We bring you specialized infrastructure funding solutions tailored for India’s growing needs. Our financing empowers businesses to develop and expand critical infrastructure projects seamlessly.
India has the potential to become a global superpower, supported by 3 major pillars helping it. One is the young population, the second is Growing Per Capita Income, and the third is the improved infrastructure. There is a general assumption about the economy. Whenever and wherever you build the road, the development follows it. This is because infrastructure, including roads, helps the goods to move better and faster. And the easy availability of goods and services helps to ease the business operation. In any business, the delivery of products and services is of utmost importance, and hence infrastructure funding plays a crucial role in this development.
Starts from Rs. 100 lacs with no upper limit
Interest Rates Subject to the financial ratio
Smooth Processing
Simple terms and less paperwork
Flexible Loan repayment (up to 60 Months)
Infrastructure is not limited to roads and bridges. It includes many other areas and industries. Below are a few of them –
All the companies that are directly or indirectly associated with these industries become part of the Infrastructure Industry.
When a company works in the infrastructure industry the working capital requirement varies from other sectors or manufacturing industries. There are two types of customer base – Public and Private undertakings. The requirement of the funds varies as per the customer. Generally, the payments in this industry are milestone basis. And the project cost stands high. As the project cost is high, the requirement of the funds also stands high.
The government is the biggest customer. It can float the tender directly or through a public entity. If it is government funding, the company may majorly need the working capital in the form of a Bank Guarantee, which forms part of the non-fund-based limit. At the time of taking the order from the government, the company needs to submit the BG and the government will start releasing the payment on a milestone basis.
The working capital cycle changes when the company is working with private companies. Here generally you do not need to submit the bank guarantee. You will need the CC facility or OD Facility to procure the material and pay for your labour. Generally, the payment gets released based on the milestones and is typically paid within 30-90 / 120 days as per the payment terms.
When comparing India and China in the manufacturing industry, China’s significantly shorter product delivery times stand out. This efficiency is largely due to China’s well-developed infrastructure, which not only reduces delivery time but also lowers material costs. Additionally, shorter delivery times allow manufacturers to maintain minimal inventory levels. Some Indian companies are now adopting a zero-inventory model, a shift made possible by improvements in infrastructure.
Multiple factors need to be considered while raising funds for the infrastructure companies. Below are a few of the standard debt instruments. However, getting tailor-made instruments is preferred.
1. Bank Guarantee
2. Cash Credit
3. Overdraft
4. Vendor Financing
5. Sales Invoice Discounting
6. Working Capital Term Loan
7. Working Capital Demand Loan
8. Dropline Overdraft.
There are different debt instruments. Each instrument has its criteria for raising the funds. Below are a few of the most important and preferred criteria –
1. Minimum 3 years of business vintage
2. Good Credit score
3. Your operational location
4. Your last year’s sales and profit
5. Current Year Sales
6. Current work order in hands
7. Existing debt of the company and regular repayments
8. Indian Shareholding.
These are the few most important criteria. And others may vary from company to company.
If you use short-term funds for long-term uses and long-term funds for the short uses, both will harm your working capital. Choosing the right product for the right work order is important.
At Terkar Capital, We always keep the client as a central part of the execution. We understand the client, know the balance sheet, work orders, and end use of the funds and then decide which debt instrument will be a better fit for you. We always believe that to achieve the lower cost of funds, the choice of the right debt instrument is very important.
Nashik | Nagpur | Chhatrapati Sambhaji Nagar | Hyderabad
Delhi | Bengaluru | Chennai | Kolkata | Ahmedabad | Surat
Growing Nationwide…
