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Infrastructure Funding

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.

Key Features of Infrastructure Funding

What Infrastructure Includes?

Infrastructure is not limited to roads and bridges. It includes many other areas and industries. Below are a few of them –

Recreation facilities
Telecommunications
Bridges
Power and Energy
Railways
Roadways
Water
Waste management
Aviation

All the companies that are directly or indirectly associated with these industries become part of the Infrastructure Industry.

Working Capital Needs in 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.

a) When the company is working with the Government

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.

b) When the company is working with Private Companies

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.

Impact of Infrastructure Funding

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.

Debt Instruments for Infrastructure Companies

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.

Documents Required for Infrastructure Funding

Aadhar card
PAN card
Driving license
Voter ID
Passport, etc.

Ration Card
Electricity Bill
Lease Agreement
Trade License
Passport
Tax Invoices, etc.

Bank Statements
CIBIL
Business Bank statements
Asset Counts, etc.

Eligibility To Raise the Working Capital

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.

Infrastructure Funding at Terkar Capital

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.

How do we Execute?

Check your CIBIL score for free.

What sets us apart?

1. Fast Turnaround Time

We cordially track the deadlines and make our quality tangible, while executing finance projects well ahead of time.

2. Confidentiality

At Terkar Capital, We comply with the highest professional confidentiality standards. All client information is discussed in strict confidentiality.

3. Competitive ROI

We find you the right lenders with similar terms and the lowest rate of interest.

4. Hassle-free Processing

Creating a stable ownership structure for financiers by establishing a secure transaction process.

5. High Level of Integrity

We are building our reputation through reliability, integrity, and honesty. We connect to our clients on personal grounds that include transparency and liability.

Client's Testimonial

What our clients think about us?

H Tamhankar

We are very thankful to Terkar Capital for your efforts in arranging facility. Their approach is very simple, professional, and fast! The team is highly responsive that executed the process in short span of time without any hassles. Great work... Thank you!

J Agwan

Terkar Capital is upright at delivering specialized funding needs. They implement what they state. Because of you, we're able to make our business reach an exponential level.

A Waghmare

Obliged for the services by Terkar Capital in helping secure funds for the business. They offer a broad range of advanced funding solutions and deliver financial solutions that are right for customers. Grateful for the services rendered by your firm.

C Sonawane

Thank you Terkar Capital for processing my business loan in just a few working days. Very professional & skilled team. They understood my requirements to a level that were beyond my expectations from any lending company. I strongly recommend Terkar Capital.

Infrastructure Funding

Key Features of Infrastructure Funding

What Infrastructure Includes?

Working Capital Needs in the Infrastructure Industry:

a) When the company is working with the Government

b) When the company is working with Private Companies

Impact of Infrastructure Funding

Debt Instruments for Infrastructure Companies

Documents Required for Infrastructure Funding

Identity Documents

Address Proofs

Financial Documents

Eligibility To Raise the Working Capital

Infrastructure Funding at Terkar Capital

How do we Execute?

What sets us apart?

1. Fast Turnaround Time

2. Confidentiality

3. Competitive ROI

4. Hassle-free Processing

5. High Level of Integrity

Client's Testimonial

What our clients think about us?

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Financial Instruments We Arrange

Financial Products

Resources

Terkar Capital

In Association with:

Head Office

Corporate Office

Branch Offices

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