Sugar Pledge Funding for Sugar Industry

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Sugar Pledge Funding

The sugar industry requires significant capital to initiate and sustain operations, making it a capital-intensive sector. The turnaround time for sugarcane to cash is very high. Financing sugar companies can thus be a problem. And this is one of the main reasons why sugar industries face crunches on working capital.

To overcome this challenge, consider exploring the option of sugar pledge funding. It is a secured debt product, that offers a viable solution to address the industry’s working capital needs.

Key Features to Avail of Sugar Pledge Funding

Impact on the Working Cycle of Sugar Companies

The time between sugar production and market sales is long, and sugar sales are often controlled by the government. So, this can hinder a company’s working cycle. Hence pledging sugar is the best and quickest solution for working capital.

Many sugar mills have sugar stocks worth crores of rupees, which are essentially idle until they are converted to cash. However, a single financial institution is often unable to meet the sugar mill’s sugar pledge requirements, which can complicate the process. So we at Terkar Capital help sugar factories to get the required funds against sugar as a pledge. With our help, the sugar factories can get funding at the minimum rate of interest in the market. We will make sure our clients get the best deal with all the required facilities.

Read the insights on effective Management of the Working Capital Cycle here

Advantages of Sugar Pledge Funding

This is an industry-specific solution
No separate arrangements are to be made to raise funds
The funds can be used to justify the immediate working capital requirement and the farmers’ advances for sugar cane harvesting
Repay the funds against the release of a specific stock
Highly flexible debt instruments
Real-time market value is considered for exposure

Procedure to get Sugar Pledge Loan

1. Preparing an application

An application must be submitted with relevant documents and information. Terkar Capital will help you formulate your application in the best manner.

2. Registration of Applications

The application will then get registered under the financial institution provided all the information and the documentation is done.

3. Consideration of applications by the sub-committee and the standing committee

After the basic documentation check, the application is considered by the sub-committee. The sugar factories may be invited to present their case in front of the committee. After consideration by the sub-committee, the application is then considered by the Standing Committee.

4. Approval of the Government and Disbursement of Loans

The advice and the opinion of the standing committee are processed for the approval of the government. The loans are then disbursed in one or more instalments after the sugar factories comply with the conditions stipulated in the approval.

This is the basic process overview of how the loans are disbursed under sugar pledge loans. But you don’t need to worry about any of this! Terkar Capital takes care of this entire process for you!

Learn more about the Sugar Development Fund here.

Apply for Sugar Pedge Loan with Terkar Capital

Sugarcane processing takes time and requires upfront capital, causing cash flow issues for sugar companies. So, we have facilitated a financial product of a sugar pledge loan specifically designed for the sugar industry. It uses sugar stocks as collateral, offering quick and flexible financing at competitive rates.

The process of sugar pledging enables sugar industries to acquire funds for operational expenses promptly, thus boosting their working capital cycle. We assist sugar mills in securing sugar pledge funding at competitive rates and guiding them through the approval process.

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

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

We create 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.