Debt is one of the cheapest source of finance available for the business owners. The dynamics of the debt requirements of business are transforming over a period of time.
We already have some traditional ways of raising finances like raising term loans for fixed capital, cash credit and overdraft for working capital requirements and Letter of credit and bank guarantee in the form of non fund based limit.
There are new ways of meeting the debt requirements like post shipment limits, foreign currency term loans, invoice financing, equipment financing, merchant cash advances, structured cash flow financing, real estate financing, transport financing, school financing, first loan default guarantee and other models.
With the emergence of new age private banks, NBFCs , international banks and fin-techs coming into the picture the facilities of debt finance is now available to those who were previously not eligible.
It us very important to understand the business model and understand how that debt can be financed at different stages of the business cycle.
Be-spoke solutions-Understanding your business model helps us to direct you the best financial institute that can serve your requirement with least possible interest rates and processing charges which will optimize the finance costs of the company.
Wide coverage- We partner with a large number of financial institutions helping us the to recommend appropriate debt model.
Easy documentation- Professional way of handling the representation before bankers will help you fasten the process. Documentation would be an easy journey with our team assisting you through the process.
Confidentiality-We have strict NDAs with our clients and keep all the client data secure and disclose to bankers only after signing of mandate.
Support-Our team of professionals are always keen to serve your financial/advisory requirement and handhold you throughout the process.
Inventory and debtors are the current assets that define the drawing power of a loan.They are backed by collateral security. This is considered as Cash credit.
Letter of credit is very instruments in trade finance. Domestic and international letter of credits brings in a trust factor between supplier and the customer who are in different parts of the world and brings down the credit risk.
Bank guarantees play an important role is pitching for bigger projects. Performance guarantee and finance guarantee are two different variants that are required by entities in delivering their performance and meeting financial obligations.
Negotiations/ payments/ acceptance of export documents under letters of credit
Purchase/ discount of export documents under confirmed orders/ export contracts, etc
Advances against export bills sent on a collection basis; exports sent on a consignment basis; undrawn balance on exports and approved deemed exports Contact
Invoice discounting releases money in the cash conversion cycle and makes working capital available for utlising resources at optimum levels.
All Business Units who want to avail loan facility for manufacturing and services activities along with self-employed and professional individuals covered by MSMED Act 2006, wholesale/retail trade
Minimum loan amount: > Rs 10 lakhs
Maximum loan amount: Rs. 20 crores
Margin (%) : Minimum 25% cash margin for NFB facility
Pricing : Competitive Interest Rate Linked to MCLR
- Minimum three years in the same business and location
- Not listed in RBI Defaulter’s List, CIBIL database or in any negative database
- Satisfactory conduct with existing banker (For Take over proposals)
- Group concerns not listed in RBI / CIBIL / Internal database of the Bank
- Positive TNW and PAT for two years
- Equitable mortgage of land and/or building [other than agricultural property] and /or pledge of specified financial assets viz. Term Deposits
- Hypothecation of stock-in-trade and receivables of the borrower
- Age of the Building offered as security shall not exceed 30 years. However, residual /balance life of the building shall be at least 5 years more than the repayment tenor.
Proof of Signature, Identity and Address –
- Voter ID
- Driving License
- Business registration certificate
Proof of income
- IT returns and financials of last 2 years along with computation of income
- Audited Financials-Profit and Loss and Balance sheets
- All running bank statement of latest 6 months.
Other documents supporting your income. Eg.VAT returns, Rental agreements, Form 26AS.