What does FAPC mean in FINANCE

Finance Against Packing Credit (FAPC) is a form of loan that enables businesses to access funding against the collateral of packing credit from the bank. It helps in financing business activities like purchase and sale of goods and services, payment of salaries, repayment of existing loans, etc.

FAPC can offer businesses higher working capital limits than traditional banking products, as it is based on both the collateral in the form of packing credit and also on commercial terms. The terms can be negotiated for higher limits making it beneficial for businesses who need additional funds quickly and easily.

To apply for FAPC, you need to have an account with an approved lending organization such as a bank or non-banking finance company (NBFC). You can then submit your application along with all required documents such as bank statements, cash flow projections, etc., to avail this type of loan.

You will need to submit documents such as a authenticated copy of your packing credit from your bank or NBFC, audit reports if necessary, copies of financial statements like balance sheets and profit & loss accounts and any other relevant documents depending on your lender's specific requirements.

No, you do not have to provide any physical collateral security when availing Finance Against Packing Credit loans. However, you must provide your packing credit details in order to avail this type of loan.

If you default on your payments or fail to repay the debt within the prescribed time frame then there may be certain legal repercussions which include penalties imposed by lenders or seizure of assets which act as security against defaulting debtors. It is important that businesses take all necessary steps towards repaying their debt without missing any payment due date in order to avoid facing any legal charges.

Interest rates charged on Finance Against Packing Credit are generally lower than other forms of business financing because it has both physical collateral in the form of packing credit as well as commercial terms which make it much more secure than other forms of finance like unsecured loans. The exact interest rate charged depends upon factors such as risk associated with debtor's profile and negotiating capacity between borrower and lender.

Generally no prepayment penalty is applicable when availing Finance Against Packing Credit but some lenders may charge additional fees or penalties for early repayment so it is best that one checks with their respective lender before opting for pre-payment facilities.

The approval process varies from one lender to another but typically applications are processed within 3-7 days once all required documents are submitted. Additionally, once approved, disbursement may take an additional few days depending upon various factors like documentation requirement etc.