In your lookout to raise capital for your business, you can try to raise capital via equity instead of taking loans, which carry interest. For that you require investors who would be willing to put money in your business. There are multiple ways of raising equity capital from the market. The most common ways of selling equity for an MSME are crowd funding and private placements.
A well-prepared presentation can lure investors to invest in your business through these routes. We at Capital InSight can help you take your investment proposal to the right people, at the right price.
We can also assist you in arranging the entire paraphernalia of legal, accounting and banking services, which are usually a part of such deals. Some types of equity raising that we can do for you include:
- Private Placements / Equity
- Mezzanine/ Bridge Capital
- Angel/ Venture Capital
While obtaining a loan is the most common way to raise capital for a small or mid-sized business, many a times it needs proper guidance on which type of loan to apply for and how to negotiate for the best rate of interest. With CiA, all you need to do is to prepare a proposal with the inputs provided by us, and leave it to us for finding the best match for you from reputed lenders in the market.
We will ensure that the lender likes your proposal and if there is no problem with your credit ratings, they will provide you a loan at the most competent price. Depending on the type of business you are in and the cash flows accruing, we can structure the repayment schedule with minimal impact on your financial position at any given time. You can also take a collateral loan against your securities, property or any other asset that you hold, with ease through us. Some of the types of loans that we can arrange for you are:
- Project loans/ Equipment Finance
- Working Capital Facilities
- Business Loans
- Loan Against Property
- Loan Against Securities
- Housing Loans
Project loans/ Equipment Finance
Project Finance deals with funding aspects related to a particular project that involves analysing the feasibility of a project and its financing requirements on the basis of the cash flows that the project is expected to generate, if undertaken, over the years. The financing is typically secured by all of the project assets, including the revenue-producing contracts. Project lenders are given a lien on all of these assets and are able to assume control of a project if the project company has difficulties complying with the loan terms. Equipment financing is the use of a loan or lease to purchase or borrow hard assets for your business. This type of financing might be used to purchase or borrow any physical asset. Our credit experts can analyse your project details and help you in the following:
- Greenfield/ Brownfield Project funding
- Construction Equipment Finance
- Commercial Vehicle Finance
- Car Lease Options
Working Capital Facilities
Working capital loans can provide a lifeline of funding for MSMEs with erratic cash flow patterns, sudden spurts in the order book or even occasional slumps that slow down economic activity, just like COVID 19. They are used to cover day-to-day operating expenses, such as business creditors and staff payments. They are simple, short-term loans designed to provide a boost to your business and intended to be paid back in shorter durations. Irrespective of your size and profitability, they can be critical even for the most successful businesses. We help you evaluate your real working capital needs, and attempt to optimize the quantum and cost of funding that is needed for your business, through the following WC facilities:
- Cash Credit (CC) or Overdraft (OD)
- Trade Credit
- Purchase/Discount of Bills
- Bank Guarantee
- Invoice Factoring
- Letter of Credit (LC)
Business loans are unsecured lending assistance provided by banks and NBFCs. Since they are offered without collateral, interest rates are higher and hence aimed to support only the urgent needs of a business. It is one of the most popular forms of funding for MSMEs due to the ease of documentation and speed of disbursement. Businesses engaged in commercial activity which generates recurring revenue is eligible for Business Loan. The following types of entities are eligible for a Business Loan:
- Sole Proprietorship or Professionals in service
- Partnerships firms or Limited Liability Partnerships (LLPs)
- Private and Public Limited Companies
- Trust and society
Loan Against Property
Loan against Property (LAP) or Mortgage Loan is a facility availed by keeping the residential or commercial property as collateral. The Value of mortgaged Property decides the amount of potential loan a borrower can be sanctioned. The lender or the financial institution keeps this property as collateral till the loan is fully repaid. Through Loan Against Property, MSME owners can unlock the financial potential of the property owned without the need to dispose it off. Interest rates are much lower for LAP due to the collateral given, and very often business owners overlook this opportunity due to apprehensions on documentation and delays in sanction.
Loan Against Securities
Loans Against Securities is available in the form of an overdraft facility which is pledged against financial securities like shares, units and bonds. Loan Against Shares/Bonds/Mutual Funds is basically a loan wherein you pledge the securities you have invested in as collateral against the loan availed. This product comes handy when you have significant market investments which are typically long term in nature. Instead of selling the securities, you can keep them as collateral to raise funds.
A home loan, also referred to as a mortgage, is money borrowed to finance the purchase of a house. A loan that's used to purchase a home is commonly known as a mortgage. A home loan or housing loan is a form of secured loan availed to purchase a residential house/apartment or a plot of land for construction of a residential house. The property itself serves as collateral for the loan. It can also be taken or renovation, extension and repairs to your existing residential house. It has a fixed tenure and is repaid by Equated Monthly Instalments (EMI) over the sanctioned tenure. Home Loans are very popular among home-buyers due to the ease of transacting and the lower cost of borrowing.