Disclaimer: Official communication is sent only via emails from @terkarcapital.com; Please note that we do not offer digital lending nor do we charge any advance fees.
Disclaimer: Official communication is sent only via emails from @terkarcapital.com; Please note that we do not offer digital lending nor do we charge any advance fees.
India’s ascent toward becoming a global superpower is driven by three critical pillars – a youthful population, rising per capita income, and significant advancements in infrastructure. A well-known economic principle states that wherever infrastructure, such as roads, is built, development inevitably follows.
This is especially true in Pune, where robust infrastructure facilitates smoother, faster movement of goods, contributing to business efficiency. Timely product and service delivery is vital for any enterprise, and infrastructure funding plays an indispensable role in ensuring that Pune’s development continues at a rapid pace.
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.
In the infrastructure sector, industries in Pune face unique funding needs compared to other industries. With milestone-based payments and large project costs, both public and private undertakings require substantial financing. Infrastructure funding is crucial to meet these high 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.
Multiple factors need to be considered while raising funds for the infrastructure companies in Pune. Below are a few of them:
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.
The length of the infrastructure funding process is determined by the availability of documentation. Here’s the list:
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, we place our clients at the heart of our process. We thoroughly assess your financial structure, including balance sheets, work orders, and the intended use of funds, to determine the most suitable debt instrument for your needs. We firmly believe that choosing the right financing option is key to securing the lowest possible cost of capital, particularly in the realm of infrastructure funding in Pune.
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Note: All formal communication is solely via designated official emails.
