Business Finance & Credit Services Overview

The instrument should match the asset it funds. Working capital — stock and debtors — is funded by a cash-credit/OD facility backed by a CMA report, priced at the bank's working-capital rate. Capex is funded by a term loan secured against the asset, with the DPR and DSCR analysis the bank requires. Receivables are best funded on TReDS, where the buyer's acceptance converts the invoice into near-cash at a discount. NCDs are a public-route substitute for bank debt, with the Companies Act filing burden and the debenture redemption reserve under s.71.

Each route carries its own statutory tail. Bank credit needs no ROC filing. An NCD issue triggers the s.42 private placement route, PAS-3, MGT-14, the trust deed, and the s.71(3) debenture redemption reserve. Any secured borrowing — bank or debenture — creates a charge that must be registered under s.125 within 30 days, or the security is void against other creditors.

The most expensive mistake in business finance is matching the wrong instrument to the need: raising an NCD at issue cost to fund a two-month receivable gap, or borrowing long-term to fund inventory that turns every 45 days. The second most expensive mistake is the unregistered charge — s.125 Companies Act 2013 makes an unregistered charge void against the liquidator and other creditors, so a lender's security silently disappears in a distress scenario.

The advisory exists to avoid both: the instrument is chosen on the asset being funded and the company's qualification, the documents are prepared to the lender's or SEBI's format, and every statutory step is filed inside its deadline. The same disciplined financials that make a company bankable also make it rating-ready and NCD-ready — the instruments compound rather than conflict.