CORPORATE

Cash Credit

BCSPL offers financial services to avail Cash Credit (CC) facility to enabling an enterprise to carry out business transactions.

Under Cash credit facility, a line of credit is provided to the borrower on the basis of his projected level of sales, inventories, receivables and cash requirements. This is also known as “Credit Limit” granted by the bank. This facility is operated in the same manner as overdraft facility. This facility is granted for financing current assets such as stocks & debtors/receivables of the firm/company.

It is always advisable for a business unit to avail this limit as compared to mortgage loan since the interest is charged on per day and amount utilization basis. Also a mortgage loan is granted to individual or a company which is more than 3 years old. Whereas we help our new entrepreneurs who have vintage even less than 1 year to avail this limit.

FEATURES AND BENEFITS

  • Interest to be charged on Utilization basis.
  • Interest to be charged only for number of days the amount is utilized.
  • No Pre-Payment penalty.

Overdraft Facility

BCSPL offers financial services to avail an overdraft (OD) facility enabling an enterprise to carry out business transactions without any hypothecation on current assets.

Major SME being still not aware of Overdraft facility, they pledge their valuable assets for a loan where repayment option is only EMI which hampers the cash flow of the firm/company. In an EMI repayment, interest is charged on the whole loan amount irrespective of whether the amount is fully utilized or not. But In an OD facility interest is charged on the utilized amount vis-a-vis number of days the amount is been utilized.

FEATURES AND BENEFITS

  • Interest to be charged on Utilization basis.
  • Interest to be charged only for number of days the amount is utilized.
  • No Pre-Payment penalty.

Machinery & Equipments

Balaji Credit services Pvt. Ltd. (BCSPL) facilitates Small Medium Enterprises (SME′s) and Corporate to avail loans to purchase machinery and equipments from leading NBFC and Banks without any additional collateral security or property.

With our long standing experience in debt syndication we encourage them to expand and compare with best loan products available in India. “Considering that major clients do have issues pertaining to margin since all financial institutions fund only 75% of the cost of machinery and equipments, we do have margin arrangements in form of short term loans for margin funding. In all we can help or clients get 100% of the value of machinery and equipments and facilitate growth of our clients irrespective of shortfall of capital or margin”.

FEATURES AND BENEFITS
  • Subsidy from government on machinery Loans for manufacturing units.
  • No Pre-Payment penalty.
  • No vintage required (Age of the firm can be less than 1 year).
  • Eligibility on projected Profitability.
  • Loans can be arranged to the tune of 100% of the project cost for vintage units.
  • Term Loans in Foreign currency for imported machinery.
  • Letter of Credit (LC) facility for imported machinery.
  • Buyers Credit (BC) facility for imported machinery.

Foreign Currency Term Loan

Balaji Credit services Pvt. Ltd. (BCSPL) has observed that many SME′s and Corporate have imported plant and machinery with Indian Currency in form of loan or from their own sources.

BCSPL has specific product for such clients in form of Foreign Currency Term Loans (FCTL. Under FCTL these SME′s and Corporate can import machineries in foreign currency thus resulting in very low cost of interest vis-a-vis increased profitability.

FEATURES AND BENEFITS
  • Subsidy from government on machinery Loans for manufacturing units.
  • No Pre-Payment penalty.
  • Eligibility on projected Profitability.
  • Loans can be arranged to the tune of 100% of the project cost.
  • Rate of Interest as low as 6.5% to 9%

Leasing Finance

Leasing Finance enables you to add and build your revenue generating capacities. In operating lease, the financial institution purchases the asset from the identified OEMs and lease the same. This helps the firm/company to generate revenues instantly and reap the benefit of paying for the same over a period of time. Even the current cash flows of the firm/company are not affected since most of the payments made comes from incremental revenues generated by the new asset.

FEATURES AND BENEFITS
  • No Pre-Payment penalty.
  • Eligibility on projected Profitability.
  • Loans can be arranged to the tune of 100% of the project cost.
  • But back option available.

Invoice/Bills Discounting

BCSPL offers assistance for Invoice/Bill Discounting for vendors to large Corporate. The term invoice discounting′ or bills discounting′ or purchase of bills′ are all same. Invoice discounting is a source of working capital finance for the seller of goods on credit. Major SME are stuck due to extended corporate debtors/receivables cycle which is generally minimum 30 days to maximum 180 days.

Bill discounting is an arrangement whereby the seller recovers an amount of sales bill from the financial intermediaries before it is due.

FEATURES AND BENEFITS
  • No additional collateral security/property to be pledged.
  • Receivables/Debtors up to 180 days considered.
  • Repayment after Debtors/receivables realization.
  • Bills to be collected by FI′s on due date.
  • Both Domestic and Export Bills discountable.
  • No NOC required from existing Banks.

Loan Against Bank Guarantee

Bank guarantee is a non-fund based instrument which is not convertible into the fund based which can be helpful for companies to purchase raw material when the actual working capital limit is fully exhausted.

BCSPL helps companies to avail funds and even raw material against unutilized Bank Guarantee limits.

Features & Benefits:

  • Lowest Rate of Interest.
  • No upfront service charges.
  • No maximum limit restriction.
  • Interest calculation on per day utilization basis.

Letter of Credit

Letters of credit have been used for centuries to facilitate payment in international trade. Their use will continue to increase as the global economy evolves. A letter of credit is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. 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 letters of credit has become a very important aspect of international trade.

FEATURES AND BENEFITS
  • No Pre-Payment penalty.
  • Eligibility on projected Turnover.
  • No vintage required (Age of the firm can be less than 1 year).
  • No interest charged.
  • Only opening charges applicable.
  • Can also be in Foreign Currency.

Letter of Credit (LC Discounting)

Discounting of Letter of Credit (LC) is a short-term credit facility provided by the bank. LC discounting is actually a term used for ease in place of ‘LC Bill Discounting’, which means discounting of a bill backed by LC. In this arrangement, the sale of goods is made by the client on the strength of usage of the term ‘Export Letter of Credit (LC).’ Sellers may request that a buyer obtain a letter of credit from a financial institution prior to shipping goods. This is done to protect the seller against non Payment and the merchandise.

FEATURES AND BENEFITS
  • No Pre-Payment penalty.
  • Eligibility on projected Turnover.
  • No vintage required (Age of the firm can be less than 1 year).
  • No interest charged.
  • Only opening charges applicable.
  • Can also be in Foreign Currency.
  • No Collateral Security required.

Buyers Credit

Buyer credit is a short term credit available to an importer (buyer) from overseas lenders such as banks and other financial institution for goods they are importing. The overseas banks usually lend the importer (buyer) based on the letter of comfort (a bank guarantee) issued by the importer′s bank. For this service the importer’s bank or buyer’s credit consultant charges a fee called an arrangement fee.

Buyer′s credit helps local importers gain access to cheaper foreign funds that may be closer to LIBOR rates as against local sources of funding which are more costly.

The duration of buyer′s credit may vary from country to country, as per the local regulations. For example, in India, buyer′s credit can be availed for one year in case the import is for tradeable goods and for three years if the import is for capital goods.

FEATURES AND BENEFITS
  • No Pre-Payment penalty.
  • Eligibility on projected Turnover.
  • No vintage required (Age of the firm can be less than 1 year).
  • Can also be in Foreign Currency.

Export Packing Credit

Packing Credit is nothing but a pre-shipment finance given to exporters with a low interest rate to boost exports. A packing credit loan will often be extended if a letter of credit has been issued by purchaser of the products that is based in another country or a confirmed order for exporting the goods exists.

Packing Credit is a pre-shipment finance given by bank to procure raw materials and arranging goods ready for export.

FEATURES AND BENEFITS
  • No Pre-Payment penalty.
  • Eligibility on projected Turnover.
  • Only opening charges applicable.
  • Can also be in Foreign Currency.