Working Capital Finance

Rajan Patel is running an automobile part-manufacturing company “Royal Motors Pvt Ltd” situated in Mumbai and Pune. He deals in manufacturing and selling spare parts of vehicles. He has been in this business since 2013. His turnover according to the financials of the previous year is showing of Rs.55 Cr. Being well-known in the automobile sector, he has goodwill in the market. Now he is thinking of expanding sales all over India for which he needs funds for manufacturing spare parts. Meanwhile, he has received a new order and the funding requirement of such an order is Rs.13.4 Cr. Already, he has given his machinery for collateral. Having no collateral, Rajan is confused about obtaining funds!

As per his current need, he went to many of the lenders and asked for assistance. The lenders were ready to give a loan but against collateral only. Rajan was disappointed at getting no clues for getting funds. Searching for a fundraiser, he came across Terkar Capital. To avail assistance, he set up a meeting with us.


Business Commencement year 2013
Nature of Business Manufacturing Company
Company’s Turnover 55 Cr
The amount required for funds Rs. 13.4 Cr
Mortgage available None

We met Rajan and had a thorough discussion about finances. We asked him to issue his companies financials for analysis. Our team inspected the financials and advised him to go for Working Capital Finance. There are several instruments available for working capital finance. Below are a few of them:

  1. Bill Discounting
  2. Factoring
  3. Letter of Credit Discounting
  4. Cash Credit
  5. Overdraft Facility
  6. Bank Guarantee

While analyzing the financials, we decided to raise the funds through the instrument of the Cash Credit facility of working capital finance. Cash Credit is a facility offered by borrowers principal banker whereby, he is sanctioned a particular amount as per Drawing Power (DP) which can be utilized for making his business payments. The banker sets a limit for withdrawing the amount, and the borrower cannot cross that specified limit. The best part is that the interest is charged only to the extent of the money used.

We discussed with his principal banker and communicated that Rajan can use the Cash Credit facility as per his drawing power which was exposed till Rs.15 Cr. Rajan then withdrew the desired amount and used the same to execute his order. Rajan was benefitted from the CC facility and was contented with our service. From then onwards, Rajan became our regular client and consults us all about his companies finances.

Financial Instrument Capital Finance-Cash Credit facility
Total time execution 5 days
CC Limit Rs. 15 Cr
Amount received Rs. 13.5 Cr
Customer service

Cash Credit (CC Facility) is the most beneficial and largely used instrument of working capital that can be utilized while working capital crunch. The process sometimes can be lengthy and confusing, But Terkar Capital will provide you with the finest options and arrange the appropriate solutions for them. Right from documentation to disbursement of funds, we provide all the services conveniently. Once a client approaches us for funding, he becomes our regular customer. So whenever it is Working Capital Finance, Terkar Capital is here for your service!

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