Businesses require funding for several reasons. Be it for business expansion, starting a plant, buying machinery, or anything else. Sometimes the requirement might be so large that a single lender or bank will not be able to provide for themselves. So, what do you do in such a situation? Well, this is where debt syndication loans come into the picture. Thus, by allowing multiple lenders to provide sections of the entire loan amount, it allows you to obtain large amounts of funds. Avail debt syndication in India
Although the exact documentation will depend on the requirements of the syndicate agent, the following are the general documents you will require:
Understand the process of Debt Syndication from case study.
Debt syndication simply helps businesses to acquire a large number of loans. Generally by accumulating different amounts from multiple lenders instead of one lender. A leading syndicate firm manages this structured product. Large businesses used debt syndication services earlier. But today even SMEs require large funding. With an increasing number of enterprises in India, the need for large amounts of funds is only likely to grow.
India is a booming economy. With several businesses coming up and the youth focusing on starting enterprises, the requirement for funding is inevitable. The growth is so fast that the funds may be needed in large amounts. The first solution that comes to mind in such a solution is equity funding. However, there is a problem with equity. The ownership of the company diluted the investors, leading to the decreasing claim of the founders of the company. This is where the need for debt syndication is essential.
Debt syndication allows businesses to acquire funding without having to give up on their claim to their own company.
Another reason to get a debt syndication loan is that in normal loans a lender can only provide a certain amount to a borrower depending on their capabilities and other factors. In cases where the funding required is beyond this limit, the syndicate firm arranges multiple lenders. Each of the lenders provides portions of the loan amount.
Eg:- Your company requires 50 crores. And none of the lenders can lend that amount alone. Then a debt syndicate company can acquire you 10 crores from lender A, 20 crores from lender B, 10 crores from lender C, and so on.
Debt syndication comes with numerous benefits which are why several companies are preferring this category to finance their business. Here are some of the features and benefits of the debt syndication facility.
If you’re confused about how to get a loan through debt syndication, here’s how the process of debt syndication works:
The following are the common eligibility criteria required to get a debt syndication loan. However, based on the lending financial institutions or banks, there may be additional eligibility requirements.
If you’re looking for effortless and trustworthy debt syndication in India, Terkar Capital is the best place for you. As one of the top debt syndication companies in India, we provide expert analysis of the product and we choose the right lenders for the syndication. We also boast of quick turnaround time and provide timely and optimum availability of funds. Our expert team will provide you with the complete and perfect end-to-end execution of the syndicate process.