For Manufacturers
Funding for Manufacturers — Term Loans, CC, Machinery Finance & CGTMSE
Manufacturing needs the right mix of term loan, working capital, machinery finance and BG limits. We structure the complete facility stack.
What we structure for manufacturers
Term loan (capex)
For plant, building, expansion. 5–10 year tenure, secured. Bank or NBFC. We negotiate rate, tenure, and prepayment terms.
Cash credit (working capital)
Revolving limit against inventory + receivables. 12-month renewable. We help with drawing power computation and monthly stock statements.
Machinery finance
Asset-backed loan for specific equipment. Lender holds lien on the machine. Lower rate, tenure matches asset life. We match you to the right asset finance company.
BG / LC limits
Non-fund-based limits for procurement (LC for raw material imports) and contracts (BG for tenders). Saves cash outflow.
CGTMSE-backed loans
Collateral-free up to ₹5 Cr under the Credit Guarantee scheme. We help with the eligibility check and the guarantee registration process.
LAP for factory premises
If you own the factory or another property, LAP at 9–12% p.a. for major capex or refinancing costlier debt.
Typical manufacturer engagement
- Full file diagnosis across 6 pillars — CIBIL, banking, ITR, GST, obligations, collateral
- Asset cover computation — total secured loans ÷ net owned assets
- Combined DSCR analysis across existing + proposed facilities
- Stock and receivables statement preparation (with stock age analysis)
- Order book documentation — confirmed orders, principal relationships
- Shortlist 1–2 lenders based on sector appetite and ticket size
- Negotiation of rate, tenure, drawing power, margins
- Post-disbursement support — monthly stock statements, RCC reviews, renewals
Common manufacturer scenarios
Manufacturers we've structured financing for
Auto components manufacturer, ₹15 Cr turnover
Needed ₹4 Cr for new CNC line. Structured: ₹2.5 Cr machinery finance at 11% (lien on CNC) + ₹1.5 Cr LAP against factory at 10%. Blended rate 10.6% vs 16% unsecured alternative.
Pharma manufacturer with sector exposure cap
PSU bank had sector exposure cap on pharma. Pivoted to private bank + NBFC consortium: ₹3 Cr term loan + ₹2 Cr CC at blended 12% (vs 18% if forced to fintech).
Small manufacturer with weak ITR but strong cash flow
Tax-optimised ITR was killing bank DSCR. Took 6-month ITR cleanup approach + CGTMSE-backed ₹1 Cr term loan at 11% (collateral-free, government-guaranteed).
Established manufacturer consolidating multiple loans
₹3 Cr across 5 expensive loans (avg 17%). Consolidated into ₹3 Cr LAP at 10.5% + ₹1 Cr CC at 11%. Saves ₹18 L/year in interest.
FAQ
Common questions
How do you decide between term loan, CC and machinery finance?+
By use of funds. Term loan for plant/building/long-term capex (5–10 year tenure, secured against property). CC for working capital (revolving, against stock + receivables). Machinery finance for specific equipment (asset-backed, lien on the machine). The mix depends on what you're buying — rarely is one facility right for everything.
Can you help with CGTMSE for a new manufacturing unit?+
Yes — CGTMSE is one of the most useful instruments for manufacturers. Up to ₹5 Cr collateral-free, with the Credit Guarantee Trust providing cover. Most banks and NBFCs offer it. The processing is slightly longer (guarantee registration) but the absence of collateral requirement is a major advantage. We handle the eligibility check, the documentation, and the guarantee registration.
I have an existing CC and want to increase the limit — can you help?+
Yes — CC renewals and enhancements are a common engagement. We review your current drawing power, your stock and receivables growth, and approach your existing lender (or a new one) for an enhanced limit. Often a fresh lender will offer a significantly higher limit at a competitive rate if your file has improved since the original CC was sanctioned.
Next step
Get your file reviewed before you apply again.
Share basic details — a senior advisor will read your profile, diagnose what's blocking approval, and tell you exactly what to fix first.
- No CIBIL pull until strategy is agreed
- No blind portal submissions
- Review by a senior advisor — not a call-centre agent
Explore further
Continue your funding readiness journey
Funding Readiness Assessment
Score your business against the 6 pillars lenders actually evaluate.
Why Loan Applications Get Rejected
The 8 silent killers behind approval failures — and how to fix each.
Tax Planning for Loan Eligibility
How ITR & GST decisions today decide your borrowing capacity tomorrow.
Business Loan vs LAP
Which structure actually fits your cash flow, risk and tenure.
Credit Profile Improvement
From low CIBIL or rejection to a fundable file — the structured way.