Foreign Currency Funding

David owns a food import-export business called ‘Fresh Foods Private Limited’. His company exports various food products to different countries in the world including the US, Europe, Canada and so on. David had started his business in the year 2014 and his business has grown rapidly since then. The turnover of ‘Fresh Foods’ this year is Rs. 50 crores. 

Now David has been approached by a multinational company for a large order. This order is almost around 10% of his total sales. Due to the scale of the order, David does not want anything to go wrong. While analysing various factors, he realises that the packaging material to be used for this order should be a different one due to the nature of the products being exported. When that packaging material is bought on a large scale the cost per unit is very low about the order size is extensively high. The amount required to justify this order is around Rs. 11 crores. 

Thus, David is thinking of taking funding from a financial institution. If he takes the funding in rupees, which is very traditional, he has to deal with the Indian inflation rate and high cost of capital. This time while raising the funds, he is very much sure, he wants to arrange for the cheapest cost of capital. But David is still confused if any such facility is available for him in the market. While searching for foreign currency loans services, he came across Terkar Capital. He approached one of our representatives and we set up a meeting with him.

Company Turnover  Rs. 50 Crores
Amount Required  Rs.  11 Crores
Mortgage Availability  Residential Property and Commercial Property
Company Industry Food Import-Export Industry 

David spoke to us about his situation, requirements and expectations. After analysing his business scenarios, balance sheet, geographical operations, financial requirements and the funding options available, we suggested that the option of foreign currency loans is the best option for him. This is beaus

Foreign currency funding is a type of funding given by financial institutions when one can borrow the amount of the loan in a foreign currency and repay the loan in that foreign currency too. For David foreign currency term loan is, therefore, a perfect fit. On foreign currency funding, the rate of interest charged by the financial institutions is lower as compared to the loans taken in Rupees. The banks may charge a rate of LIBOR +  1-2%. While in other traditional loans the rate of interest will be around MCLR+1%. Comparatively, foreign currency funding is cheaper. 

International financing was very convenient for David. He received the foreign exchange funds in around 6 days from when he approached us. After he received the payment from the foreign client he started the repayment of foreign currency loans. David was very happy with the foreign currency lending services provided by Terkar Capital. Whenever he requires any financial advisory or consulting services, he just drops a message to Terkar Capital and we get the work done!  We are the most preferred debt partner for Fresh Foods Private Limited.

Business Commencement Year  2014
Amount of Funding Rs.11Crores
Total Execution Time 6 Working Days. 
Best Rate of Interest In Indian Market 9.1%
Rate of Interest we offered LIBOR + 1.5%
Customer Service Experience  4.4/5

Terkar Capital provides the best services for foreign currency loans in India. Our Subject Matter Experts at Terkar capital will assist you with the syndication of foreign currency lending, rate of interest negotiation, repayment plans and such other services. We assist in executing the whole process required to get the funds, right from understanding the requirement to the disbursement of the desired amount. We explain the entire process to the client and assist him every step of the way. If you are looking for foreign currency loans, Terkar Capital is the place to be!

For More Details Please contact our Experts

If you have any questions, please do not hesitate to ask us. Please also call us or email us before visiting to make sure that you will be served with our best services.

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