Cash Credit Facilities Cash Credit is an instrument of working capital finance. The lender enables customers to use the specified amount. And pay interest only on the used amount. The amount cannot exceed the sanctioned amount. This is known as a “Credit Limit” by the bank. The cash credit facility is generally given for 12 months. It was renewed at the end of the year. CC facility was used to overcome the cash crunch faced due to a credit period of debtors. Drawing Power (DP) is an important concept for Cash Credit (CC) facilities. It is the limit up to which a firm or company can withdraw from the working capital limit sanction. Features of Cash Credit Facilities Majorly, the borrower’s principal banker gives the CC facility. When the borrower uses the amount, the interest is charged only then. Thus, it reduces the financing cost. There are no restrictions on the number of withdrawals of the borrower. The only restriction is on the withdrawal amount. The creditworthiness of the borrower determines the borrowing limit. Thus, the borrower can only withdraw up to the limit the banker has set i.e., as DP states. The credit period is 12 months, generally. After that, the borrower has to renew the period. CC is available in both secured and unsecured funding. It depends upon the availability of collateral. In the case of secured funds, collateral is assets such as stocks, fixed assets, or property. The most important benefit of cash credit is its flexibility in deposits and withdrawals. Thus, a borrower can save a lot of interest costs by depositing as and when the cash is available to him. Example “ABC Private Ltd” is a company engaged in the manufacturing of goods. Being a manufacturing company, the goods are majorly sold in bulk and on a credit basis. The credit period of the debtor is 30/60/90 days. Also, there was unsold stock. In such a case, the company’s capital is stuck in the form of inventory and accounts receivable. Hence, the company takes a short-term loan in order to meet its working capital issues through a cash credit facility. Cash Credit loan eligibility Age criteria: Generally, the age of an applicant should be between 21 to 65. The business should have an existence of at least 3 years or as required by the lender. CIBIL ratings: If CC is obtained through an unsecured funding option, the borrower will need a creditworthy CIBIL score. Financial record: Most borrowers have to submit specific financial record which varies according to the lending institution and also upon the borrower’s business. There is also a specific requirement of monthly income/ turnover criteria for businesses. Note: Eligibility criteria vary from lender to lender. The above-mentioned is a major user. Why choose Terkar Capital? Our cash credit facilities provide flexible financing options tailored to meet your specific needs. With our CC facility, you can access a specified amount and pay interest only on the utilized funds. We determine your borrowing limit based on your creditworthiness, ensuring you have the necessary resources to overcome cash crunches. Whether you require secured or unsecured funding, our cash credit facilities offer the flexibility and support you need to fuel your business growth FAQs 1. What is the difference between CC and Loan? A lender offers a term loan at a specific rate of interest. It has to be repaid within a specified tenure. Whereas, the CC facility is short-term finance. It helps to overcome working capital issues. The banker specifies a certain limit up to which the borrower can withdraw money. He can pay interest only on the used money. 2. Who can avail CC facility? All the manufacturing and service industries, traders, distributors, companies, partnership firms, and LLPs can apply for a CC facility. 3. What is the amount offered by CC Facility? The amount of CC depends upon the drawing power of the borrower. DP is calculated by considering the amount of stock, accounts payable, and accounts receivables. 4. Is collateral required? The collateral depends upon the availability of the borrower. Whether he possesses collateral or not. If the borrower does not have collateral, the ROI in such a situation will be higher than in the secure one.

Unsecured Business Funds Overview Running an industry leads to many complications, whether it’s a manufacturing or service industry. If we talk about the Service Industry, it includes providing services to businesses or final consumers. This comprises information technology services, tourism, restaurants, transportation, health care, entertainment, clothing brands, etc. So, IT is the most developing sector, constantly requiring funds for developing new software, starting a new company, and many others. But when asking for loans, the significant gap they face is the collateral. Since these companies generally do not have fixed assets for collateral, they generally cannot opt for secured finance. Perhaps, the only asset that they possess is Intellectual Property (IPR). The IPR can not be kept as collateral for finance. Therefore, unsecured funding is the alternative available for IT companies. Unsecured Business Funds for IT Companies IT companies stand at the forefront of global opportunities fueled by advancements in AI, blockchain, and cloud computing. To capitalize on this expansion, strategic financial resources are crucial for investments in infrastructure and talent. In this context, Unsecured Debt Instruments, alongside other funding solutions, play a significant role in enabling IT companies to pursue these global opportunities. Learn the Unsecured Funding execution from the case study. IT Company Funding Opportunities IT companies have a wealth of global opportunities presented by the continuing evolution of new technologies such as AI automation, blockchain, and cloud computing. The rapid embrace of digital transformation by businesses worldwide has increased the demand for innovative IT solutions, allowing IT companies to expand globally and offer scalable solutions across different industries. This expansion, however, requires strategic financial resources to support investments in infrastructure, top talent, and innovation. In this context, IT company debt funding products become a strategic enabler, providing the necessary financial support for IT companies to seize global opportunities. Eligibility criteria for Unsecured Business Funds: Unsecured loans are granted to creditworthy borrowers, based on their CIBIL score. Many lenders require a score of 750, but scores between 650 and 750 are also favorable. Low CIBIL scores negatively impact loan eligibility. The borrower company must meet a minimum turnover requirement to qualify for unsecured business funds. The minimum age of the borrower should be 21 and the maximum 65. The business should have been in operation for at least 3 years. Free CIBIL Score and Report Conclusion In conclusion, access to adequate funding is clearly paramount for business operation and growth. As a result, Terkar Capital offers solutions, including convenient Unsecured Debt Instruments, to address your immediate financial needs and support your business expansion. Ultimately, explore both debt and equity funding options with us to fuel your IT venture’s success.

Loans against property Myths It is a market full of endless possibilities where anything can happen at any time. When it comes to mortgage loans, one of the most significant finance options is a Loan against Property. However, since these loans do require collateral against them and have minimal eligibility criteria, the amount that can be availed as a personal loan is less as compared to what can be assisted from secured loans. In case you want considerably high funds, then taking a loan against property is a better alternative. But, most people cease availing of such loans because of some myths associated with it. However, there is no reason to worry. To reassure you further on this, here are 6 common loans against property myths. 1. You can only take loans against residential property Perhaps the most common myth among most borrowers is that you can take a loan against property only on residential properties. However, that is not the case. You can get a LAP for both, residential as well as commercial properties. In turn, you can use the LAP to acquire commercial or residential property or for lease rent discounting. 2. You require to have a high income Contrary to popular belief, you need not fall under the ‘high-income section’ to avail of a LAP. Most loan providers have set income eligibility for salaried as well as self-employed individuals to avail of this type of loan. However, as long as you can assure them of your loan repayment capability, it would not signify whether you earn a high income or not. 3. You have to pay high-interest rates Because of the escalating property prices these days and the consequently high amount availed as a loan, most people assume that the interest rates on a loan against property would also be high. However, one needs to know that LAP interest rates depend on several factors. These cover the amount that needs to be borrowed, loan tenure, type of property, valuation of your property, etc. As a result, the interest given by different loan providers differs. However, most loan providers allow a range of options to negotiate the interest rates on LAP depending on how much your credit score is and the estimated rate for the property. 4. You can’t use the property used for a mortgage Most borrowers worry that once they mortgage their property for a loan, they cannot utilize the property anymore. However, this is not valid at all. Yet after taking a loan against a particular property, the borrower can enjoy the complete right to use it. Usually, the property that most borrowers pledge for a loan is their residence or commercial shops that they use for doing their daily business. During the period of taking a loan against such properties, they worry about losing their residence or shop. However, there is no need to bother. As long as the borrower does not default on his or her loan payment EMIs, he/she can enjoy living in the house or use the shop that is mortgaged with the loan provider. 5. The approval process is stringent While availing of a personal loan is very simple, these days, availing of a LAP is likewise not much of a hassle. As long as the borrower matches the loan against property eligibility criteria laid down by the particular loan provider, he/she can easily avail of a loan. 6. Borrow loan amounting to the full value of property Normally, when you appeal for a LAP, your approval is denied due to several factors. One point to note is the current market value of the property. Once the bank or NBFC determines this, it comes at a sanction based on the loan-to-value ratio. The rate discriminates from lender to lender; you can avail anywhere between 75%-90% of the property’s value as a sanction. These were some of the loans against property myths. If you want to be conscious of the same in a detailed way, India’s best financial advisor, then Terkar Capital can help you. It does not just offer you an opportunity to compare loans from private/public sector banks but also supports you get the loan in a hassle-free manner. Loan Against Property Myths at a glance The loan against property is a secured loan that offers high funds and low interest rates as it requires collateral against the loan. However, many people avoid availing themselves of these loans due to various myths associated with them. The article suggests that these myths are baseless and should not deter individuals from considering loans against property as a viable option for fulfilling their financial needs. However, If you want to be conscious of the same in a detailed way, India’s leading financial advisor, Terkar Capital can help you. It does not just offer you an opportunity to compare loans from private/public sector banks but also supports you in getting the loan in a hassle-free manner.

Trade Finance Company Every growing business needs a robust financial foundation to operate smoothly. However, a lack of readily available working capital can often hinder operational efficiency. This is particularly true when trading domestically or across borders, where numerous financial elements come into play from initial procurement to final payment. This is where a trade finance company proves invaluable. Trade finance companies support businesses engaged in both local and international commerce by offering crucial funding to overcome financial hurdles and navigate the complexities of trade. Moreover, they provide trade finance solutions for businesses that effectively manage the inherent risks associated with cross-border transactions. Understanding Trade Finance Trade finance provides the necessary financial backing to manage cash flow in both domestic and international trade activities. Furthermore, it acts as a vital tool for minimizing risks, especially in cross-border deals where buyers and sellers may lack prior familiarity, leading to uncertainties about payment and fulfilment. Therefore, questions naturally arise: Will the buyer pay on time? Can we be sure of receiving the agreed-upon funds? Fortunately, trade finance services offer a resolution to these concerns, providing essential support for more secure and efficient transactions. In a typical trade scenario, there are two key parties involved: (1) The exporter, who requires payment for their goods or services.  (2) The importer, who wants assurance that their payment aligns with the quality and quantity of the received goods or services. Benefits from Trade Financing: Trade Finance helps in reducing the risk while dealing in the domestic as well as international markets. Being unaware of each other, both buyer and seller need a surety for a transaction with each other, which is solved by financial instruments used in Trade Finance. By choosing Trade Finance, the crunch of working capital will be resolved, which will increase the cash flow of the business. So, its main characteristic is working capital management which generates revenue and earnings for the business. The relationship between the buyer and seller is strengthened due to the availability of financial instruments like Bank Guarantees, LC Discounting, Factoring, etc. The financial instruments gain confidence between parties and build a relationship due to the guarantee given by a bank or a Financial Institution. Trade Financing Process Borrower agrees to purchase the goods from a supplier. And he agrees to terms with the funder and the funder pays the agreed amount to the supplier. The supplier then ships the goods to the borrower. After receiving goods from the supplier, the borrower sold the goods to the buyer and receives payment for the goods. The borrower then repays the money back to the funder. Understand the Process of Trade Financing Provider from the Case Study. Parties involved: 1. Borrower/Seller: A borrower is a person who is in the trading business and needs funds for trading activities. 2. Buyer: The buyer will buy goods from a borrower/seller. 3. Funder: Due to the lack of funds, the borrower seeks finances for trade from the funder/lending institution. 4. Supplier/Manufacturer: The supplier is the person who supplies goods to the borrower who then sells goods to the customers. Trade Financing Instruments 1. Factoring Finance Factoring is available to domestic as well as international customers. It is the financial instrument or debtor finance in which the seller sells its accounts receivable to a third party called ‘factor’ at a discount. There are three parties involved in such a transaction: a seller, a buyer, and a factoring company. In simple words, it is selling unpaid invoices for the requirement of instant cash. 2. Letter of Credit (LC) A line of credit / Letter of Credit is a guarantee that a financial institution provides to pay sellers on behalf of buyers in case of default on their part. Letter of Credit discounting serves as financial security for businesses involved in either export or import or both. 3. Bank Guarantee Bank Guarantee is a type of financial instrument that banks or Financial Institutions offer. It ensures the liabilities of the debtor will meet i.e., the bank will be held responsible for the non-payment of the debtor. Generally, it is a bank’s promise to a third person. So as to undertake the payment risk on behalf of its customers. The banker charges interest or fees on such an instrument which is based on the risk involved in the transaction. Terkar Capital: Leading Trade Finance Company Terkar Capital, a leading trade finance company, simplifies the complexities of trade finance for businesses operating domestically and internationally. Headquartered in Pune, with a corporate office in Mumbai BKC, we offer our financial services across major Indian cities. Our range of debt and equity funding options is tailored to the specific financial needs of each business, ensuring a dependable and efficient financial solution.

Business Loans for startup in India Securing adequate finance is essential for any business, particularly for new ventures. Startup business loans play a vital role in supporting these enterprises from their initial setup through operational phases, growth initiatives, and necessary upgrades. Therefore, understanding the available funding avenues is crucial for financial decision-makers in the startup ecosystem. Furthermore, business-term loans are a fundamental financial tool for startups in India. These loans provide capital for specific business needs and are repaid over a defined period. While a down payment might be necessary in some cases, understanding the different types of startup business loans is key. Meeting Capital Needs and Loan Classification These term loans address one-time capital requirements, such as acquiring assets or managing working capital. They are broadly categorized based on their duration into short-term loans and long-term loans. Discover the opportunity of working capital loans specifically designed for startups. Types of Term Loan: The main determinant is the specified period. A term loan is categorized as: 1. Short-Term Loan:  Usually reimbursed within a maximum of 5 years. 2. Long Term Loans: The repayment duration for this loan goes beyond five years, which can prolong up to 30 years. Term loans can be further described depending on the security necessity imposed by the lenders. Based on this model, a term loan can be further categorized as: A. Secured Some collateral security has to be presented to avail of a secured loan for startups. So, Most Banks and NBFC lenders seek suitable security for business loans. B. Unsecured These loans are granted without any collateral as security. Most of the Digital Platforms implementing business loans offer unsecured loans. It may be for amounts up to Rs. 5 Cr. However, such loans are usually short-term loans to be reimbursed in 2 years. Term Loan Eligibility – Business Loan Age Criteria: The minimum age of the candidate should be 21 years at the time of loan request and the maximum 65 years at the period of loan maturity The applicant should be an Indian citizen The applicant should maintain a good credit score Applicants should sustain a regular source of income Term Loan Examples related to Business Loan 1. Working Capital Loan Several types of term loans cater to specific business needs. Working capital loans, usually short-term, help manage immediate cash flow and day-to-day expenses, with repayment typically within 12 months 2. Overdraft OD or Overdraft is a different loan form in which the financial institution raises a credit limit, as necessary. The interest rate is repaid only on the amount used, not the specified withdrawal limit. The repayment security is as low as 1 month and can pass up to 12 months. Every year the limit has to be restored by the borrower from the lender. 3. Equipment Financing Businesses can use this type of loan. And industries for financing equipment or vehicles used for several purposes like agriculture, farming, commercial transportation, construction, etc. The equipment finance loan amount shall range wheresoever between Rs. 1 lakh to Rs. 10 crores. The term loan interest rate depends on the applicant’s profile and kind of business. Terkar Capital for Startup Business Loans At Terkar Capital, we understand the financial needs of emerging businesses and provide tailored startup business loans in India. Headquartered in Pune with a corporate office in Mumbai and operations across major Indian cities, we offer expert guidance to help you navigate the loan selection process and choose the most suitable repayment structure for your venture. Sources and related content

CIBIL score for Business loan CIBIL (Credit Information Bureau India Limited) or credit score reflects your creditworthiness. It has a basis on your borrowing and repayment history, as shared by lenders. Cibil’s score ranges between 300 and 900. A score above 700 is generally considered good. Different lenders have different requirements concerning CIBIL scores. It is like the first impression of the borrower for the lending institution. If a person manages his finances responsibly, then his CIBIL score for loan approval will always be higher. Whereas, the borrower who has a low CIBIL score will have lower creditworthiness towards the repayment of loans. Several factors are taken into consideration while calculating the credit score. It is like the relationship of the applicant with the bank, repayment history, outstanding debt, etc. Factors affecting credit score Here, we will discuss a few of them: 1. Repayment History of the borrower: Applicants’ repayment history influences most in credit score. It is a crucial aspect that is taken into consideration while undertaking calculations. The past performance of repayment of funds, whether the applicant has paid the loan in time or not is checked. The bank as well as the Credit bureau keeps track of month-to-month records of the EMIs of the applicant and studies their relationship with the banker. The timely repayments will give a positive score, but the inconsistency in payments will negatively impact the score. The repayment history contributes approximately 30-35% weightage to the overall score. 2. Credit Balance of applicant: The other factor is the credit balance in the account of the applicant while making repayment of loans. The score will be affected when the applicant does not have a favourable credit balance while making the payment through EMIs. Hence, one should maintain a credit balance in their account. 3. Outstanding Debt: Having an outstanding debt hampers largely on CIBIL. One must not have any outstanding debt while applying for the new loan, this affects your CIBIL intensely and negatively. The borrower loses the credit from the bank as well as from the credit bureau, and it becomes difficult to gain confidence again. 4. Duration in Credit Line: This impacts the medium on the score. Generally, banks, NBFCs, or Financial Institutions give priority to their old or regular customers. i.e. Their genuine customers and tend to help them throughout. This shows that you have used the given credit responsibly and have repaid dues on time. 5. Irresponsible Payment Behaviour: Many times banks remind their customers about the outstanding dues and still, they behave ignorantly in paying them on time. This will affect the score negatively and cause huge problems while sanctioning future loans. 6. Type of credit used: Any bank, NBFC, or Financial Institution can give any one of the secured or unsecured business loans. This type of credit too matters a lot in calculating credit scores and impacts up to 20% on the score. CIBIL score for loan approval A credit score is required in the process of a business loan. The higher the amount of the loan, the higher the credit score. The minimum CIBIL for corporate financing is usually between 700 and 750. Having this score means you are creditworthy and lenders will approve your loan application quickly. Below is the list of the places where CIBIL matters: In loan approval, mostly unsecured loans require a high score due to the absence of collateral security. While applying for credit cards, the score is checked for understanding whether or not the applicant has the capacity for repayment in a specified time. When a company wants to raise finance to a higher amount, the credit score is given the top priority. Advantages of a Good Credit Score A high Credit Score leads to several advantages for a borrower. Here are a few key advantages: 1. Credit from Lenders If an applicant has a good CIBIL score, he may get a loan from a financial institution with a lower interest rate and minimum documentation. However, if the CIBIL score of a candidate is low, the financial institution may reject his application for a loan or offer it at higher rates of interest. 2. Quick Approval A high CIBIL score states that you have good creditworthiness. Also will repay your loan on time to the lender. Therefore, the financial institution will process your loan faster. The ones who have a low CIBIL Score may have to submit several documents and find guarantors making the loan disbursal process time-consuming. 3. Low-interest rate Those who have a higher CIBIL, get a loan at a lower interest rate than the ones who have a lower one. This is because when one has a higher CIBIL score, the banks trust the borrower more than the ones who have a low one. 4. More Negotiation For people who have a higher score, financial institutions will grant loans to them quickly and at a low interest rate. Therefore, they get more negotiation authority to negotiate with the banks for a lower interest rate. 5. Higher Limit Loans With a good CIBIL, you may get loans to the upper limit. Therefore, you should do your CIBIL report check. 6. Easy Approval for Leased Properties A good credit score assists us in getting easy approval for loans even for rented or leased properties. Like commercial complexes, apartments, and so on. 7. Amazing Credit Card Offers If you have a good score, you may also enjoy credit card offers from various banks. These cards generally have higher limits, more privileges, and amazing offers and cash-backs. Learn how the Factors Affect the CIBIL Score and Their Impact on Loan Eligibility here. How can you improve a credit score? Following are the ways of growing CIBIL score for Loan Approval: Always try to pay dues on time i.e. may that be credit card dues or any other. Late payment negatively affects scores and becomes tedious to develop again. Maintain appropriate credit balance in a bank account. Having a low or negative balance affects the

Factoring Funding for Working Capital Factoring Funding is the financial instrument or debtor finance. In this, the seller sells its accounts receivable to a third party called ‘factor’ at a discount. There are three parties involved in such a transaction. A seller, A buyer, and A factoring company. In simple words, it is selling unpaid invoices for the requirement of instant cash. This helps the company with its short-term cash needs and manages money immediately. The factoring company pays 80-90% of the invoice amount immediately. Thus, it solves the problem of working capital. The remaining amount is kept unpaid by the factoring company. It depends upon the customer’s creditworthiness or the risk involved in the transaction. That is paid after deducting the discount. The factoring company is more concerned about the credibility of the debtor than the customer as he is the person who will pay money at maturity. Factoring is availed to domestic as well as international customers. Bridging Cash Flow Gaps with Factoring Working Capital Running a business often involves waiting for customer payments. Unfortunately, this delay can create working capital challenges, hindering your ability to cover immediate expenses or pursue new opportunities. However, factoring in working capital directly addresses this issue. Instead of waiting weeks or months for payment, Factoring Funding provides immediate access to a significant portion of the invoice value. As a result, you can manage your finances effectively and maintain a healthy cash flow. Benefits of Factoring Funding 1. Instant access to cash flow The factoring process is quicker as compared to loans, which may take a longer time to disburse the funds. So, it arranges the funds easily for the borrower. It solves the issue of a cash crunch. 2. Continuation in the business cycle Due to the availability of factoring services, the working capital issues are resolved and the business cycle continues. 3. Cash-flow without debt Since the factoring funding is not a loan, hence it does not add liabilities to the balance sheet of a company. So, It ultimately reduces the burden of debt. It is simply selling a company’s assets to a factoring company for immediate cash. 4. Flexible terms There are no long-term repayment periods like loans in factoring. The tenure depends upon the credit period of unpaid invoices sold by the company. 5. Easy process The overall process of factoring in funding is easy. The documentation is also hassle-free. So, one can avail the cash in barely one or two days. 6. No collateral Factoring Funding is a financial instrument of Unsecured Working Capital Finance. Hence it is collateral-free.  Disadvantages of Factoring: 1. Costs Generally, the costs of factoring findings are high as compared to other funding options. Fees or charges depend upon the tenure of the factoring. But we at Terkar Capital, arrange a reasonable cost of borrowing for our customers. 2. Lack of confidentiality The customer has to inform his client about the procedure of factoring. There is a lack of confidentiality in the process. 3. Approval based on the credibility of the debtor The factoring companies’ payment criteria depend upon the risk involved in the transactions. The lower the risk, the higher the chances of qualifying for the factoring procedure. The factoring company verifies the creditworthiness of the debtor, as he will be the person responsible for payment at maturity. Hence, the debtor should possess good credit in repayment. Types of Factoring I. Recourse Factoring: Recourse factoring is a method where a seller sells its invoices to a factoring company. In case of non-payment of an invoice, the seller holds the obligation and has to repay the same on behalf of his debtor. II. Non-recourse Factoring: In non-recourse, it is just the opposite. The seller holds no obligation in case of default in payment by the debtor. How factoring companies work? Why Terkar Capital? Terkar Capital offers loans to MSMEs, including Factoring Funding, a solution to address immediate cash flow needs. Factoring Funding allows sellers to sell accounts receivable at a discount, providing instant cash and managing short-term finances. Benefits include quick access to cash, business cycle continuity, no debt liabilities, flexible terms, an easy process, and no collateral requirement. FAQs on Factoring 1. What is the tenure in factoring? The tenure in factoring is lesser as compared to other funds. The tenure in factoring is totally dependent upon the credit period of the transactions. The period is for 30/60/90 days, etc as per the requirement of the customer. 2. Does factoring help International Clients? Yes, there are no geographical limits for factoring. In fact, it will give more benefits to International Customers as one will get exposure to LIBOR plus Spread. 3. What is the eligibility criteria for Factoring? Note- The eligibility criteria vary as per the geographical limits and the requirements of factoring companies. Below are a few of the criteria: 1. Customers should have unpaid invoices to factor in. 2. The customer and his debtor should have a good track record. 3. The customer’s company should have a specified annual turnover, as per the requirement of the lending institution. https://youtu.be/r9GNc9dxjBk

Corporate Finance Companies in India Every business needs funding to grow. A corporate finance company helps businesses get these funds in two main ways: selling the ownership of the company (called equity) or borrowing money (called debt). When borrowing, there are two simple types: borrowing without putting anything down (unsecured) or borrowing by promising something you own (secured). Understanding these options is key for any business. Importance of Corporate Finance in Business Growth Any company or business needs to manage its finances well, and corporate finance helps with this. It’s about how companies get the funding they need. Furthermore, it helps them create more capital and grow their business. Corporate finance also looks after important financial choices, such as deciding on big purchases and how to invest. So, understanding the fundamentals of corporate finance is important for Indian companies to make smart financial decisions and reach their aims. Sources and related content A. Secured Funding Secured funding involves borrowing finance by promising an asset as security. Consequently, the business isn’t personally liable. This often means longer terms and lower interest. Nevertheless, if repayment fails, the lender can sell the asset to recover their finance. Sources and related content Loan Against Property Working Capital Finance Machinery Loan Builder Finance Lease Rental Discounting (LRD) Loan Debt Syndication Foreign Currency Funding School Project Funding Sugar Pledge Loan Project Finance #2 Unsecured Funding Unsecured debt products are funding options that don’t need collateral. Therefore, the loan amount depends on the CIBIL score. Business owners often use this finance to manage short-term cash flow issues like supplier payments or working capital gaps. However, the interest rates are typically higher due to the lack of security. Sources and related content Unsecured Business Loans CGTMSE Loan (GOI backed) Unsecured Working Capital Bill Discounting LC Discounting Trade Finance Bank Guarantee Key Roles of Corporate Finance in Business Growth 1. Raising Capital: Corporate finance means raising the finances of the existing company by debt or equity. It is required for running the business efficiently. The need for funds can be for making expansions and diversification in business, payment dues, etc. 2. Research and Development: Finance is a crucial aspect of the business. It is also required for undertaking research and development. Thus, enhancing the functioning of a business organization. 3. Smooth Running of Business: For a business to run effectively, there should be proper,  legal, and other compliance. Like paying dues and taxes on time. So, it is again developed by corporate finance. Corporate Finance Process 1. Interaction with the client we understand client needs and their company’s financial situation, including funding requirements. Starting with a discussion of expectations, the process ends with finance disbursal. We offer the best financial products and a simple process, with expert guidance at each step. 2. SWOT analysis of the company It is important to know the strengths and weaknesses of the company. It will help us to draw the analysis of raising finances. Not only strengths and weaknesses but overall analysis of the company is essential to exactly understand which funding to go for. 3. Inspecting the market options After understanding the company, we check all factors and suggest the best funding option. We fully explain the process, check eligibility, and handle documentation. Sources and related content 4. Approval of Finances We arrange lender meetings and approvals to start the funding process. Our team handles this for easy finance disbursement. We also ensure the funding product suits the client’s repayment ability. Terkar Capital: The corporate finance company Corporate finance companies play a vital role in offering valuable financial guidance and securing funds in India. Also, they effectively handle financial choices that significantly influence business operations. Corporate funds can be raised through debt financing or equity financing. However, when it comes to Terkar Capital, we raise funds more through debt financing. We are a financial firm that provides both secured and unsecured business loans. Our timely execution and professional services make us stand apart. We understand borrowers’ needs, strengths, and weaknesses. So, If you are looking for a corporate finance company, here we are!!

CGTMSE scheme for MSMEs The Government of India, through the Ministry of MSMEs in collaboration with the SIDBI, jointly established a trust CGTMSE. It was officially launched on 30th  August 2000. Its primary objective is to offer credit guarantees to financial institutions that provide loans to MSMEs. Additionally, the CGTMSE scheme for MSMEs also encompasses partial collateral loans and retail trade, as part of the Rebooting CGTMSE initiative. CGTMSE Loan Consultant All the emerging businesses in India, micro, small, or medium, are in constant need of finances. Whether it’s for expansion, purchasing heavy machinery, paying creditors, addressing working capital issues, or settling outstanding dues. Unfortunately, many of these businesses lack the financial knowledge needed to secure the funding they need. Hence, we at Terkar Capital come into the picture to provide consulting to help MSMEs raise required finances. Apply Now Features of CGTMSE loan Scheme The initiative helps small businesses grow in a competitive market through accessible loans It also aims at strengthening the credit lending facility to developing industries and helping them raise funds for the same. Collateral-free loan offers a fast and convenient process It provides guarantee cover for lenders to protect against losses in case of borrower default. Coverage lasts for the loan’s entire term. The CGTMSE coverage ranges from 70-85% in case of non-payment by the borrower. CGTMSE offers guaranteed coverage ranging from 50% to 85%, subject to meeting specific eligibility requirements. The maximum number of funds availed in this scheme is Rs. 500 Lacs (i.e. Rs 5 Cr) CGTMSE provides good guarantee covers to North East Region Women Entrepreneurs as well and encourages them to expand their businesses. Procedure for CGTMSE loan scheme 1. Prepare a project report/ business plan The crucial step is preparing the project report or a business plan. It has to be submitted to the lending company. Here the lending company will scrutinize whether the company is eligible under the scheme or not. 2. Scrutiny of documents The lending institution or company will do a thorough investigation of the required documents and proceed with loans. 3. Sanction the loan a. Prepare a project report/ business plan The crucial step is preparing the project report or a business plan. It has to be submitted to the lending company. Here the lending company will scrutinize whether the company is eligible under the scheme or not. b. Scrutiny of documents The lending institution or company will do a thorough investigation of the required documents and proceed with loans. c. Sanction the loan The lender will sanction your loan after duly verifying your documents. d. Obtain CGTMSE cover Once the loan is sanctioned by the bank, the bank will apply to the CGTMSE organization and obtain the CGTMSE loan scheme for MSMEs to cover the loan sanctioned. After obtaining the loan, the customer will have to pay service charges or fees as per the requirement. Learn the process of CGTMSE Funding from the case study. How much is CGTMSE fees? The trust fund charges 1% p.a. of the amount so approved as fees: 0.75% – for loans of up to Rs. 5 Lakhs 0.85% for loans above Rs. 5 Lakhs but up to Rs. 100 Lakh. The credit guarantee available below this scheme is 75/80% of the amount so transmitted to a maximum cap of Rs. 62.5 Lakh / 65 Lakh for a loan facility of up to Rs. 50 Lakhs. The percentage guarantee implies 85% for microenterprises for up to Rs. 5 lakhs. The guarantee percentage is 50% of the amount approved for a credit of above Rs. 50 Lakhs with a maximum limit of Rs. 100 Lakhs. The ownership of the guarantee is a block of 5 years. Eligibility for CGTMSE (Borrower) 1. The applicant must be categorized as micro and small enterprises. 2. CGTMSE cover is available for Loans to Micro and Small Enterprises engaged in manufacturing or service activities. 3. CGTMSE cover is not available for loans to enterprises engaged in retail trade, educational institutions, training centres, self-help groups, and agriculture. 4. The business must have at least 3 years of continuity. Eligible Lending Institution: CGTMSE has designated Member Lending Institutions (MLI) which can provide loans to MSMEs. In this list, there are Government Banks, Scheduled Commercial Banks, Regional Rural Banks, NBFCs, Financial Institutions, etc. who have signed an agreement with the CGTMSE ministry. Why Terkar Capital? Terkar Capital is a leading CGTMSE loan consultant in India, specializing in empowering MSMEs through CGTMSE loans. We understand the financial needs of emerging businesses, especially MSMEs in India. Our goal is to provide personalized consulting services to help MSMEs secure the necessary funding for their expansion, machinery purchases, working capital, and more. We offer a range of financial products, including secured and unsecured funding options, tailored to meet the specific requirements of borrowers. One attractive funding option for MSMEs is the CGTMSE loan, which now offers an extended credit limit of up to Rs 5 crore. Apply Now

Managing Cash Flow with Bill Discounting Effective Cash Flow management with Bill Discounting offers a strategic advantage for businesses seeking to enhance their liquidity. As a result, instead of waiting for customer payments, your business can access funds immediately by exchanging approved invoices with a financial institution. Consequently, this provides a significant boost to your working capital. Understanding Bill Discounting Facility The bill discounting facility allows you to receive an advance against outstanding invoices. Essentially, you sell your invoices at a discount to a lender, who then collects the full amount from your customer at the agreed-upon payment date. This immediate access to funds can be crucial for seizing growth opportunities or managing operational expenses. In other words, bill discounting can be a valuable tool for businesses to improve their cash flow. There are primarily two types to consider: vendor bill discounting, where suppliers discount invoices issued to buyers, and purchase bill discounting, which, while less common under this specific term, broadly refers to financing solutions linked to payables. A Simplified Approach to Managing Cash Flow When a buyer buys assets or goods from the seller, the amount is usually made through a letter of credit. The credit time may vary from 30 days to 120 days. Depending upon the creditworthiness of the buyer, the bank discounts the amount that is required to be paid at the end of the credit period. Bill Discounting is also known as Invoice Discounting. It means that the bank will charge the interest amount during the credit period as an advance from the buyer’s account. After that, the bill amount is paid at the end of the period. So, concerning the agreed-upon document between the buyer and seller. Procedure to Avail Bill Discounting Facility Bill discounting is common in business and involves a simple process to release funds to the seller promptly. Steps in bill discounting: Seller and buyer contract to sell goods or services. The seller invoices the buyer for the goods sold. Buyer accepts the invoice and agrees to pay the dues. Seller approaches their bank or lender for bill discounting. The lender confirms the transaction’s authenticity and the buyer’s creditworthiness before issuing funds to the seller. At the bill’s maturity, the lender or seller’s bank presents the bill to the buyer for payment. The seller or banker collects payments from the buyer. The seller reimburses the bank promptly. The arrangement involves credit repaid at the loan term’s end. Learn the Bill Discounting process from the case study. Features of Bill Discounting 1. Evaluation of creditworthiness The bankers or financial companies involved will look into the creditworthiness of the buyer as well as the authenticity of the seller before starting into the bill discounting transaction with both parties. This ensures that the risk of bad debt or swindling is greatly reduced. 2. Preferred Banking Partner The banking parties concerned in bill discounting transactions are ordinarily bigger, reputed, and recognized names in the banking industry. This assures the feasibility of the transaction at the time of maturity of the invoice. Or the authenticity of the paying party. Also, a bank prefers the buyer to have a long reputation relationship. Because this assures the creditworthiness of the buyer. 3. Inter-Bank Dealing The bill discounting model includes interbank dealings. The discounting terms have been explained and agreed upon by the buyer and seller’s bank without their direct involvement. 4. Usance Bill The term of validity within the date of time sanctioned by customs for the bill date and the payment date existence is ordinarily known as the usance period. It means that the bill has to be viable at the period of maturity or payment time. Bill Discounting Methods 1. Recourse In this method, the examination of all the documents is on the seller’s bank. After a thorough investigation, they send the same for checking to the buyer’s bank. Here, the seller or the seller’s bank is responsible for any mishap in the whole process. 2. Non-recourse This method is contrary to the previous one. Thus, the buyer’s bank examines the documents and raises a bill against the seller. The buyer here will be held responsible for any default in bill discounting. Why Bill Discounting? Cash Flow management with Bill Discounting is an excellent solution for your working capital needs. If you are experiencing fatigue or struggling to obtain credit limits from banks due to a lack of security or cumbersome processes, bill discounting can help. When buyers request extended credit periods, agreeing to these terms can lead to a cash crisis, hindering your ability to fulfil export orders and limiting your resources and finances. A speedy and collateral-free working capital solution like bill discounting can significantly support your growing export business. It enhances cash flow, which is essential for any expanding export business. How Terkar Capital can help you? In conclusion, Cash Flow management with Bill Discounting is a powerful tool for financial decision-makers. Therefore, by leveraging the bill discounting facility and understanding the bill discounting process, businesses can significantly improve their cash flow, optimize working capital, and achieve greater financial flexibility. Furthermore, exploring options like vendor bill discounting can further refine your financial strategies. We at Terkar Capital, facilitate bill discounting to empower your business’s growth. Contact us now to learn more about how we can support your financial goals. The process to avail Bill Discounting FAQs on Bill Discounting 1. Is Bill discounting a type of loan? It is a type of invoice financing where the borrower gets the loan against unpaid bills. Thus, In simple words, they are short-term business loans. 2. How is the interest calculated? The interest calculation is as per the terms of the lending bank or financial institution. It considers the credit period or the tenure of the bill. That may be 30 days, 60 days, 90 days, etc. as the case may be. 3. Who provides Bill discounting services? Generally, banks provide this service. But nowadays NBFCs or Financial Institutions also offer these services. It