Many small and medium enterprises face challenges in mobilizing capital for their business. This challenge is much more severe for start-up businesses. The challenge comes from the fact that SMEs always have limited owned capital available to start a business and sustain it during initial tough years. Coupled with this is the fact that banks and financial institutions ask for collateral before deciding to fund SME business.
To help SMEs, Central Government has formed a trust called CGTMSE (Central Government Trust for Medium & Small Enterprises), who gives guarantee to Banks for providing collateral free loan to this type of business who does not have collateral security to offer.
Target / Eligibility
Type of Finance
WE (SR Corporate Services Pvt Ltd) are a consultancy firm based in Andheri (Mumbai). We helps business in getting finance from Nationalise Bank viz, State Bank of India, Central Bank, Corporate Bank etc. in the form of working capital and term loan.
Apart from these services we also offers a comprehensive range of services as a One Stop Solution for an entity; these services are as under,
S R Corporate Service Private Limited (SRCSPL) is engaged in providing the financial solutions to various SMEs in India particularly in Mumbai & Thane through various financial institution and Banks. Our Financial solution products have a wide range for various business needs.
In general, project finance covers green field industrial projects, capacity expansion at existing manufacturing units, construction ventures etc.
We are dealing into various types of the products and generally deal with Nationalise Bank only. Following are some of the products,
Working Capital Finance
Every Corporate/Firm/Entity requires working capital finance to meet the entire range of short-term fund requirements that arise within their day-to-day operational cycle.
Working capital loans can help company in financing inventories, managing internal cash flows, supporting supply chains, funding production and marketing operations, providing cash support to business expansion and carrying current assets.
Working Capital Finance can be in the form Cash Credit, Book Debts, Factoring (Bill Discounting), Letter of Credit or Bank Guarantees etc.
Cash Credit / Book Debts : This limit is known as cash credit / OD limit. This facility is granted against the security of goods in stock or sundry receivables.
Factoring : Factoring is a method of raising short-term finance for the business in which the business can take advance money from the bank against the amount to be realised from the debtors.
Letter of Credit / Bank Guarantee : A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount.
Bank Guarantee is a mode of satisfying an individual or a corporation into financial commitments in a business transaction between a buyer and a seller.
Term facility is provided by the Bank to various Business entities in order to carry out the capital expenditure. The various types of Capital Expenditure includes Plant erecting, Purchase of machinery, Expansion of existing capacity or any other capital purpose. Generally Term loan is given for a period from 3 to 7 years depending upon the size of the investment and repayment capability of the company.
Loan Against Properties
A loan against property (LAP) is exactly what the name implies, a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property's market value, usually around 40 per cent to 65 per cent. Loan against property belongs to the secured loan category where the borrower gives a guarantee by using his property as security. The purpose of the loan is not definite; one can use it for personal or commercial as well. In certain bank this product is designed to meet the requirement of entry level entrepreneur, who does not have any track record of business. They can use this product by way of term loan or working capital facility. Purpose of the loan is to encourage SME green field projects which are at inception and because of lack of capital they could not grew. Procedure involves in this product is relaxed a bit and also rate of interest charged and processing fees is quite attractive. Once the loan is availed the same can be converted into a regular limit after certain period and of course, depend upon financial performance of the company.