Corporate Finance
Corporate Finance
Corporate finance is directly related to the company decisions having a financial impact. This includes the funding of a business to maximise profits and balance between long term and short term financing requirements. In addition to financing the capital investments, corporate finance also takes care of the need for funds required daily.
The corporate finance function looks into financing the funds required for projects and operations at the least cost of capital. A higher portion of the debt may increase the default risk. At the same time, a higher amount of equity may lead to a low return on capital.
Project finance:
Project finance is funding industrial projects and capital investment using a non-recourse or limited recourse financial structure. When a company opt for organic growth or greenfield expansion, it needs funds to finance the projects. Funds can be arranged in the form of equity or debt.
While looking at project finance – corporate finance has to decide whether to fund it with equity or debt. The debt or equity used to fiancé the project has to be paid back over a period of time, and the payback calculation is done accordingly. We assist the companies in arranging the loan as per decided financial leverage and helping them in the organic growth of their business.
For Project finance, we collect relevant information about the project, evaluate its viability, preparing a business plan and cash flow with sensitivity analysis. Post this, we design an information memorandum followed by a meeting with lenders. We negotiate the term sheet with the selected lenders and get the loan disbursed. We work as a bridge between the company and lenders.
Working capital Finance :
Working capital is the lifeline of any business, and any deficit herein will jeopardise the company’s ability to run the day to day business. We assist our clients by arranging traditional working capital loans, bill discounting on a recourse and non-recourse basis. To overcome the cash crunch situation, we use the customised solutions based on the company’s requirement at the least possible cost of debt.
Working capital sources mainly include cash credit limit from banks, buyers / suppliers credit , Working capital term loan, overdraft facility, etc. For this, we have a reach to banks, NBFCs, lending platforms and financial institutions.