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Lease Rental Discounting Funding Process

LRD Funding Process

Mr. Jacod has been a proprietary firm for the last 20 years. Jacob recently gave his premises on lease for 5 years to the vast and renowned cotton clothing brand. His turnover for the previous year is Rs. 1.4 Cr. As his business is growing, the resources of proprietary concern stand short for him, and need funds for expansion. He decides to convert his proprietary concern into a Private company that will make huge profits. Jacob thinks from which sources the funds will be managed. Having no collateral, it was difficult for him to get funding.

Jacob had all the ideas ready for expanding the business but what hampered him was his issue with funds. He consulted many people and the financial institution, but to no avail! Everyone was asking for collateral for loans. While going through the Internet, he came across Terkar Capital. And visited our website. He soon contacted our team and the meeting was immediately fixed.

LRD process

Jacob was worried about his problems with funds and started telling us his requirements. Our team understood his needs, and we asked him about the financials. After analyzing all the documents and areas of his business, we realized a strong point that Jacob owns premises that he has given on lease for 5 years. Our team studied the areas related to property and came to the conclusion that Mr. Jacob can go for Lease Rental Discounting. We suggested Jacob, LRD, which is one of the convenient sources of funding. Also, the tenant or a lessee was a renowned brand in clothing.

What is LRD Funding?

LRD is a term loan that is provided to the borrower based on their income from the rented property. A major aspect that affects the LRD Funding process is the availability of rent receipts from the tenants. The tenant or the lessee here should be a renowned brand or corporate, etc.

Learn in detail about what is LRD Loan.

Furthermore, we undertook the valuation of the property and rental receipts and came to the conclusion that Lease Rental Discounting would best suit the client according to his financials. The funding went to the lending institution for sanction, and soon the funds were released to the borrower. The process was carried out smoothly by our team members and the funds were received by Jacob, which solved his issue for expansion. The ROI given was also reasonable. Jacob was delighted by our service and started his successful journey.

Business Inputs

Nature of Business Proprietary concern
Turnover of last yearRs. 1.4 Cr
Mortgage Available Rented/Lease property
Valuation of Property(Market Value)Rs. 12 Crores
Rental Receipts of 5 years (Lease Receipts)Rs. 60,00,000
Need for fundsBusiness Expansion

LRD Funding Process at Terkar Capital

Terkar Capital is one of the leading financial institutions in India. We provide the best product to clients after studying all the aspects of their financials, CIBIL report, business, industry, sales, etc. We arrange all the conventional and non-conventional debt and equity funding solutions for our clients in a few days. The LRD service is one of the financial instruments from our variety of products. So whenever it is raising funds, Terkar Capital is there for you!!

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