The manpower, staffing, security, and facility management industry is a rapidly growing sector in India, playing a crucial role in supporting businesses across various industries. MSMEs in this sector provide essential services such as workforce outsourcing, payroll management, housekeeping, security services, maintenance, and infrastructure management. With increasing demand from corporate firms, government institutions, and industrial sectors, MSMEs in manpower and facility management are witnessing steady growth.
Despite its potential, this sector faces unique financial challenges due to the nature of its operations. Unlike manufacturing industries, manpower and staffing businesses do not have physical inventories or tangible assets that can be used as collateral, making it difficult to secure traditional bank loans. This limitation results in lower funding eligibility, which restricts their ability to scale operations, meet payroll obligations, and manage working capital efficiently.
a. Working Capital Funding
- Cash Credit Facilities: Helps businesses manage payroll cycles, employee benefits, and operational expenses efficiently.
- Overdraft Facilities: Provides short-term liquidity to cover immediate financial obligations, ensuring smooth business continuity.
- Invoice & Bill Discounting: Enables companies to convert pending invoices into immediate cash, reducing the burden of delayed payments.
- Bank Guarantees: Often required for securing large contracts and government tenders, ensuring credibility and financial backing.
Capstone has structured working capital solutions ranging from INR 3 crore to 250 crore, ensuring uninterrupted business operations for MSMEs in this sector.
b. Long-Term Funding
- Term Loans for Business Expansion: Provides financial support for hiring additional workforce, upgrading service capabilities, and expanding operational reach.
- Commercial Property Loans: Supports MSMEs in acquiring office spaces, training centers, and operational hubs for efficient service delivery.
Capstone has facilitated long-term funding transactions for manpower and facility management MSMEs, helping businesses invest in infrastructure and growth.
c. Structured MSME Funding Options
- Bridge Funding (Unsecured Loans): One of the most vital financial tools for MSMEs in the manpower and facility management sector, bridge loans provide immediate short-term capital without requiring collateral. This is especially beneficial for businesses facing payroll gaps due to delayed client payments or seasonal demand fluctuations. Capstone arranges unsecured bridge funding between INR 2 crore to 25 crore, ensuring seamless cash flow and uninterrupted workforce management.
- Margin Funding: Supports businesses in covering financial gaps when working capital requirements exceed available funding sources.
- Performance-Based Financing: Tailored funding solutions based on revenue projections and contract commitments, ensuring sustainable business growth.
Capstone specializes in structuring customized financial solutions for MSMEs in manpower, staffing, security, and facility management, ensuring they receive the right funding at the lowest cost with structured repayment plans.
Special Funding Options
MSMEs registered under “Make in India,” “Start-up India,” and Udyam qualify for special financial incentives, including lower interest rates, subsidies, and priority funding schemes.
With the right financial support, MSMEs in manpower, staffing, security, and facility management can expand their service capabilities, maintain steady cash flow, and contribute to India’s growing demand for outsourced workforce solutions.
