Machinery Loan Case Study

Let's understand the process of machinery finance

David runs a plastic manufacturing plant called ‘Perfect Plastics Private Limited’. He has been in the business since 2015. The turnover of David’s company is 37 crores for the last financial year. The company is rapidly growing over a period of time. He has now approached by a large multinational company for a big deal. If this deal goes through, David’s company will earn major profits. Till date whatever has been earned in the business, David has reinvested it into the business. 

But the foreign company wants David to buy some advanced machinery to increase the productivity of his plant. This machinery will improve his business significantly. Thus, produce high-quality outputs as well. The machine will also save a significant amount of cost, time and energy while generating profit.

Highlights

Company TurnoverRs. 37 Cr.
Amount Required for MachineryRs. 7.5 Cr.
Mortgage AvailabilityNo Mortgage
Company IndustryPlastic Manufacturing

About Machinery Financing

This is a German Machine. This machinery is very expensive and David is thinking about how he can fund the machinery. The machinery which David needs for his company costs 7.5 crores (Including GST and installation). If he doesn’t purchase the machine, the deal may not go through as a bigger company is already trying to get the deal.  

David’s company has a good CIBIL rating as they have a good credit history. The company also has a steady and genuine cash flow which can be reflected from the company accounts. Unfortunately, David does not have any asset or property which he can keep as collateral with the financial institution. Thus, he realises that he would require a machinery loan without security. While analysing further, David realises that he will need a unsecured loan for machinery. The purchase is for at least 5 years at a moderate interest rate. He has good cash flow, but he cannot pull the money from the existing cash flow as this will directly affect the existing working capital and the customers delivery. 

David is now worried and is looking after machinery finance without security. So, while researching financial consulting firms, he came across Terkar Capital. They are one of the leading Corporate Debt Consulting firms in India. He approached Terkar Capital and we set up a meeting with him.

Analysis

Business Commencement Year2015
Amount Disbursed For MachineRs. 7.5 Cr.
Total Execution Time7 Working Days.
Customer Service Experience4.3/5

How Terkar Capital assist to get machinery loan without security?

Our executives understood David’s requirements. We analyzed the case in detail. After the analysis, we recommended him to take Machinery Loan for his business. Instead of going for any other unsecured term loan. A machinery loan without security is a term loan for machinery. It is taken for purchasing machinery. It enables small and medium scale enterprises to afford tools and other equipment for their use. The better is your machinery, the better is the productivity. Hence the efficiency of a company. 

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The Process

We understand the requirements.  Once received all the required inputs from the company, we prepare a proposal for machinery loan. That contains information about the company. The machinery they plan on purchasing, the amount of funding required and other. This machine is being made in Germany so we had to make the payment to Germany. We took note of all the required inputs to execute the proposal.  Thus start the execution. The machinery finance providers sanctioned within 3 days from receipt of all the documents!! 

Learn how to Acquire machinery finance in India?

Approval on Machinery Finance

David, thus, received the machinery finance, 7 days after he approaches us. Now he has almost successfully completed 10 EMIs. Thus, the bottom line and the top line of the company both are in strong positions. Since then, we have been preferred as a corporate debt fundraising partner for Mr David and his company. So whenever Perfect Plastics Private Limited requires debt funding, they just give a call and rest is taken care of by our experts. 

Terkar Capital is one of the best Corporate Debt Raising Consulting firm in India. We are the leading machinery finance companies in India. We make sure that our clients receive the best deals in the market for plant and machinery loan. At Terkar Capital, we execute the end to end process for raising the debt.  We will make sure that your funding is processed as fast as possible. Get a machinery loan without security at Terkar Capital. Contact us today.

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