John decided to take a loan from a financial institution in order to help his company enter the international market. According to his analysis, he will require Rs. 5 crores to kick start his business internationally starting with the US. He approached some financial institutions but they refused to approve John’s loans. Unfortunately, he did not have any assets or property which he can keep as collateral with the financial institution. Here he was not very much clear on what kind of funding he should take to have an international jump. But he just needs the fund, maybe in a term loan or maybe in working capital Financing. The bottom line was very clear, he wanted to have funds for the business. So, here, we will learn how the Process of Trade Financing works in John’s case.
|Company Turnover||Rs. 50 Crores|
|Amount Required||Rs.5 Crores|
|Mortgage Availability||No Mortgage|
|Company Industry||Food Industry|
|Reason For Requirement||Starting Export|
While discussing this plan with one of his business colleagues, he recommended to approach Terkar Capital for financial advice and debt arrangements. After he got in touch with one of our experts. We set up a meeting with John to discuss his financial requirements. After he spoke with our executives, we analyzed his business situation and recommended that he take Trade funding.
Trade finance is the financing of international trade flows. It reduces the risks involved in international trade transactions. This financial instrument helps you to bridge the gap between you and your export business working capital. We at Terkar Capital understand the challenges that a businessman may face and thus we make sure that you get your funding even though you do not have collateral.
We explained the entire procedure involved in Business Trade Finance to John. Once the picture was clear on both ends, we started the procedure. The process of trade financing started when we received the Purchase Order (PO). After the purchase order was received we completed all the required documentation in relation to the export. Once the goods were shipped, the amount was released to John by the financial institution.
There is sometimes risk involved while dealing with international customers, especially if it’s the first time. When John shipped his goods he was paid almost 90% of the invoice amount. Then after the customer made the payment to the financial institution, John was paid the remaining balance.
John was also worried about the rate of interest that the financial institution would charge. Terkar Capital looked after that too! The interest was started after he received the amount until the customer made the payment. As soon as the financial institution received the payment from the client, the process of charging interest was stopped. He got a good amount of export finance as his first customers were in the US. Now because of exports, the turnover of the company is growing. Mr. John is absolutely happy with both decisions, the decision to start exporting and the Decision to Choose Terkar Capital for financial aid.
|Business Commencement Year||2014|
|Amount of Funding||Rs. 5 Crores|
|Total Execution Time||Working Days.|
|Customer Service Experience||4.4/5|
|Country of Export||US|
Terkar capital is one of the best trade finance syndication firms across India. We understand the strengths and weaknesses of your business before suggesting financial solutions to you. Once our executives analyze your business and your requirements in detail, we will suggest the best financial solution for you. You will be able to enter the international market with lesser risk and better access to financial products. So, we will help you with every step including documentation, timely processing of the loan, and so on. Our transparent process and reliable working style make us one of the leading Corporate Financial Consulting firms. Once you give the responsibility to Terkar Capital, consider the job done!!
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