The corporate banking segment we serve a diverse clientele, ranging from small- to mid-sized local businesses with a few million in revenues to large conglomerates with billions in sales and offices across the country.
- Project Financing
- Working Capital Financing
- Trade Financing
- NPA Restructuring Advisory
The financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure where project debt and equity used to finance the project are paid back from the cash flow generated by the project.
As many existing companies look to expand their business and their manufacturing facilities. The basic choices in financial options are “off-balance sheet” or “limited recourse” financings. This is done either through the traditional project finance model, industrial revenue bond financings, or through specialized leveraged leases or other structured equipment and facility financing.
C&M Lending Resources Team is very experienced in counselling clients in evaluating structures to accomplish the desired goal. This experience in structured finance for industrial companies is an integral part of our finance practice.
SME And Large Corporate Finance
Setting up a manufacturing unit requires funds from various sources and as such promoters/owners may not be able to fund the entire project on their own. The entire manufacturing unit cost is taken into consideration except land. Primary security would be the project and the collateral security requirement will be based on various criteria’s such as company profile, nature of business, industry, demand, promoter’s background etc.
We are in the place of industries wise services to SME unit
• Manufacturing industries
• Automobile industries
• Chemical industries
• Food Processing
• Agro industries
• Pharma industries
Real Estate Finance
A very attractive and customized project-specific funding at a cost-effective interest rate can be arranged for Real Estate Builders and Developers based on their estimated cash flows for construction of a particular project. Construction finance is given for construction of one specific project and is to be utilized strictly for the same project.
The funding can be structured and customized according to the needs of the builder’s requirement. The funding arrangement will be to the maximum value of the project. The kind of projects where funds are arranged include construction on freehold land, SRA Projects, Redevelopment Projects, Joint Ventures etc..
• High Rise Luxury Apartments
• Business Parks / Office Complexes
• Shopping Malls And Shopping Canters
• Theme Parks / Entertainment Canters
• Private Industrial / Hi-Tech Parks
Each infrastructure project is unique and has its own cash flow needs and hence requires customized funding solutions. We at C&M understand the project and its cash flows in detail and accordingly arrange the most cost effective finance. Our lending solutions includes Bank guarantee, LC, Working capital and equipment finance. Tenure for such projects could range from 1 year to 15 years and moratorium period can also be provided based on the project cash flows.
• Generation/Transmission of Power
• Developing Roads, Ports & Airports
• Laying/maintaining pipelines for gas, water, etc
• Setting of SEZ and Industrial Park
• Telecommunication services
• Irrigation projects, water treatment plants, sanitation
• Hospital, educational institutions etc.
Real Estate Inventory Finance
Most businesses that experience rapid growth are faced with a gap between collections from customers and higher cash requirements to increase production, develop their sales capacity, pay suppliers and meet payroll. It takes time for growth to result in cash flow and working capital. If you don’t want to miss out on profitable sales and large orders, Inventory Finance can help settle cash flow issues by unlocking the value tied up in your stocks of finished goods. We advance up to 60% of the current value of your finished goods in stock.
Working Capital Financing
C&M Resources uses its relationship network with all the banks and institutions to tie up working capital facilities for our clients. The limits would be arranged either through the multiple banking routes or through the consortium route, depending upon the size of the facility.
Clean Overdraft is an overdraft facility wherein overdraft amount can be utilized for working capital needs. The primary security herein is the property and stock and debtors are considered as collateral security. Further, there is no requirement of submission of monthly stock statement and calculation of monthly drawing power, since the stock statement is to be submitted annually.
Working Capital Term Loan
A Working Capital Term loan is a loan from a bank or financial institution for a specific amount that has a specified repayment schedule and a fixed or floating interest rate. Term loan is for equipment, real estate or working capital paid off between one and 15 years. The loan carries a fixed or variable interest rate, monthly or quarterly repayment schedule, and set maturity date.
The loan requires collateral and a rigorous approval process to reduce the risk of repayment. A term loan is appropriate for an established small business with sound financial statements and a substantial down payment to minimize payment amounts and total loan cost.
Cash Credit is a facility to withdraw the amount from the business account even though the account may not have enough credit balance. The limit of the amount that can be withdrawn is sanctioned by the bank based on the business cycle of the client and the working capital gap and the drawing power of the client. This drawing power is determined, based on the stock and book debts statements submitted by the borrower at monthly intervals against the security by hypothecating of stock of commodities and/ or book debts. Banks create the charge on current assets on the company namely debtors and stock in case of Cash Credit facility and client has to submit monthly Stock Statements basis which Drawing Power is derived. The client cannot use more funds than the actual Drawing Power Limit even though the Sanction Limit is more.
Collateral Free Lending
For a SME unit, obtaining working capital with machinery loan without security can be beneficial. Business equipment is the most crucial asset for a business because it determines the amount of goods that can be produced and the cost of production of those goods. Timely upgrade and good maintenance of machinery and equipment’s ensures that the business stays competitive and profitable. C&M Capital Resources is dedicated to providing equipment finance loan to SME Unit so that they find no impediment to growth. Our collateral free loan without security is ideally suited for SME unit.
Trade finance signifies financing for trade, and it concerns both domestic and international trade transactions. A trade transaction requires a seller of goods and services as well as a buyer. Various intermediaries such as banks and financial institutions can facilitate these transactions by financing the trade.
It is our endeavour to help you take your products and business global. Our Export Finance service is customized to supplement the funding gaps in your working capital cycle. Export Finance services include both pre-shipment and post-shipment credit which is offered in INR and Foreign currency
Pre Shipment Finance
Pre Shipment Finance is issued by a financial institution when the seller want the payment of the goods before shipment. The main objectives behind pre shipment finance or pre export finance are to enable exporter to: Procure raw materials. Carry out manufacturing process. Provide a secure warehouse for goods and raw materials. Process and pack the goods. Ship the goods to the buyers. Meet other financial cost of the business.
We help business arrange pre – shipment financing from banks, Institutional & Non Institutional Investors.
Post Shipment Finance
Post Shipment Finance is a kind of loan provided by a financial institution to an exporter or seller against a shipment that has already been made. This type of export finance is granted from the date of extending the credit after shipment of the goods to the realization date of the exporter proceeds. Exporters don’t wait for the importer to deposit the funds.
We help business arrange post – shipment financing from banks, Institutional & Non Institutional Investors.
Import lending is the capital that is used to bring goods into the country. Import transactions can be a significant burden on a company’s cash-flow because the delays and complications often involved mean money is paid out long before the goods are delivered.
A financial solution that provides access to cheap foreign funds, availed to the importer. BC facilitates simple payments against imports on the specified due date. The short term credit transaction is based on a bank guarantee (LC) by the importer’s bank. The rates quoted by the overseas financial institution is close to libor rates, making it cheaper than the general interest rates.
Advantages Of Buyer's Credit:
• Payments on due date
• Any form of trade finance (collections, open account or Lc’s)
• Choice of funding currency
• Extended payment period to the importer
Letter Of Credit
Letter of credit is used in both International and Domestic transactions. Due to the nature of international dealings including factors such as distance, differing laws in each country and difficulty in knowing each party personally, the use of letter of credit has become a very important aspect of international trade.
The bank also acts on behalf of the buyer (holder of the letter of credit) by ensuring that the supplier will not be paid until the bank receives a confirmation that the goods have been shipped. Further, letter of credit is a cost-effective source of finance for working capital as the bank only charges commission as against interest in case of Cash Credit or Overdraft facility.
Supplier’s credit is an importer’s product, where importer is unable to make at sight payment to Exporter and the Importer needs a credit period. Importer’s bank commits to pay usance bill under LC to an overseas bank on due date as per LC terms. Thus, allowing importer to bargain better rates and giving credit period.
Advantages Of Supplier's Credit:
• Better bargaining power on account of immediate payment
• Access to funds at cheaper cost (Linked to LIBOR/EURIBOR)
• Better cash flows
• Off balance sheet products
The Bank Guarantee is an instrument which business partners use to strengthen and/or secure an obligation in their underlying contract. By issuing the Guarantee, the Bank offers a security to the Beneficiary, that is separate from the Principal’s ability or will to fulfil his part of the contract. A Bank guarantee provides substantial comfort to the beneficiary for establishing contracts with suppliers and contractors.
NPA Restructuring Advisory
We C&M having separate team who is specialising in Asset Reconstruction and NPA resolution with its excellent relationship with ARC Institutions and Private lender. It has executed scores of transactions in this segment with its proven track record in structuring resolutions and negotiating settlements with Institutions, Funds and Banks.
We believe that openings lost are business lost. There are situations in modern business environments that demand enterprises to be agile and seek support for un-anticipated financial situation. For such special situations where opportunities should seldom be missed, C&M brings to the table innovative solutions to address the urgent needs of the business with a fresh perspective. In cases where the existing management is hard pressed for liquidity with loads of debts, we would be in a position to manage this complex situation and at the same time help the company in question with renewed business focus through various means.
C&M Resources is restructuring advisory spans both traditional corporate debt restructuring as well as restructuring of complex debt instruments such as foreign currency loan as well as private lender.