Where it can help
May improve the fit between debt tenure, asset use and working-capital needs.
SOLUTIONS / From ₹10 Cr
Asset Restructuring + Additional Working Capital
Review existing borrowing, available assets and operating needs to explore lender-approved realignment and incremental working capital. Viability, security valuation and existing lender consent are fundamental.
WHO IT MAY SUIT
Asset-owning corporates with viable operations, expansion needs or mismatched debt structures
When to consider this facility
Existing obligations constrain cash flow despite usable assets and a credible operating plan.
Use the facility for a defined, permitted business purpose with a documented source of repayment. Apply ahead of the cash requirement so that assessment, conditions and documentation can be completed.
What to weigh carefully
Valuation haircuts, legal costs, additional charges and consent delays may limit benefit. Restructuring can affect credit reporting and is not debt forgiveness.
THE CLIENT’S PERSPECTIVE
Make the numbers work first.
Compare post-transaction cash flows after every fee, security release and repayment obligation. Distinguish a viable timing mismatch from persistent operating losses.
A practical preparation tip
Disclose all liabilities and security charges early. Engage existing lenders before stress escalates.
ILLUSTRATIVE CLIENT SITUATION
How the requirement might arise
An established manufacturer has assets but fragmented borrowing and insufficient liquidity for orders. Review would test business viability, title, lender consents and whether the revised debt schedule leaves adequate cash for operations.
Hypothetical example for explanation. This is not an actual customer testimonial, completed transaction or assurance of funding.
Before you accept an offer
Ask for the lender’s identity, all-in rupee cost, annualised pricing where applicable, processing and other fees, security, guarantees, covenants, repayment schedule and default provisions. Confirm that the facility’s permitted use matches the proposed transaction.
Consider a lower-cost existing-bank enhancement or supplier terms where suitable. Defer borrowing if the purpose, underlying margin or repayment source cannot withstand a reasonable downside scenario.
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