Debt Syndication

Debt Syndication

For any business – large corporation / small and medium enterprises, a judicious mix of long-term and short-term funds is of prime importance to maintain smooth functioning of the operations and maintain healthy liquidity.

Long term financing

Long term financing is required for modernization & expansion of existing product lines as well as diversification into new geographies or product lines. These ventures need sizable funds which cannot be financed, in entirety, by the promoters at all times. Besides, having such ventures funded through long term loans also reduces the aggregate “cost of capital”. Long term financing allows businesses to stabilise the expanded / new business lines and increase the cash flows. The presence of moratorium as well as spaced out repayment schedule also helps companies to fund these initiatives and maintain healthy cash flow position, during the project execution phase. These long-term funds also reduce the dependency on the internal cash generation as well as decrease the pressure on promoters to infuse more equity, by diluting their equity stake.

Short term financing

Short term finance is primarily required to fund the working capital needs of the business. Though it is of a shorter tenure, generally less than a year, it is recurring in nature. Working capital acts as a lubricant to the fixed asset in the business. A well-oiled machinery provides best of the results and also leads to lesser wear-n-tear. An adequately funded working capital by a proper mix of internal accruals as well as short term funds provides much needed balance to the financial stability of the business in the medium term.

In an ever-evolving competitive business scenarios, timely availability and cost-efficient source of funds is very crucial. MP Financial Advisory Services understands the long term as well as short term needs of corporates and helps them to raise funds in a timely fashion, aiming for a win-win situation for borrowers as well as lenders.

Having a robust background of credit risk assessment of about 14 years, MPFASL thoroughly understands the credit profile of the borrower and acts as a bridge between borrower and lender by removing the information asymmetry as well as introducing various safeguarding mechanism for the financers.

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