Grow your business without giving up any equity
Syndicated loan refers to an arrangement between two or more banks to provide credit facilities to a business. This is done by the banks as a syndicate, using common debt documents. For SMEs, this is the most promising route to any type of credit facility, whether a term loan, working capital facility, bank guarantee or any loan against property.
Syndicated loan is a good way for a business to get the money it needs to grow while allowing the entrepreneurs to maintain 100% ownership. Do note, however, that as these loans must be backed by collateral, businesses with meagre assets would not be able to apply.
Our professionals will prepare a project report for your business by converting your raw data into presentable documents after fully understanding your needs. Once this is done, you may either opt for our advisory package (recommended), which means that we will only advise while you follow up with the bank, or for our fund-raising service, under which we will have a vendor assist you every step of the way.
A syndicated loan can give you access to various types of bank loans. Banks offer facilities designed to meet the needs of almost any kind of funding requirement, be it working capital funds, capital expenditure, business acquisition, bridge or short-term funding, unsecured lending and so on.
Our professionals will understand your requirements and suggest solutions based on the information provided. If you are interested in going ahead, we will finalise the scope of work and terms of the mandate.
The most crucial step in the process, a seasoned industry veteran will prepare projections and a detailed project report. You will also need to provide various documentation at this point, such as annual reports, income tax returns, bank statements and board resolutions. All the raw data will be converted into the format understood by the lenders.
We will advise you on the banks you should approach. This will be based on which banks (i) are bullish for the sector, (ii) will consider the security, (iii) past relations, (iv) success rates, (v) speed of approvals, (vi) approval hierarchy and many more. It is important to systematically approach lenders phases with maximum of five banks in each phase. It is this step that decides the success of the proposal. We will submit the application and, based on feedback, fine-tune the proposal.
Constant follow-up with each lender is very important. As every bank has its own set of guidelines to evaluate any given proposal, each will have a separate set of queries to be resolved. At this stage there will be multiple to and fro between bankers, syndicators and clients.
On securing in-principal approval, negotiations with bankers on terms of deals such as pricing (interest rates & fees), tenor, repayment schedule, moratorium period, covenants and so on would assume. The sanction letter would be received from the bank at this stage.
Before the funds are released, certain compliances need to be fulfilled. The bank would require NoC letters from various stakeholders, drawdown requests, unqualified financial/legal due diligence certificates, compliance with all CPs to the loans. Simultaneously, the drafts of all loan documents would generally be circulated for review to all parties. After all the documents are vetted and signed, the funds will be released.
Over the first five days, we will ask for in-depth information about your business loan requirements such as nature of business, promoters, management background, financial reports, loan amount details, end usage etc.
Once we have all the information we need, we will begin framing the proposal. Within 10 working days, we will be able to deliver an end-to-end proposal for a syndicated loan that will be professional enough to submit to the bank.
Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.
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