Case Study 1
Manufacturing company looking for Margin Funding for Machinery Purchase in an urgent situation
Executed Successfully in December 2024
Company Background:
The customer, based out of Surat, Gujarat, is into Manufacturing of Packaging material for the Pharma Industry with a 100cr+ Turnover, good profits and has HDFC Bank as their parent banker.
Requirement:
The company wanted to import a manufacturing line worth 50cr from Germany. The lead time for the machinery is of around 18 months. However, they were offered the machinery within 3 months by the supplier if they could book the machine and pay 10cr immediately within 15 days as a confirmation amount. Their parent bankers HDFC Bank could not commit to do the sanction and disbursement within the said timeline and the client was a position where he would not be able to make the payment in the committed timeline and lose the opportunity
Capstone’s Solution:
We arranged a funding of 9.5cr for the client with sanction and disbursements in 11 working days. The client arranged the remaining 50 Lakhs and was able to make the committed payment successfully. This funding was arranged without requiring any collateral from the customer and was given in the form of Term Loans for Machinery Purchase
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Funding of 9.5cr given in 11 working days from Documentation to Disbursement
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No Collateral requirement
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Since this was an advance payment, no charge could be created on the machinery either
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The remaining 40cr of the cost of machinery could be financed by a machinery loan by mortgaging the machine, hence allowing the company to purchase a 50cr machinery without any own margin contribution.
