Services

"Light meals" for Growth Hungry Entrepreneurs:

Finstone Partners promise a quick relief for budding cash trapped entrepreneurs and companies who have the business potential but are not being able to scale-up or maintain a growth in spite of prevailing opportunities. We, Finstone Partners undertake immediate processing and best in class terms (maximum loan at lowest rate of interest with easy and relaxed repayment) making things easy, efficient and commercially viable. The following services can be availed by our clients within our quick-bites services:

  • Term Loan
  • Business Loan
  • Equipment financing
  • Mortgage Loans
  • LAP – Loan Against Property
  • Corporate Funding
  • Project funding
  • Structure funding
  • Private funding against shares
  • Private funding against property
  • Working capital Limits fund/non fund base
  • Home Loan
  • Used car loan
  • Lease Rent discounting
  • BILL Discounting
  • Non recused factoring
  • MSME Loan
  • Construction Loan
  • Real estate funding
  • Real estate project equity funding

The deliverability and construction of obligation is typically a vital aspect for guaranteeing that drawn out development destinations are met. Our experience and market presence gives us personal information on the proper financing choices. Our extensive warning administrations in this space include:

Our wide scope of warning administrations in this area include

  • Prompting enterprises, foundations and sovereign substances on the design of new obligation issues and the renegotiating of existing commitments
  • Prompting on obligation market openings and condition
  • Giving guidance and organizing of obtaining finance for a wide range of corporate exchanges including consolidations and acquisitions and utilized buyouts
  • Giving counsel on renegotiating of acquisitions to supplant transient money with more productive long haul comes closer from the banking or capital business sectors
  • Making and supporting in executing charge effective financing, including both homegrown and cross-line renting exchanges
  • Giving counsel on renegotiating of resource based organizations and the plan and financing of novel methodologies in seller financing.

In offering you target guidance, we try to

  • Backing your dynamic with clear investigation of accessible alternatives and procedures
  • Give market insight comparable to the key obligation markets, items and counterparties — acquainting you at whatever point required with central participants in the obligation capital business sectors
  • Establish a serious climate
  • Arm you for arrangements with brokers and financial backers
  • Exhort you all through the exchange cycle — from starting system through to execution
  • Assist you with dissecting your choices, address the effect of elective financing courses on your business and goals
  • Work with your current warning group, giving an expert viewpoint on subsidizing related issues
  • Give talented asset to do the hard work
  • Offer our insight into the scope of expected lenders, their hunger and their disposition to credit, estimating and structure.

Obligation re-organizing is an interaction that permits a private, public or a sovereign element confronting income issue, to lessen and reevaluate its delinquent to improve or reestablish liquidity and restore so it can proceed with its activities. Obligation re-organizing normally include a decrease of obligation and augmentation of installment terms.

Obligation partnership for greater tasks/development plan and so forth:

Obligation partnership is a game plan made between at least two banks/monetary foundations to give the borrower a credit office utilizing normal obligation archives.

Finstone Partners goes about as arrangers of advances a lot to its corporate customers. Finstone Partners' dish India organization and phenomenal liking with Financial Institutions (FIs) empower quick partnership of obligation and obligation instruments. We get ready amazing Corporate Profiles, Financial Profiles and Information Memoranda for Loan Syndication for which we have won a few awards. Our introductions have been very much valued by Financial Institutions and our administrations in Loan Syndication have been acclaimed brilliant by a few of our fulfilled customers.

Obligation trading is accessible to the organizations who are now benefiting a current office for example term credit or C.C. limit from a Bank/Financial establishment, yet at a higher pace of revenue. We mastermind a similar office at a lower pace of interest for our customers. Aside from that we likewise upgrade as far as possible on a similar guarantee, in case its reasonable worth is more than the past appraisal rates.

ECB (External Commercial Borrowings) is an instrument utilized in India to help the admittance to unfamiliar cash by Indian organizations and PSUs (Public Sector Undertakings). ECBs incorporate business bank advances, purchasers' credit, providers' acknowledge, securitized instruments, for example, Floating Rate Notes and Fixed Rate Bonds and so, using a loan from true fare credit offices and business borrowings from the private area window of Multilateral Financial Institutions like International Finance Corporation (Washington), ADB, AFIC, CDC, and so forth ECBs can't be utilized for interest in securities exchange or hypothesis in land. For foundation and Greenfield projects, subsidizing up to half (through ECB) is permitted. In telecom area as well, up to half subsidizing through ECBs is permitted. Outside Commercial Borrowings (ECBs) incorporate bank advances, providers' and purchasers' credits, fixed and coasting rate securities (without convertibility) and borrowings from private area windows of multilateral Financial Institutions like International Finance Corporation.

The DEA (Department of Economic Affairs), Ministry of Finance, Government of India alongside Reserve Bank of India, screens and directs ECB rules and strategies. In India, External Commercial Borrowings are being allowed by the Government for giving an extra wellspring of assets to Indian corporate and PSUs for financing development of existing limit and just as for new speculation, to increase the assets accessible locally. ECBs can be utilized for any reason (rupee-related use just as imports) aside from interest in financial exchange and theory in land.

ECB GUIDELINES: The significant part of ECB strategy is to give adaptability in borrowings by Indian corporate, simultaneously keeping up with reasonable cutoff points for all out outside borrowings. The core values for ECB Policy are to keep developments long, costs low, and energize foundation and fare area financing which are significant for in general development of the economy. The ECB strategy centers around three perspectives:

  • 1. Qualification measures for getting to outer business sectors.
  • 2. The complete volume of borrowings to be raised and their development structure.
  • 3. End utilization of the assets raised.
  • External Commercial Borrowings (ECBs) are defined to include commercial bank loans, buyers' credit, suppliers' credit, securitized instruments such as Floating Rate Notes and Fixed Rate Bonds etc., credit from official export credit agencies and commercial borrowings from the private sector window of Multilateral Financial Institutions such as International Finance Corporation (Washington), ADB, AFIC, CDC, etc.
  • ECBs are being permitted by the Government as a source of finance for Indian Corporate for expansion of existing capacity as well as for fresh investment.
  • The policy seeks to keep an annual cap or ceiling on access to ECB, consistent with prudent debt management.
  • The policy also seeks to give greater priority for projects in the infrastructure and core sectors such as Power, oil Exploration, Telecom, Railways, Roads & Bridges, Ports, Industrial Parks and Urban Infrastructure etc. and the export sector.
  • Applicants will be free to raise ECB from any internationally recognized source such as banks, export credit agencies, suppliers of equipment, foreign collaborators, foreign equity-holders, international capital markets etc. offers from unrecognized sources will not be entertained.

Inter-Corporate Deposits (ICD) is an unsecured borrowing by corporate and FIs from other corporate entities registered under the Companies Act 1956.

The corporate having surplus funds would lend to another corporate in need of funds. This lending would be an uncollateralized basis and hence a higher rate of interest would be demanded by the lender. The short term credit rating of the corporate would determine the rate at which the corporate would be able to borrow funds. Further the credit spreads demanded even for the top rated corporate would be higher than similar rated banks and the rates on ICDs would be higher than those in the Certificate of Deposit (CD) market. The tenor of ICD may range from 1 day to 1 year, but the most common tenor of borrowing is for 90 days.

Standby letter of credit (SBLC) can be used to secure a variety of transactions where third party guarantees of payment may replace a cash or bond deposit. Transactions that are typically secured by a Standby letter of credit include:

lease, mortgage, performance bond

Funding against shares is short term funding that allows the promoters of the listed company to raise funds/debt against their shares.

Foreign Direct Investment (FDI) is defined as a company from one country making a physical investment into building a company in another country. It is the establishment of an enterprise by a foreigner. The FDI relationship consists of a parent enterprise and a foreign affiliate which together form a multinational corporation (MNC).

Private equity (PE) is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange. Investments in private equity most often involve either an investment of capital into an operating company or the acquisition of an operating company. Capital for private equity is raised primarily from institutional investors. There is a wide array of types and styles of private equity and the term private equity has different connotations in different countries.

Our approach to the market place enables our professionals to have a deep understanding of private equity funds. This allows us to provide truly independent advice on buy outs. We provide objective and unbiased counsel on buy outs and we do this from the perspective of our firms' clients whether it is the management team, private equity house or exiting vendor. PA CAPITAL PARTNERS’s Corporate Financiers are fluent and insightful across the buy out process, including

  • Transaction feasibility
  • Equity capital raising
  • Debt capital raising
  • Deal structuring
  • Pricing
  • Negotiating with vendors, finance providers and management teams
  • Effective project management to successful closing.

Our involvement in buy out processes ranges from assisting management teams in business planning, to assessing key issues to be addressed in a buyout, to recommending equity and debt partners for a management team, through to advice on deal tactics and negotiations.

Private equity transactions can be complex, with a number of moving parts. Our advice helps to ensure that the myriad of issues that are peculiar to a private equity transaction can be dealt with at the right time to deliver a successful completion.

We are hands on advisers and bring a wealth of experience to bear for the benefit of our firms’ clients. Our extensive knowledge of private equity drivers, approaches and structures, in both sell and buy side situations means that we have delivered value time and time again for our clients.

We are intimately familiar with the private equity market and have worked closely with a range of global private equity firms. This contact network and breadth of experience helps ensure that clients receive advice that is independent, well rounded, thoroughly commercial and informed.

Venture capital (VC) is a broad subcategory of private equity that refers to equity investments made, typically in less mature companies, for the launch, early development, or expansion of a business. Venture investment is most often found in the application of new technology, new marketing concepts and new products that have yet to be proven.

Packing credit limit is a facility sanctioned to an exporter in the Pre-Shipment stage. This facilitates the exporter to purchase raw materials and manufacture or produce goods according to the requirement of the buyer and get it packed for onward export. Packing Credit limit covers all the working capital needs of the exporter including raw materials, wages, packing costs and all pre-shipment costs. Packing credit limit is available generally for a period of 90 days and the exporter has to pay lower rate of interest compared to Overdraft or Cash Credit facility.

Letter of credit is a document issued by a financial institution, used primarily in trade finance, which usually provides an irrevocable payment undertaking. Letters of credit are used primarily in international trade transactions of significant value, for deals between a supplier in one country and a customer in another.

Bank Guarantee is an indemnity letter in which the bank commits itself in writing to be legally bound to pay a certain sum if its party fails to perform or if any other form of default occurs.

Factoring

A trade finance mechanism whereby an exporter sells its export receivables (bills of exchange or promissory notes, or simply issued invoices, which the exporter is selling on an open account basis) at a discount. The company purchasing the receivables is called a factor. Factors are normally specialized financial services companies, but many are owned by banks. Normally, after the factor has purchased a receivable, the importer or buyer pays the factor directly. Some factors actually issue the invoices to buyers and, in effect, operate the exporter's sale ledgers. Some factors operate on a non-recourse basis i.e. they assume the risk of nonpayment. Less frequently, the factor will take recourse to the exporter for all or part of the sums involved in the event of nonpayment or delayed payment by the buyer.

Buyer's credit

Buyer's credit is the credit availed by an Importer (Buyer) from overseas Lenders i.e. Banks and Financial Institutions for payment of his Imports on due date. The overseas Banks usually lend the Importer (Buyer) based on the letter of Credit (a Bank Guarantee) issued by the Importers (Buyer's) Bank. In fact the Importers Bank brokers between the Importer and the Overseas lender for arranging buyers credit by issuing its Letter of Comfort for a fee. Buyers credit helps local importers access to cheaper foreign funds close to LIBOR rates as against local sources of funding which are costly compared to LIBOR rates.

LC Discounting

LC Discount is Letter of Credit Discount. The Letter of Credit from the prime banks or financial institutions is considered as a complete security. A Letter of Credit is a letter from Bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. Lets consider that the consignee wants to pay you after 90 days after it reaches him. But you want to be paid immediately after the documents are accepted. The banks will offer to pay you on a discount basis, meaning that they deduct a percentage from the value owing to you, which they keep as the cost of discounting; you get paid immediately the value less that the discount.

Internal credit rating

Credit rating assesses the credit worthiness of an individual/corporation. It is an evaluation made of a borrower overall credit history. Credit rating is calculated from financial history and current assets and liabilities. Typically, a credit rating tells a lender or investor the probability of the subject being able to pay back a loan

Infrastructure Finance

  • Though the procurement of finance for infrastructure projects is complex, highly competitive, costly and time-consuming process, we simplify and customize it, saving significantly on both time and monetary parameters.
  • Create a commercial framework for the infrastructure projects in such a way that it attracts the interest of-quality bidders and investors.
  • Calculations and workings are projected in a simple way to the prospects so as to enhance their understanding of the subject and hence increase the chances of their positive response to your infrastructure project report.

roject finance is the long term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of the project sponsors. The loans are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cash flow, rather than from the general assets or creditworthiness of the project sponsors, a decision in part supported by financial modeling.

The funding is typically secured by all of the project assets, including the revenue-producing contracts. Project lenders are given a lien on all of these assets, and are able to assume control of a project if the project company has complications complying with the loan terms.

Lease Rental Discounting (LRD) is a term loan offered against rental receipts derived from lease contracts with corporate tenants. The loan is provided to the lessor based on the discounted value of the rentals and the underlying property value.

Under the Lease Rental Discounting program, the loan amounts disbursed by a bank or an institution will be a function of the customer’s monthly rental receipts, balance tenure of the lease and the value of the property among other factors. This product offering is specifically targeted at owners of prime commercial properties that are leased out to reputed lessees. The EMI (equated monthly installment) offered to a customer is set as a percentage of the total monthly rentals being earned on the collateral. The overall loan amount will be restricted to 55% of the property’s valuation. This is a competitive customer offering with loans being offered through quick processing, subject to customer meeting the Bank’s criteria.

Promoter funding is offered to promoters of the companies against their share holding in their respective company. With the help of this facility the promoter can increase the share holding or use in expansion and diversification of the business.

Benefits

  • Increase promoters holding in the business with the use of existing stake
  • Meet liquidity requirement for expansion and diversification of business
  • Easier and faster processing
  • Promoters do not have to liquidate their holdings to meet short-term cash requirements
  • Promoter can increase their stake through buying at lower price