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Case Study – Growing Business and short of collateral

A growing business unit based in a Tier II City of Karnataka, India, engaged in the field of Servicing of Fire Extinguishers, Fire Hydrant System and Fire Alarm System. The business unit has been established for more than two decades. The unit was also distributor for a well-known international firefighting brand solution for Karnataka.

Being a fast-growing business, the working capital requirement is growing with every order. The promoters have exhausted the co-lateral requirement as required by the existing working capital financing Bank and need financial support to encash the on the bulging order book.

The Automated Assessment Model, post analysing the past financial performance, order book in hand, existing sanctioned limit by the existing financier, current cash flow position and co-lateral suggested ₹ 98 Lakh of additional fund requirement for smooth running of the business in the next one year. The assessment model also suggested 9 private Banks and NBFCs who can extend such amount without insisting on co-lateral. The client’s requirement has been fulfilled in 16 days time with help of our on the field business partners.

The client business has grown 39% in next 6 months with the help of the additional fund.