Access the Capital You Need to Grow Your Business
Bank Funding
Bank Funding is about helping businesses secure loans and other forms of financing from banks and financial institutions. We help you to navigate the funding landscape by finding the most suitable financial products in your given circumstances, approaching the right lenders through our extensive network, negotiating competitive terms, and guiding you through the entire loan process, even after the disbursal of the loan facility. Through this, we want to help businesses who are looking to expand, invest, or manage cash flow effectively.
How to obtain Bank Funding
Here are the key things you should ensure while obtaining bank funding
Your growth is significantly influenced by the lender’s willingness to extend additional credit. Select a bank or financial institution that aligns with your business’s needs and has a track record of supporting similar ventures.
Different funding needs require different loan products. Opt for a Cash Credit or Loan Against Property (LAP) Overdraft for managing unexpected cash flow challenges. For capital expenditure (capex) and expansion plans, a Term Loan may be more suitable.
Maintain a robust credit score and healthy financial standing. Lenders will evaluate your credit history, financial statements, and repayment records to assess your reliability.
Clearly articulate the purpose of the loan and provide a well-documented business plan. This demonstrates to lenders how the funds will be used and the anticipated outcomes.
Be ready to offer collateral or guarantees to secure the loan. This could include assets, inventory, or personal guarantees, depending on the type of funding.
Show your ability to repay the loan through detailed cash flow projections, profitability forecasts, and historical financial performance.
Thoroughly examine the loan agreement’s terms, including interest rates, repayment schedules, fees, and covenants. Ensure these terms align with your business needs and financial situation
Foster and maintain a positive relationship with your banker. A strong relationship can lead to more favourable terms and additional support.
- Provide complete and accurate documentation, including financial statements, tax returns, legal documents, and business licenses. Adhere to regulatory requirements to avoid any issues.
Consult with financial advisors or consultants to guide you through the funding process. Their expertise can help you prepare necessary documents, negotiate terms, and make informed decisions.
How to obtain Bank Funding
Secured Loan Products
Term Loan
A Term Loan provides a lump sum amount of fund that is repaid over a fixed period with regular installments. This facility is suited for long-term investments such as purchasing equipment, expanding facilities, or funding major projects. With structured repayment schedules and competitive interest rates, Term Loans offer a reliable financing option for significant business needs. We assist in finding the best Term Loan options, ensuring competitive rates and suitable repayment terms tailored to your business goals.
Loan Against Property
A Loan Against Property (LAP) allows businesses to leverage their assets to secure financing for various purposes. Whether it's for expanding operations, funding new projects, or meeting urgent cash flow needs, this facility enables you to borrow against the value of your commercial or residential property or other eligible assets. With competitive interest rates and flexible terms, LAP offers a substantial loan amount while keeping your property as collateral. We help you find the best lenders for a Loan Against Property, ensuring competitive rates and favourable terms with minimal hassle.
Loan against Securities
A Loan Against Securities provides businesses with liquidity by using financial assets such as shares, bonds, or mutual funds as collateral. This facility is ideal for accessing funds without liquidating your investments, allowing you to maintain your portfolio while meeting your financial needs. The loan amount is based on the market value of the securities pledged, offering a quick and flexible funding solution. We assist you in securing a Loan Against Securities, connecting you with leading financial institutions to get the best possible terms.
Buyer’s Credit
Buyer’s Credit is a short-term financing solution provided to importers to pay for goods before they are delivered. This facility helps buyers manage their cash flow and extend payment terms while facilitating smooth international trade. It is typically offered at competitive interest rates, helping businesses optimize their working capital. We assist in arranging Buyer’s Credit to enhance your trade financing and manage import costs effectively.
How to obtain Bank Funding
Working Capital Finance
Cash Credit or Working Capital Finance
Cash Credit is the enabler for almost every trader, manufacturer and business out there. A business’s capital is majorly utilized in holding stock or giving credit period to its customers. Your turnover is directly a product of your investment in working capital and the number of times you can turn it each year. CC loan funds this working capital, leading to increased growth rate of the business. We assist you in identifying the right lenders and obtaining the cash credit facility at the most competitive rates with minimum collateral requirements.
Overdraft Facilities
An Overdraft Facility provides immediate access to extra funds beyond your current account balance up to a pre-approved limit. This facility helps manage short-term cash flow gaps and unexpected expenses by offering a financial cushion with interest charged only on the utilized amount. It’s a cost-effective solution for maintaining liquidity and operational flexibility. We help you secure Overdraft Facilities with competitive terms, ensuring your business remains agile and responsive to financial needs. We help you find the best lenders for a Loan Against Property, ensuring competitive rates and favourable terms with minimal hassle.
Export Financing
Export Financing provides funding to support international trade by covering the costs associated with exporting goods and services. This facility includes various options such as pre-shipment and post-shipment credit, helping businesses manage export-related expenses and ensure smooth transactions across borders. We offer comprehensive Export Financing solutions to support your global trade operations, ensuring timely funding and competitive terms.
Invoice Discounting/TReDS
Invoice Discounting allows businesses to convert their outstanding invoices into immediate cash by selling them to a financial institution at a discount. This solution helps improve cash flow, manage working capital, and maintain operational efficiency. The Trade Receivables Discounting System (TReDS) Exchanges further facilitate this process by providing a platform where buyers and sellers can trade invoices, enhancing liquidity and transparency in the receivables cycle. These include RXIL, M1 Exchange and Invoice Mart. We assist in setting up Invoice Discounting facility on TReDS and utilizing TReDS to accelerate cash flow and streamline receivables management.
Factoring
Factoring involves selling your accounts receivable to a third party (factor) at a discount to obtain immediate cash. This facility enhances cash flow, reduces credit risk, and accelerates working capital by turning receivables into cash without waiting for customer payments. It’s a valuable tool for businesses seeking to improve liquidity and streamline collections. We connect you with factoring solutions tailored to your business needs, helping you optimize cash flow and manage receivables effectively.
Supply Chain Finance
Supply chain finance is a financing solution in which suppliers can receive early payment on their invoices and buyers get an extended credit period. Supply Chain Finance optimizes the flow of funds across the supply chain, providing working capital to suppliers and extending credit to buyers. This facility helps improve liquidity, reduce costs, and strengthen supplier relationships by offering financing solutions tailored to your supply chain dynamics. It ensures that your suppliers are paid on time while you enjoy extended payment terms. We assist in creating a Supply Chain Finance program for large corporates to help enhance your operational efficiency, financial stability and stakeholder relationships. Let us connect you with the right financial partners to streamline your supply chain.
How to obtain Bank Funding
Non-Fund Based
Letter of Credit
A Letter of Credit (LC) is a financial instrument issued by a bank guaranteeing payment to a seller on behalf of the buyer, provided that the seller meets the specified terms and conditions. This facility reduces payment risk and facilitates smooth international and domestic trade by assuring sellers of payment upon delivery of goods or services.
We help you obtain Letters of Credit efficiently, ensuring secure and reliable transactions for your business.
We assist you in identifying the right lenders and obtaining the cash credit facility at the most competitive rates with minimum collateral requirements.
Bank Guarantee
A Bank Guarantee is a promise by a bank to cover a financial obligation if a borrower fails to meet their contractual commitments. This facility is often used in contracts, tenders, or leases to assure parties of payment or performance. It provides security and builds trust between business partners by mitigating financial risk. We help you secure Bank Guarantees with ease, ensuring you have the financial backing needed for successful business operations and contracts.
How to obtain Bank Funding
Real Estate / Infra Specific Products
Unsold Inventory Funding (Related to Real Estate)
Unsold Inventory Funding provides financing based on the value of unsold inventory to the developer against unsold units as collateral. This facility helps businesses access funds tied up in inventory, improving liquidity and enabling better cash flow management. It’s a valuable solution for businesses who have blocked funds in existing projects and are planning to start a new project. We help you secure funding against unsold inventory, optimizing your working capital and enhancing financial stability.
Lease Rental Discounting
Lease Rental Discounting (LRD) allows property owners to leverage future rental income to secure a loan. By discounting the rental payments from commercial properties. Businesses can obtain funds for various needs while retaining ownership. This facility is ideal for maximizing the value of income-generating properties. We specialize in securing Lease Rental Discounting, ensuring you get the best terms based on your property’s rental income.