Fundraising for Non-Banking Financial Companies (NBFCs) and Microfinance Institutions (MFIs) for Term Loans (TL) focused on Onward Lending typically involves methods such as Direct Assignment (DA), Pass-Through Certificates (PTC), and Co-Lending with banks or financial institutions. These avenues help secure the necessary funds while ensuring compliance with regulatory standards .
Term loans are a type of long-term financing that businesses use to cover significant capital expenditures like equipment, real estate, or expansion projects, with fixed repayment terms and interest rates. Working capital, on the other hand, represents the short-term funds necessary for daily operations, including expenses like payroll, inventory, and utilities. Both term loans and working capital play pivotal roles in a company's financial strategy
Venture debt is a financing strategy tailored for startups and high-growth businesses. It provides loans or credit lines, allowing these companies to secure additional capital without giving up ownership. Venture debt complements equity funding, extending their financial runway and helping manage cash flow. It's an attractive option for firms looking to scale and invest in growth without diluting equity stakes, making it a valuable component of their capital structure.
