Debt Syndication

GoldRoof assists its clients to leverage on debt through structured financial products for various requirements including Greenfield projects funding, expansions, working capital and syndicating funds for acquisitions.

 

GoldRoof provides support services such as:-

 

  • Structuring and critical evaluation of the short, medium or long term financial requirement
  •  Preparation of Financial plans as well as identification of size and type of the debt
  •  Arranging sanctions & facilitating execution of requisite documents for disbursal of loans

 Our professionals advice is supported by a true understanding of the issues involved and challenges faced by our clients, connectivity with the financial markets, deep sector knowledge and a skilled negotiation prowess.

  • Working capital finance
  • External Commercial Borrowing (ECB)
  • Project Finance
  • Debt swapping at lower ROI with enhancement

Working capital finance

Working capital is the money required to meet current obligations (those due in less than a year) and to acquire earning assets.

GoldRoof helps its clients in raising Working Capital Finance to meet their operating expenses, purchasing inventory, receivables financing etc.

The limits are arranged either through sole banking or through multiple/consortium route, depending upon the size of the facility & best combination suited to the client.

 

Types of working capital finance:-

 

i) Funded facilities:- Where the bank provides funding and assistance to actually purchase business assets or to meet business expenses.

- Cash Credit

This is a running account facility that is extended for a short period, not more than 12 months and reviewed regularly. Banks normally lend money against the security of stock and debt. The facility is sanctioned by the bank based on the business cycle, working capital gap and the drawing power of the client against the security by hypothecating of stock and book debts.

 

- Overdraft Facility

This facility is quite similar to Cash Credit facility however there is no charge created by banks on the current assets.

 

- Pre-shipment Finance/Packing Credit

The facility is provided to the exporters wherein Pre-shipment financing enables borrowers to procure raw materials for the manufacture of finished goods for export. The facility is available both in Indian Rupee and in major foreign currencies to Exporters, enabling the exporters to compete in global market against others.

 

- Post-Shipment Finance

In addition to packing credit, this facility is provided post sale to the exporter for the credit period permitted to the overseas buyers to make payment.

 

 

- Buyers Credit

Buyers Credit refers to loans for payment of imports into India arranged on behalf of the importer through an overseas bank.  Buyers credit helps local importers access to cheaper foreign funds close to LIBOR rates as against local sources of funding which are costly compared to LIBOR rates.

The maximum duration of Buyers credit is allowed for 1 year in case the Import is for trade-able goods and for 3 years if the Import is for Capital Goods.

One can make the import payment to its overseas supplier by availing the buyers credit and can repay the lender at a later date. The facility is usually securitized with a LOU from domestic bank.

 

- Suppliers Credit

Supplier’s Credit relates to credit for imports into India extended by the overseas suppliers or financial institutions outside India.

Usance Bills under Letter of Credit (LC) issued by Indian bank branches on behalf of their importers are discounted by Foreign banks or by Indian banks’ overseas branches. Paying your suppliers at sight against Usance bills under letter of credits.

 

ii) Non-Funded facilities:- Where the bank can issue letters of credit or can give a guarantee on behalf of the customer to the suppliers, Government Departments for the procurement of goods and services on credit.

 

Bank Guarantee

Local and foreign currency Bank Guarantees issued on the behalf of the borrower against specified collaterals for its business needs.

 

Letters of credit (L/C)

An L/C is a Banker undertaking on behalf of a constituent to pay to a third party against compliance of stipulated conditions. This involves irrevocable sight and usance L/Cs, back to back L/Cs, Standby L/Cs & Inland & Foreign L/Cs.

 

TERM LOAN

Term Loan is a loan borrowed for fixed amount over the fixed period of repayment and floating rate of interest.

Term Loan is normally preferred by small and medium scale businesses to buy assets or infrastructure which is required to run the business on day to day basis. It may include purchase of machinery or buying an office or workshop premises The maturity period or term is between 1 – 10 years.

 

The term Loan can be availed for following purposes:

Purchase of Fixed Assets:

The term loan can be used to purchase fixed assets like premises, plant & machinery etc. The usage or performance of assets increases the business performance and hence the profit and makes the repayment of the loan easier.

Even after the term loan is settled, the assets procured continue the productivity as asset life span is certainly longer than the term loan span. Further, if an appreciating asset is purchased then the business leverages higher value of asset which further can be used to raise funds for business expansion or diversification.

 

Mortgage Term Loan:

A Term Loan can be availed by mortgaging a kind of security like Home, Factory/Office premises etc. This type of loan is borrowed for longer period of time that is 10, 15 or 20 years. The repayment of the principal amount and interest may be fixed in nature or it may vary over the course of repayment. The borrower may avail the revised rate of interest later and may be benefited by saving in interest.

External Commercial Borrowing (ECB)

Arrangement of foreign currency borrowings for Indian corporate from confirmed banking sources outside India are called "External Commercial Borrowings" (ECBs). These Foreign Currency borrowings can be raised within ECB Policy guidelines of Govt. of India/ Reserve Bank of India applicable from time to time. 

  •  Arranging Foreign Currency Loans/ External Commercial Borrowing.
  •  Arranging Buyers’ Credit/ Suppliers’ Credit.
  •  Arranging funds from International Markets by way of Bonds, FRNs, FCCBs etc.
  •  Arranging loans from Export Credit Agencies of other countries
  •  Advisory services on overseas investments
  •  Financing and structuring cross border acquisition debt.

Project Finance

Project finance is given by the lending institution or banks to the borrower for the purpose of business expansion, reconstruction etc. Project Finance is also available to acquire the fixed assets like land & building, plant & machinery etc.

 

 

This funding is available to the existing business or industrial houses for growth purpose and equally available to the new business entrants in form of seed or startup capital.

The short term Project Finance can be availed for one year whereas the mid and long term Project Finances can be obtained for up to 10 years depending upon the feasibility of the project.

 

The lending institutions seek good credit, strong solvency ratio, strong management systems, technology penetration etc. as granting criteria for Project Finances. The borrowers should have the detailed project report ready as it is the very basis of getting Project Finance sanctioned. 

 

We provide following services in Project Finance:-

  • Preparation of Project Reports, Projected Financial Data with in-depth Financial & Ratio Analysis as per specified needs of the project.
  • Financial Planning which includes assessment of need-based financial requirement, swapping of source of funding suitable for the specific need of the client and providing measures and yardstick for cost effective financing.
  • Assistance in Project & Management Tie-ups.

Debt swapping at lower ROI with enhancement

We specialize in lowering overall interest expense of our clients through structuring of financial products in a cost effective manner. The existing debt at higher ROI can be swapped with other relevant financial products with lower interest rate.

 

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Quick Contact

Ludhiana Branch
Ludhiana: SCO - 138,
2nd Floor, Above B-7, Feroze Gandhi Market,
Ludhiana - 141002
Call: +91 9888267267 / 9988274274
LandLine Number : +91-161-4656700
Email : contact@goldroof.net