Letter of credit discounting To ensure the smooth running of your business operations daily, it is crucial to have sufficient working capital. This means that your company may need to consider obtaining loans, either in the short-term or long-term. In the past, all the loans obtained were secured, but now we have a range of options, including both secured and unsecured loans. Let’s focus on one particular working capital instrument called Letter of Credit (LC) discounting. Overview A banker issues the letter of credit as a financial document. In this Bank gives a guarantee to pay the seller for the buyer’s obligation, In case a buyer fails to make the payment. Hence, LC discounting takes away the risk. LC gives assurance to the seller of the funds. It is an unsecured debt product used in international trade. Mainly where the buyer and seller are unknown and have to risk in a transaction between each other. There is involvement of major 4 parties in such a transaction. Namely: Exporter, Exporter’s Bank, Importer, and Importer’s Bank. A buyer and seller both request LC. So, both of them mutually decide the terms and conditions. Features of LC discounting It speeds up cash flow and improves working capital management. It mitigates transaction risk and assures both parties. The LC is discounted once the buyer’s payment is verified. LC is available for both domestic and international customers but is primarily used in international transactions. Strong relationships between exporters and importers facilitate smooth LC discounting operations. Following are the benefits to the parties. A Seller gets immediate cash flow for his business. A buyer gets a credit period for making payments. The bank receives interest for the said services. Letter of credit discounting Process In the case of a manufacturing or trading company, the sellers may require funds immediately. He cannot wait for the due date. So, in such a case, LC Discounting plays a major role in assistance to the eligible sellers. Here’s a general process: Buyers on demand from the seller request a Letter of credit (LC) from the respective banks before the shipment of goods. And send the same to the seller/exporter bank. The exporter bank checks the document and communicates the acceptance to the seller. The exporter receives the Letter of Credit and requests it for discounts. Hence, the bank discounts the LC after deducting the charges or discounting fees. The exporter gets the money and uses the same for his business expenses. Learn the process of LC discounting from the case study. Example Let us suppose that “ABC Private Ltd” company engaged in manufacturing situated in India. The company receives an order of goods from a foreign country “XYZ Private Ltd”. It is asking for a credit period of 60 days for the payments of goods. Being unknown to each other, “ABC Pvt Ltd” demands a Letter of Credit from “XYZ Pvt Ltd”. It sends it for confirmation to “ABC Pvt Ltd”. It will check the letter and accept it. And can discount the same. Thus, by discounting the LC, the seller will get immediate cash flow. So, he does not have to wait till the end of the credit period. LC discounting at Terkar Capital Terkar Capital facilitate a letter of credit discounting. This financial instrument provides working capital to businesses without the need for collateral. In a letter of credit discounting, a bank issues a guarantee to pay the seller if the buyer fails to make the payment. This reduces the risk for both parties involved in international trade transactions. LC discounting improves cash flow and working capital management for businesses while ensuring a smooth transaction process. Both domestic and international customers can benefit from letters of credit, and it helps build a strong relationship between exporters and importers. FAQs on Letter of Credit Discounting 1. Can businesses transfer a letter of credit? Yes, a letter of credit can be transferred. There is a special kind of LC which is called a transferable letter of credit. It includes a transferrable provision. Transferable LC additionally allows the first beneficiary to transfer some or all of the credit to another party, which creates a secondary beneficiary. 2. Is a letter of credit discounting safe? A Letter of credit is one of the safest options and is most commonly used in domestic and international business transactions. In fact, the exporter or importer, who are unknown to each other from different locations at such times the buyer’s creditworthiness can be checked through LC. So, it is a safe and widely used working capital instrument. 3. Can a letter of credit be canceled? There are various types of LC, depending upon which can or cannot be cancelled. For example: A revocable letter of credit can be cancelled or amended by the issuing bank at any time and without prior notice to or consent of the beneficiary. An Irrevocable Letter of Credit cannot be cancelled or amended without the consent of all parties concerned. 4. How does a letter of credit discounting work? A letter of credit is a letter issued by a bank guaranteeing that the seller will receive the payment from the buyer on time with a given amount and in case the buyer fails to make the payment, the bank will be paying the amount to the seller. So, it works like a trust factor between importer and exporter. 5. Who can issue a letter of credit? Issuing bank (importer’s bank) which issues the LC when an applicant (importer) requests the bank to issue the LC. Generally, LC with a well-rated bank is accepted. 6. What is the expiry date of the letter of credit? The last date to submit the exported documents with the bank for negotiation of documents is called LC expiry. Here, the exporter needs to submit all required documents with the bank after export as per the guidelines mentioned in the letter of credit. This means if shipped goods before the date mentioned in LC for shipment, the Letter of

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 a period of 12 months. It has 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 Loan Overview Running an industry leads to a lot of complications. Be that 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 major 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 Loans for IT Companies Having no assets as collateral, IT industries have to opt for unsecured funding. Unsecured loans get finance where collateral security is absent. The loan is provided based on the credit score of the borrower. Such a loan can be taken to overcome their short or long-term inconsistency in the operation. The Rate of Interest is comparatively high because of the absence of collateral. But Terkar Capital will arrange a reasonable cost of borrowing for you! 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: Only creditworthy borrowers grant Unsecured loans. That is according to their CIBIL score. Many lenders require a score of 750. A score between 650 to 750 is considered favourable. Companies with low CIBIL scores face huge issues with this loan. Another criterion is that the borrower company must have a specific turnover for applying for unsecured funding. That varies according to the set criteria of different lending institutions. 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 Adequate funding is essential for companies to operate the business and achieve growth. Under these circumstances, Terkar Capital’s financial products can be a quick solution to all the problems.  At Terkar Capital convenient and collateral-free funds can be used to address the urgent needs of finance and grow your business. So without having any second thoughts, approach Terkar Capital for both debt and equity funding solutions! We assist in raising unsecured business funds for the IT industry.

Trade Finance Company All emerging businesses need a strong financial backbone to run efficiently. However, Many times, due to the lack of working capital, the business operation faces a downfall in its operations. That ultimately affects the whole functioning. While trading or dealing domestically or across borders, there are several necessary factors involved. Right from purchasing or manufacturing the product till receiving the final payment. Trade finance companies aid businesses in both domestic and international markets by providing essential funds to tackle challenges and navigate complexities. These firms help manage risks associated with cross-border transactions efficiently. What is Trade Finance? Trade Finance provides the necessary financing for managing cash flows involved in domestic and international market transactions. It serves as a valuable tool for mitigating risks associated with cross-border trade. In such transactions, it is common for both the seller and buyer to be unfamiliar with each other, creating uncertainty and potential risks. So, Questions arise: Will the buyer fulfil their payment obligations on time? Can we trust them to make the required payments? Fortunately, Trade Finance offers a solution to these concerns, providing the necessary assistance and ensuring smoother and more secure transactions. There is the involvement of two parties in a trade transaction: (1) exporter who requires payment for their goods or services, and (2) importer who wants to make sure they are paying correctly according to the quality and quantity of goods or services provided by the exporter. 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. Process in the Trade Finance Company 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: 2. Buyer: 3. Funder: 4. Supplier/Manufacturer: 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 2. Letter of Credit (LC) 3. Bank Guarantee 1. Factoring 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 Trade finance is the financing for undertaking trade to the clients working at the domestic as well as international level. The process is complicated, but we at Terkar Capital make it convenient for our clients. As a leading trade finance company headquartered in Pune, with a corporate office at Mumbai BKC. However, we operate in almost all major cities in India. At Terkar Capital, we arrange several options in both debt and equity funding. We analyze all the aspects of the business and then suggest appropriate products according to the financials. Our reliable and efficient process sets us apart from other trade finance companies.

Factoring Funding Can Free Up 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 creditworthiness of the customer 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 the Cash Flow Gap with Factoring Funding While running a business, there might arise the need for immediate cash flows for managing working capital finances like paying utility bills or dues, etc. There can be a situation where the seller has sold the goods on credit to the buyer. The buyer promises to pay the money after a specified credit period. In such a case the buyer’s money gets locked in for a particular period. So, he is in lacks funds to proceed with further orders. To avoid this crunch, there is a financial instrument available in the market where sellers can raise finance using these accounts receivable which is called Factoring Funding. Benefits of Factoring Funding 1. Instant access to cash flow The factoring process is quick 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

Bill Discounting in Business Cash Flow Management In bill discounting, an invoice or bill is exchanged with a preferred lender of the invoice recipient to obtain a portion of the amount due, rather than receiving the full payment. The lender charges a percentage of fees for this service, effectively offering a discounted rate on the bill. Banks or money lenders provide this service and earn a percentage of the fees. This allows the beneficiary to receive the bill’s dues immediately, eliminating the need to wait until the end of the credit period. The discounted invoices in this process are known as bills of exchange. Recipients of the invoices have access to this type of loan, but it must be repaid if the bank or money lender is unable to collect the full amount of the bill from the buyer at maturity or the end of the credit period. Managing Cash Flow with Bill Discounting Bill discounting is a widely general practice in the business world. It enables the business to get immediate release of funds. Even though the credit period for the bills or the due date for the payment of the bills or the invoices is later. Thus, the facility can be performed at any bank or financial institution by the beneficiary of the bill. 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. 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. 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. Understand the Bill Discounting process from the case study. 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? Terkar Capital offers collateral-free loans to MSMEs through bill discounting. This practice allows businesses to receive immediate funds by exchanging invoices at a preferred lender. It helps overcome challenges such as obtaining credit limits, longer credit periods requested by buyers, and the lack of resources for fulfilling export orders. The bill discounting process is simple and fast, ensuring prompt release of funds to the seller while allowing repayment at the end of the loan period. 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

Unsecured Business Loan FAQs Unsecured business loans can be a great financing option for businesses that need capital but don’t have collateral to offer. Here are some frequently asked questions to help you understand them better: 1. What is the difference between Secured and Unsecured Funding? The major difference in both is related to the collateral. An unsecured loan is a business loan with no collateral. There is the absence of collateral and the whole process depends upon the creditworthiness of the borrower. Here the ROI is high but the process is fast. Whereas in secured loans collateral-based loans are provided which puts the lenders on the safer end of non-payment of the amount. 2. Why is CIBIL score important for Unsecured Business Funding? CIBIL is the credit checking score of the borrower with the bank about his repayment capacity. The good credit score of the borrower helps easy disbursement of the loan. Also, an unsecured loan provides finance without collateral hence, the CIBIL score is of utmost importance to check whether the borrower has a creditworthy relationship with the bank and the capacity to pay the loan in the mentioned period. 3. Who all can apply for Unsecured Debt? The businesses or professionals (CA, Doctor, Architect etc.) that do not have any assets as collateral can go for unsecured funding. The need for such a loan can be related to paying the dues, expansion, reconstruction, and many more. The MSMEs can be more benefited by unsecured loans as the government has established many schemes for the same. 4. How much amount can be raised in unsecured funding? There are no such fixed criteria upon the raising of finance of unsecured loans. Many lenders provide amounts up to 25 lakhs. At Terkar Capital we can raise unsecured funding to 15 Cr as per the borrower’s requirement. 5. What are unsecured business loan interest rates? The RoI is dynamic and hence changes according to the market segments. So there are no fixed criteria based on ROI. However, the rate of interest at Terkar Capital starts at 14% Pa (Depending upon the financial ratios). 6. What is the maximum amount of unsecured loan can I get? It is an unsecured loan, most financial institutions don’t take loan exposure of more than Rs. 50 lacs. At Terkar Capital you can get a credit exposure up to 15 Cr. However, the turnover and profitability of your business are a few of the major factors to decide the exposure taken by financial institutions. 7. How much time does it take to get the UBL? An unsecured loan is also known as a quick business loan. This is because the turnaround time to get the funds in your accounts will be as low as 7 working days. Within 7 working days, you will get your loan disbursed. 8. What is the tenure of the unsecured loan? An unsecured loan is given for a maximum of 3-5 years. Your financials and future business can be a few of the factors that may help you to extend a couple of months for the repayment. 9. How should I repay that loan? An unsecured business loan is as good as any other loan. Here you can make the repayment in Equated Monthly Installment and can arrange through ECS. 10. Can UBL be available for Small Business Financing? Yes. Even small business owners also get unsecured business funding. 11. Where can we apply for unsecured loans? There are several Financial Institutions, NBFCs, and banks that work for providing unsecured loans in India. One has to have a proper direction to search for. Terkar Capital is the ideal platform that can provide you with opportunities for both debt and equity funding. 12. How to get an Unsecured Business Loan? Since this is the modern time, many NBFCs and financial institutions receive applications through online mediums. It has made the unsecured business funding procedure cost a lesser amount of time. Check out the steps: Step 1 The first step is checking the eligibility criteria. If the business meets the unsecured business funding requirements and is eligible to obtain the loan. Step 2 Preparing the application is the next step. A well-written application with all the sufficient required details. That includes asset count, the company’s track record, etc. Why is this loan being obtained? Things like these have to be mentioned in the application. Step 3 If you use an online medium, then the documents are uploaded online. Presenting documents, softcopies or hardcopies is the third step to obtaining an unsecured business loan in India and overall. Step 4 Get the funds. You can receive funds after the former step. Thus, now you are enabled to address the financial difficulties your firm is facing. 13. How does Terkar Capital helps? Being one of the most modernized and highly specialized finance facilitators in India, we understand the requirement and the urgency of the funds for your business. Terkar Capital always tries harder to arrange the best financial services for all our customers and make the process convenient. Unsecured funding is one of our best services and our team of experts helps effortlessly to arrange all the possible outcomes to make the process hassle-free. 14. What are the types of services we provide in unsecured funding? Here is the list of a few of our Unsecured Instruments: Loan under the CGTMSE scheme Working Capital Loan Trade Finance Factoring Bill Discounting LC Discounting Bank Guarantee Check out the unsecured debt products we facilitate.

Unsecured Funding for Business In the field of business and the pursuit of business growth, financial limitations present a challenge. However, insufficient funds or the lack of collateral for securing funding should not deter your hopes of seeing your valuable enterprise reach new heights. As a business owner, you know that securing funding is crucial for growth and success. While traditional bank loans may seem like the go-to option, they can be difficult to obtain, especially if you’re a small business. So, this is where unsecured business funding lends a hand. With this type of financing, you can access the funds you need without risking your assets. Unsecured funding is a highly convenient method for obtaining business funding without the need for collateral, unlike secured debt funding. Even unsecured funding is favored over others given the ease in the process of acquiring it. Unsecured Business Funding for Startup Businesses Just like any other business loan, unsecured funding has been granted to the business owners for reconstruction. It also includes expansion of the existing enterprise or starting up a new business endeavour. So, the very reason why this loan is preferred by entrepreneurs is that obtaining it doesn’t necessarily require you to have collateral. Unsecured funding for a startup can be procured quite easily as well. It covers the unplanned financial needs of the business that you have applied for the loan. Learn from the Guide to Getting Unsecured Funding here. Lets take Sarah’s Case study Sarah is a small business owner who runs a boutique bakery. Sarah has a great business plan, but she’s struggling to keep up with the demand for her delicious cupcakes. She needs funding to purchase more equipment, hire additional staff, and further expansion of her bakery, and she doesn’t want to risk her assets as collateral. That’s where unsecured business funding comes in. By accessing funds without collateral, Sarah can grow her business while keeping her assets safe. Where to get Unsecured Business Funding? Starting a business is never easy, especially when it comes to securing the funding you need to make it a success. In India, numerous lenders are offering unsecured business loans. Normally, they are government or corporate banks and private financial institutions. But it is difficult to find one that truly meets your needs. That’s where Terkar Capital comes in. At Terkar Capital, we understand the challenges that business owners face, which is why we prioritize our client’s requirements above all else. Unlike other lenders, we offer a quick and hassle-free loan processing and sanctioning process, so you can get the funds you need without any unnecessary delays or complications. Here’s the Process What does the loan market say? According to market statistics, the demand for unsecured business finance is on the rise in India. In fact, the report says, unsecured loans grew at a faster pace than secured loans, indicating an increase in demand for such loans. But apart from numbers and statistics, unsecured business funding is for real businesses with genuine needs. In conclusion Unsecured business funding can be a valuable option for startups or businesses looking to grow and succeed. With the current market trends towards alternative lenders and flexible financing options, it’s worth considering as a viable option for your business. And for small business owners, it can be the difference between struggling to keep up and thriving in a competitive market. At Terkar Capital, we are glad to work with businesses of all sizes to achieve their goals by providing reliable, affordable, and hassle-free unsecured business funding. Contact us today to learn more about how we can help your business succeed. Learn more on Unsecured Debt here.