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Structured Debt Finance

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    Structured Debt Finance

    Every company has its own structure. The company – its operations, its financial requirements everything changes as per the change in the industry and the phase of the company. At one point of time, the company cannot raise the funds without security. So, Collateral becomes an integral part of the debt capital raising process. However, what if the company crosses the turnover of Rs. 500 crores and needs the working capital facility or expansion fund of Rs. 100 crores or 150 crores? In this case, the structured debt fund comes into the picture. 

    Structured debt fund

    What is Structured Debt Finance?

    Structured debt is the financial product which is the combination of many financial instruments and if required, syndication as well. This is 100% tailor made – meant for company solutions only. 

    Process To Raise Structured Debt

    To facilitate the growth of company, Terkar Capital works with respective finance institutions and clients

    Structured debt process

    Why Structured Debt?

    1. Tailormade Solution

    At structured debt, when the funds are raised, those are raised considering the company at a center point. The debt instruments are arranged keeping the company requirement in mind. It may be the combination of Term Loan, OD, CC, Foreign currency funding, Trade Finance etc.

    2. Accelerates Growth 

    There is a point, where the regular debt instruments don’t work well for the company. And this becomes one of the main reasons for the holding company’s growth. In order to get out of the challenge, the structured debt works well for the company.

    3. Funding With / Without Collateral

    It is always not necessary to have the collateral in place to raise the funding. However, the cash flow of the company is the important consideration. We at Terkar Capital, understand the strength areas of the company and based on the areas we raise the funding. If the good proven and prospective cash flow is in place, collateral would hardly be the concern.

    4. No Higher Amount Restrictions

    There are many companies across India and globe who deal in crores and thousands of crores. These companies have the high requirement of funds. Under structured debt, there is no capping for raising the funds. It may start with a minimum 5 million USD and can go up to any amount. 

    5. No Higher Amount Restrictions

    As stated earlier, when it comes to raising the funding under structured debt – it can be done for the company bearing the credit rating or not. When a company deals with Rs. 100+ crores of turnover, there is a high possibility that the company may lag in any of the areas, which may drag its credit rating. As long as the company has good cash flow and good work orders in hand the structured debt can be worked out well.

    Structured Debt at Terkar Capital

    We at Terkar Capital understand the company well. We understand the strengths, challenges and prospects of the company. Based on our internal assessment, we decide the course of action to raise the funds. We work as a team with the borrower and lender to raise the optimum amount of the funds. There is a proper and professional approach to raise the funds. 

    Learn more about structured financing in details

    FAQs

    The minimum amount can start with Rs. 50 crores onward. Again that depends on the cash flow of the company.

    Under structured finance, there is no capping for the upper limit for raising the funds.

    Collateral may or may not be part of the requirement. Mostly this will be decided on the financials of the company.

    The ROI generally depends on the company, its financials and currency under which the company is seeking the funds.

    Generally it takes around 25-35 working days, as long as all the documents are timely made available.