Debt syndication involves a group of lenders funding various portions of a loan to a single
borrower. A syndicated loan is a structured product that needs to be arranged and
administered effectively. This is usually done by a third party or a consulting firm since
there are a number of lending parties involved.
Syndication solutions and syndicated solutions were initially used by Fortune 500 companies
that required large amounts of funds for their projects. Today, however, SMEs and large
corporations frequently seek syndicated loans.
Leasing
& Financing
Project Finance
Structured Finance
ECB (External Commercial Borrowing)
Restructuring
OTS
Working Capital Arrangement
Partner & Investor buyout financing
Lease financing is one of the important sources of medium- and long-term
financing where the
owner of an asset gives another person, the right to use that asset against
periodical
payments. The owner of the asset is known as lessor and the user is called
lessee.
The periodical payment made by the lessee to the lessor is known as lease
rental. Under
lease financing, lessee is given the right to use the asset but the ownership
lies with the
lessor and at the end of the lease contract, the asset is returned to the lessor
or an
option is given to the lessee either to purchase the asset or to renew the lease
agreement
Project finance is the funding (financing) of long-term infrastructure, industrial projects, and public services using a non-recourse or limited recourse financial structure. The debt and equity used to finance the project are paid back from the cash flow generated by the project.
Structured finance is a financial instrument available to companies with complex financing needs, which cannot be ordinarily solved with conventional financing. Traditional lenders do not generally offer structured financing. Structured financial products, such as collateralized debt obligations, are non-transferable.
External Commercial Borrowings (ECB) refers to the debt shouldered by an eligible entity in India for solely commercial purposes, that has been extended by external sources, i.e. from any recognized entity outside India. These borrowings are expected to conform to norms and conditions put forth by the RBI.
Corporate debt restructuring refers to the realignment of a business entity which is under fiscal distress due to its outstanding commitments and obligations and to infuse liquidity into business operations to keep it afloat. This process is generally done by the creditors and the management of the company, which is under distress.
The One-time Settlement (OTS) tool is used by lenders to recover dues from individuals with a default payment history. The lender agrees for a one-time settlement amount which will be lower than the total amount due. As a borrower, you need to repay the agreed amount at once within the time you are given to do so.
A working capital loan is a loan that is taken to finance a company’s everyday operations. These loans are not used to buy long-term assets or investments and are, instead, used to provide the working capital that covers a company’s short-term operational needs.
Partner buyout financing is funding that one partner uses to
purchase the
ownership stake of another partner. You can finance a partner buyout in many
ways—using a
partner buyout loan, your own funds, or by selling your partner’s shares in the
business to
investors.
Because partner buyouts are often expensive, partner buyout loans are a popular
option for
small business owners who need to buy out their partner(s).
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