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’s journey towards becoming a global economic powerhouse is supported by three key drivers – youthful population, per capita income, and substantial infrastructure development. The well-established economic principle that infrastructure development fosters overall growth is particularly evident in Mumbai.
In Mumbai, enhanced infrastructure such as roads, ports, and public transit serves as the backbone for efficient business operations. It enables the swift movement of goods and services, thereby boosting operational efficiency for enterprises. Infrastructure funding in Mumbai plays a crucial role in sustaining this momentum, ensuring the city’s rapid development and reinforcing its position as a vital economic hub.
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 extends beyond roads and bridges, encompassing a broad range of areas and industries. Here are several notable categories:
All the companies that are directly or indirectly associated with these industries become part of the Infrastructure Industry.
Mumbai’s infrastructure industries have unique funding requirements due to milestone-based payments and high project costs, demanding substantial financing from public and private sources. Infrastructure funding is essential to meet capital demands and ensure project success.
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.
Raising funds for infrastructure companies in Mumbai requires careful consideration of several crucial factors. Here are a few key elements to keep in mind:
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. Here are the important and preferred eligibility 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 short-term uses, both will harm your working capital. Choosing the right product for the right work order is important.
At Terkar Capital, our client-centric approach ensures that we provide tailored financial solutions. For infrastructure funding in Mumbai, we conduct an in-depth analysis of your financial framework, including balance sheets, work orders, and the strategic deployment of funds. By identifying the most appropriate debt instruments, we are committed to optimizing your capital structure and securing the lowest cost of capital for your infrastructure projects.
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