Term loan & Working capital for new and existing entities
Term Loans is offered to businesses to meet their capital expenditure for the new or expansion of existing units. Normally these loans are available for construction of Factory Building, Purchase of Machinery and equipment and any other long term purpose.
Term loans will be given for a period of maximum 72 months. We may get some Moratorium period (Holiday period) during the construction stage. However, a maximum period one can avail the loan will be 108 months (door-to-door tenor).
The repayment will be on a monthly basis either in Equated Monthly Instalments (EMI) or Principle with Interest.
In other words, Working capital is normally provided to meet for day to day operations and short term in nature. Banks provides working capital loans based on the gap between various current assets and current liabilities.
The assets acquired against Term Loan and various current assets ( Present & Future) will be part of primary security and also need to provide other property as collateral security.
It is very much important to assess correctly the long term and short term requirements of loan and accordingly the loan structuring needs to be designed, any deviation in usage of Short term loan for loan term purposes will ignite red flags . INCITE will help you assess the correct requirements and quantify the facility required for the project. Our service also includes identifying and communicating alternate funding options which suit the requirement.