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Private Debt Funds

The banking system of any country is the major contributor to the Economy. Governments and Bankers always put the effort to carry out all the economic transactions through the banking system. The banking system works in a defined framework. And there are always some exceptions to the standard condition.

Private debt or Private Credit comes into the picture, where the business crosses certain operational limits and cannot fit with regular banking operations. Or there are certain scenarios of the business that bankers cannot fund. Private debt funding works in unconventional ways. Here are a few of the best conditions where and why alternative investments or Private Debt comes into the picture.

private debt fund

Key Features to Avail of Loan Against Property

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Provides Funding Faster

flexible repayment

Offers more Flexibility than Bank Loans

Execution

Tailored Solutions for Businesses

Corporate client

High Confidentiality

project report

They can offer tax benefits to businesses

Private Debt

The banking system of any country is the major contributor to the Economy. Governments and Bankers always put the effort to carry out all the economic transactions through the banking system. The banking system works in a defined framework. And there are always some exceptions to the standard condition.

Private debt or Private Credit comes into the picture, where the business crosses certain operational limits and cannot fit with regular banking operations. Or there are certain scenarios of the business that bankers cannot fund. Private debt funding works in unconventional ways.

Benefits of Private Debt Funds

1. Works under Government Regulations

Private Debt funds work internationally. So they are always very clear on government rules and regulations. All private debt players are RBI (Reserve Bank of India) and SEBI (Security Exchange Board of India) license holders. Lenders always make sure the funding does not violate any of the government or RBI norms. It is 100% safe and secure to borrow money.

2. Highly Flexible

Unlike the banking system, the norms in private debt are very much flexible. The solution can be arranged at the convenience of the client. There is no hard and fast structure to be followed. The amount can be arranged in term loan format or maybe in other required formats, the term can be flexible, the repayment structure can be flexible, and the EMI structure can be flexible. So, in short, all the possibilities can be arranged as long as it helps the business to grow.

3. Fast Execution

The turnaround time to execute the proposal under private debt is very short. This is because there are not many authority levels involved. The structure in the fund houses is very much flat. And the fund houses are very much aggressive about the funding.

4. High Exposure Amount

The private debt players work in international markets with high ticket sizes. So, there is no upper limit on the required amount. As long as the client matches the expectations and meets the fund houses’ criteria, there will not be any concern about the upper exposure limit. The fund houses can take exposure up to some thousand crores.

5. No Equity Dilution

The amount is lent in debt format. So there is no question of equity dilution. Lenders will be comfortable as long as they are getting paid for their interests and principles. However, there is always flexibility in the repayment of the debt. The lender may propose some equity. However, the terms and conditions are mutually agreed upon. Nothing goes forward unless it is mutually agreed upon by both parties.

6. Growth Hacking

When any private debt player infuses funds into any business, they make sure the business gets all the required fuel to grow. The fund houses will make sure you get connected to all the required major players from the market where you can push the growth.

7. Long-Term Association

The long-term association helps everyone. The same applies to private debt players. Whenever private debt players infuse the funds, they make sure there should be a long-term association with the client. So, this will stand a win-win condition for both private debt players and clients.

8. Industry Expert

Private debt players do not infuse the funds unless they are well-versed in the industry. So the borrower does not have to put in the effort to make the lender understand industry challenges. Rather, lenders help borrowers deal with the industry challenges in the best way possible.

9. Professional Approach

The lenders work across the globe. They understand their areas of expertise and operation. They always have a professional approach to dealing with the borrower. Lenders will always make sure there should not be any operational obligation to the borrower. So, the borrower can execute the operation in his style.

Private Debt Funds at Terkar Capital

We at Terkar Capital facilitate private debt funds, that offer flexible and unconventional financing solutions for businesses that may not fit traditional banking operations. We provide fast execution of funding proposals with high exposure amounts and no equity dilution. However, our focus is on long-term associations with clients, bringing industry expertise and a professional approach to help businesses navigate challenges and fuel growth.

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.

FAQs On Private Debt Funds

The debt fund can be arranged in dollars (any other foreign currency) or in rupees, as per the convenience of the borrower. However, it is suggested that if the borrower is not exposed to foreign currency (either through income or expenses), then funding should be taken in rupees only.

The rate of interest will be in sync with the Indian economy, inflation rate, and MCLR. However, funding currency will be a determining factor.

As long as the project and business are good, there is no geo limit to it. Private debt funds can be arranged in Pune, Mumbai, Maharashtra, and any part of India.

As the private debt funds follow the flat operational structure, there is no time-consuming process for the sanctions. It works way faster than normal banking channel operations.

The lenders have operated in the Indian Market since 1997. The Indian market and the Indian economy are not new to them.

Yes. As this funding is in debt format, collateral is required. However, there will be total flexibility on the collateral part which can be mutually decided.

Yes. Very much. Private debt players follow all the rules and guidelines laid down by the RBI and the Government of India.

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Terkar Capital is a registered brand of Terkar Global Financial Development Pvt Ltd, an Investment Banking Firm with a national footprint. We work extensively with professionals and businesses of all sizes to arrange debt funding instruments.

Terkar Capital

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Head Office

Castle Eleganza, 103, Bhonde Colony, Dr.Ketkar Road, Erandwane, Pune – 411004, MH-India

Yes@terkarcapital.com

+91 8308629820

Corporate Office

The Capital, Level 7, B-Wing, Plot C – 70, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051.

Mumbai@terkarcapital.com

+91 7414973455

Branch Offices

Nashik | Nagpur | Chhatrapati Sambhaji Nagar | Hyderabad

Growing Nationwide…

Operational Presence

Delhi | Bengaluru | Chennai | Kolkata | Ahmedabad | Surat

© Terkar Capital 2024

CIN – U70200PN2023PTC224016