Where it can help
May reduce immediate fixed debt-service pressure and support a stronger capital structure.
SOLUTIONS / ₹25 Cr+ indicative requirement
Equity-Based Working Capital
Evaluate equity-linked or investor-led capital for larger growth requirements where a conventional debt-only structure may not fit. This is a bespoke capital discussion, rather than a standard revolving bank facility.
WHO IT MAY SUIT
Established growth companies with credible governance and a scalable operating model
When to consider this facility
Expansion requires a more durable capital base than short-term cash flows can service.
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
Potential dilution, investor rights, governance obligations and exit expectations can materially affect promoter control.
THE CLIENT’S PERSPECTIVE
Make the numbers work first.
Compare dilution and long-term economic cost with debt servicing. Review valuation, control rights, exit provisions and permitted use of proceeds with independent advisers.
A practical preparation tip
Prepare a reliable financial model, ownership records and a clear explanation of how new capital creates value.
ILLUSTRATIVE CLIENT SITUATION
How the requirement might arise
A growing enterprise has demand but limited debt headroom. Review would assess the expansion economics and investor fit, including whether the founders can accept reporting requirements, ownership dilution and an agreed exit framework.
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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