Debt Financing
Raise debt capital without diluting equity — term loans, working capital facilities, NCDs and venture debt structured and documented for lender approval.
Raise debt capital without equity dilution
Tell us your funding requirement and repayment capacity. We structure the right debt instrument and prepare lender documentation.
Talk to a CS →A complete debt financing support package
Credit Assessment
Revenue, cash flow and balance sheet assessed to determine debt eligibility and optimal structure.
Lender Identification
Banks, NBFCs, venture debt funds and DFIs identified based on your profile and ticket size.
CMA Data Preparation
Credit Monitoring Arrangement data, projections and financial statements prepared for bank appraisal.
Loan Documentation
Loan agreements, hypothecation deeds and security documentation reviewed before signing.
Working Capital Structuring
CC / OD / invoice discounting limits sized and documented for working capital needs.
NCD Issuance Support
Non-Convertible Debenture issuance structured for companies raising debt from institutional lenders.
What lenders look for before approving debt
Revenue Track Record
Most banks require at least 2–3 years of revenue history — startups need NBFC or venture debt.
Positive Cash Flow
Debt service coverage ratio (DSCR) above 1.25 is the minimum for most lenders.
Collateral or Guarantee
Banks typically require collateral security or a personal guarantee from promoters.
Audited Financials
2–3 years of audited accounts are mandatory for bank loan appraisal.
Good CIBIL Score
Promoter CIBIL score above 700 is standard for most loan applications — defaults are disqualifying.
Clean Regulatory Status
No pending GST defaults, income tax demands or ROC penalties — clean compliance record.
Debt preserves equity ownership but requires repayment capacity. We model your DSCR and cash flow before approaching lenders — so you borrow only what you can comfortably repay.
Common issues in debt financing
Simple steps, no surprises
Creditworthiness assessed
Revenue, cash flow, CIBIL and collateral position reviewed before approaching any lender.
Lender matched
Bank, NBFC or venture debt fund identified based on your profile and ticket size.
CMA data and projections prepared
Financial statements and 3-year projections packaged for lender appraisal.
Loan documentation reviewed
Loan agreement reviewed before signing — key terms, covenants and prepayment clauses negotiated.
Other services you may need
Frequently asked questions
Debt financing means raising capital by borrowing money from banks, NBFCs or investors that must be repaid with interest over a defined period. Unlike equity, debt does not dilute ownership. Common instruments include term loans, working capital loans and NCDs.
Venture debt is a form of debt financing for venture-backed startups that may not qualify for traditional bank loans. It is typically offered by specialised NBFCs and venture debt funds alongside or after an equity round, using the equity round as implicit collateral.
CMA (Credit Monitoring Arrangement) data is a standardised financial analysis format used by banks to appraise loan proposals. It includes historical financials, projected P&L, cash flow statements and fund flow analysis — prepared by our team for your bank submission.
DSCR (Debt Service Coverage Ratio) is the ratio of your net operating income to your annual debt repayment obligation. A DSCR above 1.25 means you generate 25% more income than needed to service debt — the minimum comfort level for most lenders.
Early-stage startups without revenue or assets typically cannot get bank loans. Alternatives include NBFC loans, venture debt, MUDRA loans, CGTMSE-backed loans (no collateral) and SIDBI's startup loan schemes.
Ready to raise debt capital for your business?
We assess creditworthiness, identify lenders and prepare CMA data — so your loan application is approved the first time.