Structured Debt Finance
Every company has its own unique structure.
The company's operations, financial requirements, and everything else changes
in response to changes in the industry and the company's stage of development.
At one point in time, the company cannot raise 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.
What is Structure 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.
At structure 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. With
or Without Credit Rating
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.
Empower your company’s growth with Terkar
Capital's specialized structured debt
financing instrument. We understand the company's strengths,
challenges, and prospects. Based on our internal assessment, we decide the best
course of action to raise funds. We work as a team with the borrower and lender
to raise the optimal amount of funds. We have a proper and professional
approach to raising funds.
Process
To Raise Structure Debt -
Raising the debt for any company under
structured debt is as good as raising any other debt. Below are the few
Standard Operating Process team Terkar Capital follows -
FAQ’s
1. What
is the minimum amount that can be raised under structured debt?
The minimum amount can start with Rs. 50
crores onward. Again that depends on the cash flow of the company.
2. What
is the maximum amount that can be raised?
Under
structured debt, there is no capping for the upper limit for raising the
funds.
3.
Collateral required 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.
4. What
is the interest Rate?
The ROI generally depends on the company, its
financials and currency under which the company is seeking the funds.
5. What
is the turnaround time required to raise the funds?
Generally it takes around 25-35 working days,
as long as all the documents are timely made available.
