Corporate finance is made available to businesses (of any scale) that want to take the debt route to quickly ramp up their operations. Corporate finance can be sought for:
Leasing equipment, tools, machinery or gen set purchase – to avoid high capital expenditure, and reduce risk of technology disuse (In case of IT and other technology-led companies), and asset acquisition at the end of the lease period.
Term loans: Short or medium-term tailored to meet specific business requirements, and tide over temporary financial crisis.
Working capital finance: To improve cash and liquidity.
Subscription to NCDs and CPs: That can subsequently be traded in the secondary market to raise capital
Loans against securities, ESOP or IPO financing: These are loans against specific market products.
Dealer or vendor finance: To lend strength to the firm's supply chain and improve goods distribution
Other well-known methods of raising short or medium-term corporate loans with the assistance of Creditfina advisers are:
Loans against property and other assets
This is generally available for plant/factory modernization or new asset acquisition. This method of financing does not require any particular formality except that of creating a mortgage on the value of the assets against which the loan is taken.
Discounting bills of exchange
This method is widely used for meeting short-term finance needs. When the goods are sold on credit, bills of exchange are issued by the buyers. Instead of holding on to these bills till the date of maturity, companies can discount them with commercial banks on payment of a fee known as bank discount. The rate of discount is as set by the apex bank and this may change year after year.
This is another mode for meeting short-term capital requirements. Under this mode, a commercial bank may allow money to be drawn as advances for a specific time-bound period. This facility is granted to a company against the security of goods in stock, or promissory notes bearing a second signature, or other marketable instruments like Government bonds.