Where it can help
Can preserve property headroom and align funding to a measurable trading cycle.
SOLUTIONS / Up to ₹20 Cr
Non-Asset-Based Working Capital
Fund materials, wages, processing and dispatch through a facility assessed around business cash flows and operating strength. Fixed property need not be the sole basis of assessment; guarantees, security and covenants depend on the lender.
WHO IT MAY SUIT
Established manufacturers, distributors, traders and service enterprises
When to consider this facility
An executable order book creates a temporary gap between supplier payments and customer collections.
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
Pricing may be higher than secured bank borrowing; personal guarantees and restrictive covenants may apply.
THE CLIENT’S PERSPECTIVE
Make the numbers work first.
Compare net cash received with total interest, processing charges and repayment frequency. Stress-test a 30-day collection delay and verify that operating surplus covers debt service.
A practical preparation tip
Prepare an invoice-level cash-flow forecast before seeking a limit. Do not finance recurring operating losses with short-tenure borrowing.
ILLUSTRATIVE CLIENT SITUATION
How the requirement might arise
A component manufacturer receives an additional order but must pay material suppliers before the buyer’s 75-day payment. The review would examine margins, confirmed orders and existing bank utilisation before considering a cycle-matched facility.
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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