Debt Based funding Solutions in India

Business growth and capital needs walk together in the developing countries in India. If you want to introduce new product or service in the organization or expand your business to new location, capital assistance is must. There are different ways to raise finance to address the needs of small and medium size business in India. In the current article let us talk about different debt based funding solutions that are available in the country.

Debt funds

Debt funds are nothing but mutual funds that invest in fixed income securities like bonds, gilt funds, treasury bills, short term plans, fixed maturity plans and so on.

Debt based funding

This type of funding is gaining popularity in India during recent times. This is in fact a risk freeway of arranging funding for the business. You can get debt finance for both secured and unsecured option. If your business is in a position to provide debt funds as security to raise money for your capital needs, you can choose to go with secured debt finance or else unsecured debt finance will be your option.

Short term loans

If you are looking to address short term needs of the business, you will borrow money either from the bank or private syndicate finance in Mumbai by pledging some securities. If you fetch the loan by keeping the securities like bonds, treasury bills as collateral, the interest amount you pay to the lender is very low when compared to unsecured short term loans. The tenure of these loans is very short ranging from one month to year. You can choose the tenure for the repayment of the loan depending on your revenue generation capacity.

Working capital loans

Another big option where the business owners choose to go with debt funding is working capital. Due to cash in flow and outflow, every business may experience cash gaps. These cash gaps stand as major hurdle to carry on may business operations today. This is the juncture where business organizations look for some quick capital assistance from syndicate finance in Mumbai. Factoring receivables is one of the popular options of debt based financing to address your working capital needs.

Loans against Property & Security

Sometimes small and medium business organizations fail to arrange money for their huge capital requirements. In these cases you can easily approach syndicate finance to fetch huge loan for your long term capital needs. As business needs huge capital to address big needs, the syndicate finance Mumbai may ask you to pledge some security. It can be assets of the business like building or debt securities. The financing company may also check your credit score to know your credit worthiness. As you are fetching the business loan against some collateral, the interest rate on these loans is not as high as unsecured loans.