The sugar industry is one of the most capital-intensive industries. There is a huge capital involved to start as well as run the industry. 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. This working capital issue of the sugar industry can be best sorted out with the sugar pledge.
The time gap between the production of sugar and selling sugar to the market is also very high. Most of the time the sale of sugar is controlled by the government. All these factors finally hamper the working cycle of the company. And the sugar pledge is the best and fast available solution for your working capital.
Many Sugar factories have sugar stock worth crores of rupees. The stock is basically idle unless it gets converted to cash. Most of the time, the requirement of the sugar factory for sugar pledges cannot be taken care of by a single financial institution and the process then becomes complicated.
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 must get the best deal with all the required facilities.
Understand the process of sugar pledge loans from the case study.
An application must be submitted with relevant documents and information. Terkar Capital will help you formulate your application in the best manner.
The application will then get registered under the financial institution provided all the information and the documentation is done.
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.
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!