Running an industry leads to a lot of complications, be that a manufacturing or service industry. If we talk about the Service Industry, it includes providing services to businesses or final consumers, that comprises Information Technology Services, Tourism, Restaurants, Transportation, Health Care, Entertainments, Clothing Brands, etc. Being the most developing sector, the IT sector constantly requires funds for developing new software, starting a new company, and many others. But while asking for loans, the major gap they face is of the collateral.

Since these companies generally do not have fixed assets for collateral, they generally cannot opt for secured loans. Perhaps, the only assets that they possess are Intellectual Property Rights (IPR) which cannot be kept as collateral for finance. Therefore, these industries have to go to unsecured funding. We at Terkar Capital, provide hassle-free funding solutions in India. It is one of the most modernised and highly specialised finance facilitators that arranges the best suitable options for all our clients. Below is a list of products which we arrange for you:

Unsecured Business Loan: Having no asset as collateral, IT industries have to opt for unsecured funding. As the name suggests, unsecured loans are financed where the collateral security is absent, and the loan is provided based on the credit score of the borrower. Such a loan can be taken to overcome their short or long-term inconsistency in the operation. The Rate of Interest is comparatively high because of the absence of collateral, but Terkar Capital will arrange the reasonable cost of borrowing for you!

Eligibility criteria for Unsecured Business Loan:

1. Unsecured loans are granted to only creditworthy borrowers. i.e., according to their CIBIL score. A score of 750 is required by many lenders. A score between 650 to 750 is considered favourable, the companies with low CIBIL scores face huge issues for such a loan.
2. Another criterion is that the borrower company must have a specific turnover for applying unsecured funding (which varies according to the set criteria of different lending institutions)
3. The minimum age of the borrower should be 21 and the maximum 65.
4. The business should have been in operation for at least 3 years.

Services in unsecured business loans:

Following are a few of our services available in unsecured funding:

Business Term Loan: The term loan for business is available in both secured and unsecured ways. The type depends upon the availability of the collateral and needs to be repaid in the form of EMIs within a defined time period. This can be for the short-term, medium-term, or even long-term as per the various business needs of the company. The period from such a loan ranges from 1 to 5 years, which can go beyond 5 years. The loan can be availed for business high-cost investments like expansion, purchase of expensive plant and machinery, etc.

CGTMSE: The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), introduced by the Government of India in 2000. CGTMSE is a government-backed scheme for micro and small enterprises. The scheme can be granted to both the manufacturing and service industries. The scheme aims at strengthening the credit lending facility to industries facing funding issues.

Working Capital Finance: Many times it becomes difficult to manage finances, and there comes the need for funds. Small or medium enterprises face these issues more frequently. Here, working capital finance helps in such a scenario. Working Capital is the difference between the company’s current assets and its current liability. This type of finance helps one in short-term operations like purchasing raw materials, undertaking operational payments, etc. Hence, the Working Capital facility allows one to run its operations smoothly and efficiently. Below is the list of a few of our working capital instruments:

Cash Credit(CC): This facility enables customers to use the amount specified by the lender and pay interest only on the used amount. Here, the amount cannot exceed the sanctioned amount. The amount of CC depends upon the credibility of the borrower.

Overdraft facility: Overdraft is the financial instrument allowed by the bank for their customer that enables you to withdraw money from your bank account even if you do not have such a favourable credit balance. One cannot exceed the limit given by the bank.

Bill Discounting: It is a method of trading where the seller gets the amount in advance before the maturity of the bill at a smaller amount than its actual, i.e., at a discounted rate. The reasons for discounting can be the requirement of working capital requirement, paying dues, and many more. In simple words, Bill Discounting can also be termed as Short Term Loans against a bill as security.

Factoring: It is the financial instrument or debtor finance in which the seller sells its accounts receivable to a third party called ‘factor’ at a discount. There are three parties involved in such a transaction: a seller, a buyer, and a factoring company. In simple words, it is selling unpaid invoices for the requirement of instant cash.

LC Discounting: It is a guarantee given by the bank to pay the seller for the buyer’s obligation, in case a buyer fails to make the payment. LC discounting takes away the risk and gives assurance to the seller for the funds.

Bank Guarantee: Bank Guarantee is issued by the lender to the debtor to cover its liability in case of default by him. In case of the failure of payment by the debtor, the bank will pay on his behalf.

Why choose Terkar Capital?

Adequate funding is most essential for companies to operate the business and achieve growth. Under these circumstances, Terkar Capital’s financial products can be a quick solution to all the problems. These convenient and collateral-free funds can be used to address the urgent needs of finance and grow your business. So without having any second thought, approach Terkar Capital for both debt and equity funding solutions!