, it is a Contingent Liability(it may or may not arise) for bank.
FUND Base financing transaction of funds involve, Banks earn Interest through this, it is the Liability for the bank
Wiki User
∙ 12y ago
Wiki User
∙ 10y agowhat is diffrence beteen fund base and non fund base facility
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N
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