We consult companies in securing banking facilities for their working capital requirements. We can arrange a complete range of working capital solutions for our clients, including Letters of Credit, Trust Receipts, Invoice Discounting, Overdraft, Term Loan, etc. We provide value-added services by structuring facilities specifically tailored to suit client requirements, negotiating for pricing, providing our expertise on collateral structuring, and educating our clients on the best solutions available for them in the market.
Our in-house Risk team analyzes each client proposal internally to ascertain its credit quality. We ensure that we are dealing with clients that are fundamentally strong and have the potential to grow.
We have strong relationships with banks built over a period of time. We partner with high-performing bank officers to ensure a positive outcome on our client proposals.
We manage the entire process of securing facilities on behalf of our clients from start to finish, including co-ordination with the bank. We ensure quick turnaround times on our proposals. We are experts at what we do, which means our clients can leave their financing requirements in our hands while they can devote their time to their core business.
Learn more about Working Capital Facilities
Letters of Credit
A Letter of Credit facility refers to a line of credit taken by a business entity primarily for the purpose of financing international trade. A Letter of Credit or LC is a financial instrument used by a buyer of goods in one country to pay the beneficiary (seller) in another country for goods the beneficiary sold and shipped to the borrower. To obtain an LC, buyers apply to issuing financial institutions. Some buyers must deposit sufficient funds to cover the face amount of the LC. Other buyers use a line of credit. In the case of the line of credit, this is called a “Letter of Credit Facility”.
Trust Receipt or TR is a trade financing facility offered by a commercial bank to its eligible customers signing a set of trust receipt documents. TR is a document acknowledging that the customer is keeping the goods for resale on behalf of the bank and the proceeds from the sales must be used to settle the bills owing under TR.
An Invoice Discounting facility allows a business to draw money against its sales invoices before the customer has actually paid. By receiving cash as soon as a sales invoice is raised, the business will find that its cash flow and working capital position is improved. Such a facility helps a company to convert its receivables into instant cash which improves liquidity resulting in healthy and continuous cash flow of its business.
An Overdraft facility is a formal arrangement with a bank which allows an account holder to draw on funds in excess of the amount on deposit. Overdraft facility financing is most commonly used by businesses as a way of making their working capital more flexible. With an overdraft facility, companiesmayuse the funds at their convenience, and are charged by the bank on the amount actually used.
Many organizations require to import and/or export from other countries. The whole process involves obtaining appropriate license, marketing products, concluding a sale contract, etc. Once the sale contract has been finalized, credit terms are also agreed upon. In this scenario, Trade Finance comes into picture. A documentary credit (often referred to as “Letter Of Credit