Where it can help
Can reduce interim principal instalments while an eligible transaction converts into cash.
SOLUTIONS / Up to ₹20 Cr
Working Capital with Bullet Repayment
Consider an eligible facility with principal repayment at an agreed maturity. Interest may be payable periodically or on another contracted basis; a bullet structure does not imply that all payments are deferred.
WHO IT MAY SUIT
Seasonal businesses, order-led manufacturers and companies with evidenced milestone collections
When to consider this facility
A defined operating cycle produces a significant collection near maturity.
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
A large maturity obligation creates concentration and refinancing risk. Collection delay can leave no affordable exit.
THE CLIENT’S PERSPECTIVE
Make the numbers work first.
Match maturity to a conservative collection date, preserve an interest buffer and quantify a credible fallback source.
A practical preparation tip
Set aside cash progressively where possible. Do not treat a future rollover as a committed repayment source.
ILLUSTRATIVE CLIENT SITUATION
How the requirement might arise
A seasonal distributor expects receipts after a concentrated sales period. Review would test unsold stock and customer payment delays before considering a maturity that gives a realistic collection buffer.
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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