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Execution Process for Project Finance

Project funding case study

Robert owns an automotive manufacturing company known as ‘RD manufacturing Private Limited’. He started the company 10 years ago. The company is doing very well with a turnover of 75 crores this year. The company is into manufacturing automobile parts and other essential components. Some of the best automotive brands in India are clients of ‘RD manufacturing’.

Till now, Robert’s company had an office in Mumbai and a manufacturing plant in Pune. Now, due to the rapid growth of the business, Robert’s clients have spoken to him about opening another plant in Jamshedpur. Therefore, now Robert is looking forward to expanding his business by opening another manufacturing unit at Jamshedpur. But he is worried about the funds for his new project. Taking the funds out of working capital will create a challenge for the existing customer and will hamper the working capital cycle.

As a good businessman, this is not a good course of action. So he started to explore the options of raising the funds from the debt market, without disturbing the existing fund flow. He has good credit and can repay the loan from the revenue he gets from his project after completion. He foresees very good profit and rapid growth if he expands his company now. Thus, Robert’s rating as a business person and his extensive experience in the manufacturing industry is well known.

Project finance process

Financial Snapshots

Company Turnover Rs. 75 Crores
Amount Of Funding Required Rs. 20 Crores
Mortgage Availability The project itself is a mortgage
Company IndustryAutomobile Manufacturing

Financial Analysis

Robert is especially looking for Non-recourse funding as a feature of the loan. Non-recourse funding means that he and the other shareholders of the borrower will have no personal liability in case of monetary default. Any recourse the lender may have will be limited primarily or entirely to the project assets if the project company defaults on the debt.

He didn’t know which loan to apply for or which financial institution to contact. While discussing his problem with a business friend, the name Terkar Capital came across. Thus, Robert approached Terkar Capital and we set up a meeting with him to understand the process of project financing.

Snapshots of Analysis

Business Commencement Year2010
Amount Disbursed Rs. 20 Crores
Moratorium Period13 Months (From 1st Disbursement)
Total Execution Time  20 Working Days. 
Customer Service Experience 4.4/5

Our executives met Robert and understood his requirements for the funding and his business. So, after a detailed discussion, we suggested that he should take Project Finance. This type of funding would be a perfect fit for him considering the viability of his project, payback period, and his personal experience and profile. 

How to get project funding?

The financial institution has to be shown that the project is viable in order to receive the loan. Therefore, we helped Robert prepare a report explaining his project and the financial position of the company. And that he is capable of paying off the loan from the revenue, that project generates. He also would not require any separate mortgage for the funding as the project itself will act as a mortgage for the loan. In the case of a project finance loan, the funds can be generated as per the requirement, be it periodically or all at the same time. 

Robert got his project funding sanctioned in just 20 working days after approaching us. Robert’s new manufacturing plant has been doing very well now and he has almost repaid the entire loan amount. So, now, he is one of our loyal customers at Terkar Capital.

Project Financing at Terkar Capital

Terkar Capital is one of the leading corporate financial consulting agencies in India. We make sure that our clients get maximum finance with minimum collateral so that your business can grow exponentially, without disturbing the current cash flow. Our financial instruments are confidential and the level of integrity in the utilities is well-maintained. We explain each and every process to the client keeping his best interests in mind. Once the client is clear about the procedures involved we start with the procedure and provide the required funding in a timely manner. Once you approach Terkar Capital, consider the job done!

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