Debt Financing

Debt Financing

Not every business wants to dilute ownership. Sometimes the smarter move is to raise capital through loans, credit lines, or structured debt. Debt financing helps businesses expand, manage working capital, upgrade technology, or bridge cash-flow gaps — without giving away equity.

We help startups, MSMEs, and growing companies choose the right debt instruments, get investor/bank-ready, and maintain clean compliance.

What is Debt Financing?

Debt financing means raising money that must be repaid over time, usually with interest. It’s ideal for companies that have predictable cash flows, strong business models, or short-term funding needs.

Common forms of debt include:

• Term loans (secured/unsecured)

• Working capital loans

• Invoice discounting / bill discounting

• OD/CC limits

• Venture debt

• NBFC and fintech loans

• Equipment financing

• MSME credit schemes

• Government-backed loan programs

Why companies prefer debt

• No equity dilution

• Fixed repayment structure

• Lower cost compared to giving up ownership

• Improves creditworthiness and financial discipline

• Ideal for bridging short-term or project-based requirements

• Can be combined with equity for balanced growth

When debt financing makes sense

• You have consistent revenue or receivables

• You want to avoid early equity dilution

• You need short-term capital to accelerate operations

• You have assets to leverage

• You want to complement existing equity with venture debt

• You’re preparing for scaling but need immediate liquidity

What we assist with

1. Debt Readiness Assessment

• Reviewing financials, compliance, and documentation

• Identifying gaps in statements, filings, and governance

• Improving credit profile and eligibility

2. Selecting the Right Debt Instrument

• Bank loans, NBFC loans, venture debt, or government schemes

• Comparison of interest rates, tenure, security, and conditions

• Structuring debt to avoid cash flow pressure

3. Documentation & Financials

• Business plans and cash-flow projections

• CMA data preparation

• Financial modelling & repayment planning

• Preparing bank/NBFC loan files

• Term sheet review and negotiation support

4. Compliance & Post-Sanction Support

• ROC filings (for charge creation/modifications)

• Covenants tracking & regular reporting

• DSRA, security documentation, and charge monitoring

• Lending compliance and documentation for renewal

Why founders choose professional debt support

• Better chances of loan approval

• Clean documentation and financial clarity

• Faster turnaround from banks/NBFCs

• Negotiation advantage on rates and terms

• Lower compliance risk

• Helps avoid over-borrowing or poor structuring

Documents usually required

• Company registration documents

• PAN, GST, Udyam, financial statements

• Bank statements (6–12 months)

• Income tax filings

• Projections and cash-flow

• KYC of directors

• ROC charge details (if any)

• Asset details, invoices, or purchase orders (for specific loans)

Our process

1. Understand business model and capital need

2. Assess eligibility and prepare documentation

3. Build financial projections and loan proposal

4. Support discussions with banks/NBFCs/lenders

5. Assist with sanction, charge creation, and post-loan compliance