Industry Background
The Industries Pvt. Ltd. is a Pune-based company engaged in water drainage projects and primarily works on government contracts. Their last year’s turnover was ₹16.78 Crore, and their current year’s turnover is ₹5.87 Crore.
The company had a strong execution history but experienced a temporary decline in billing during the current financial year due to delayed project cycles and payment schedules typical in government contracts.
Industrial Challenge
The company urgently required funds for executing an ongoing water drainage Project.
However, they were facing multiple financing obstacles.
1. Turnover Drop
The current year’s turnover has reduced significantly, which made traditional banks hesitant to approve funding.
2. Existing EMI Burden
The Promoter was already paying approximately 5 lakh monthly EMI, which weakened the loan eligibility in the bank assessment.
3. Nature of Business
Since the client worked on government tenders, receivables were delayed, and banks generally avoid unsecured exposure in such cases.
4. Working Capital Gap
Payments from the government department were expected but delayed, while project execution required immediate vendor payments and material procurement.
Because of these factors, multiple lenders had either rejected or significantly reduced the funding proposal.
How does Terkar Capital Approach?
Instead of focusing only on the financial statement, we analyzed the project’s viability and cash flow cycle. We evaluated:
- Government work order credibility
- Project billing cycle
- Expected receivables
- Execution capability of the contractor
- Historical repayment behaviour
Based on this structured credit assessment, we positioned the case correctly with a suitable NBFC lender.
Financial Snapshot
Particular | Details |
Loan Type | Unsecured Business Loan |
Loan Amount Arranged | 1 Crore |
Business Type | Government Contractor (Water Drainage Project) |
Existing EMI | 5 lacs per month |
Turnover Last Year | 16.78 Cr |
Turnover Current Year | 5.87 Cr |
Location | Pune |
The Outcome
Terkar Capital successfully arranged a ₹1 crore unsecured business loan for the client despite a turnover decline and existing EMI obligations
Impact on the client:
1. Project execution started immediately without delay
2. Vendor and material payments were cleared on time
3. Contractor maintained government project timelines
4. Avoided penalty and contract cancellation
5. Improved cash flow stability
6.Business continuity maintained
Most importantly, the client completed the drainage project billing cycle, and receivables began flowing, stabilizing the company’s financial position.
Final Result:
What traditional financial institution rejected due to the number, Terkar Capital approved through structured credit financing. And this funding helped the client with:
1. Executing a government infrastructure project
2. Protecting business reputation
3. Sustain operations during the low billing period
4. Explore future project opportunities
