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Foreign Currency Funding Process

Foreign Currency Funding Process

David owns a food import-export business called ‘Fresh Foods Private Limited. His company exports various food products to different countries in the world. That includes the US, Europe, Canada, and so on. David started his business in the year 2014 and his business has grown rapidly since then. Thus, 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 analyzing various factors, he realizes that the packaging material to be used for this order should have to 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 and the order size is extensively high. So, the amount required to justify this order is around Rs. 11 crores.

Thus, David is thinking to take 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. So, 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. So, while searching for foreign currency financing services, he came across Terkar Capital. He approached one of our representatives and we set up a meeting with him on the foreign currency funding process.

Financial Snapshots:

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

Financial Analysis

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

Financial Institutions provide foreign currency financing. In this, one can borrow the amount of the loan in a foreign currency and repay the loan in that foreign currency too. For David, a foreign currency term loan is, therefore, a perfect fit. In foreign currency financing, the rate of interest charged by the financial institutions is lower 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 around 6 days after 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 Terkar Capital’s foreign currency funding process. So, whenever he requires any financial advisory or consulting services, he just drops a message to Terkar Capital and we get the work done!! Thus, we are the preferred debt partner for Fresh Foods Private Limited.


Business Commencement Year 2014
Amount of FundingRs.11 Crores
Total Execution Time6 Working Days. 
Best Rate of Interest In the Indian Market9.1%
Rate of Interest we offeredLIBOR + 1.5%
Customer Service Experience 4.4/5

Foreign Currency Funding Process at Terkar Capital

Terkar Capital provides the best services for foreign currency funding 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 other services. We assist in executing the whole process required to get the funds. So, Right from understanding the requirement to the disbursement of the desired amount, we will assist throughout. We explain the entire process to the client and assist him every step of the way. If you are looking for foreign currency financing, Terkar Capital is the place to be!!


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