Our NPA Funding for Corporates offers alternative financing options for corporate companies that are looking to resolve their stressed loan accounts, require finance for OTS (One-Time Settlement), take over existing NPA loans or secure additional funds for smooth business operations.
When a corporate loan account turns into a Non-Performing Asset (NPA), it can create serious financial challenges for a business. Increasing interest & penalties, pressure from lenders, legal recovery proceedings and restricted access to conventional finance can affect business operations and future growth. Moreover, their complex financial structure (lending) and involvement of multiple loan facilities make it difficult to resolve the NPA matter.
At NPA Finance Company, we offer customised financial solutions for corporates targeting to resolve complex financial liabilities while managing the multiple lenders involved. Our team is well-versed in NCLT & DRT proceedings, which are generally involved by lenders to recover the loan.
Our approach focuses on understanding the company’s current financial position, understanding available security, evaluating the NPA outstanding or settlement options and offering suitable funding structures.
Whether your company is facing NPA & recovery issues, DRT or NCLT proceedings that require suitable financial support with documented approval to submit a resolution plan. We provide every possible support for corporates to manage legal procedures and, ultimately, close the stressed accounts, focusing on the future growth of the company through additional working capital support.
Specialised NPA Funding Solutions for Corporates
Corporate NPA cases involve substantial loan outstanding, multiple lenders, a mix of fund-based and non-fund-based financial arrangements. Unlike conventional businesses, these corporates require a well-planned financial structuring to resolve current issues, while also securing healthy business development.
Keeping all these complexities in mind, we offer multiple NPA funding solutions that can help resolve the stress situation with a combination of two or more or a stand-alone service, which can also be helpful.
NPA Loan Takeover
This facility offers takeover of bad debts by a new lender, which offers a structured repayment plan including balloon repayment, monthly EMI, and a moratorium period. The repayment tenor and plan are offered as per the company’s current position, future growth possibilities, supported by orders in hand and other sources of funds. The NPA loan takeover ensures the complete closure of NPA accounts with an option of improving credit history of the company.
OTS Funding
Financial assistance for companies seeking a one-time settlement (OTS) with their lenders to square off the NPA liabilities at reduced cost. OTS funding can be utilized for settlement with multiple banks & financial institutions. It is supported by a new repayment tenor with option of monthly EMI’s.
Corporate Debt Resolution
Structured funding solutions for corporates having multiple lenders and also having diverse loan facilities like fund-based & non-fund-based, for example, a mix of BG/LC, term loans, supply chain finance, and working capital limits.
Working Capital Infusion
Working capital is provided for managing the cash-flow gaps and future business expansion. This facility is provided only after the successful closure of all NPA accounts of the company. So, it should be combined with the NPA loan takeover or OTS funding.
NPA Project Financing
This is specifically designed for real estate projects that were classified as NPA and stalled for a long time or are facing a liquidity crunch for the smooth development of the project. In this facility, first, the NPA account is closed completely and then additional funds will be deployed in stages for the construction of the project. This also ensures the infusion of funding till the successful delivery of the project.
Post-NPA/OTS Funding
Many corporates face rejection of loan proposals due to past NPA or OTS issues that were closed, but are reflected in their CIBIL, downgrading their credit scores. As a result, traditional bankers refuse to extend loans to such companies.
So, we offer post-NPA loans to such companies or corporates requiring working capital for smooth operations or investing in a new project or machinery. We can offer fund-based facilities like term loans and OD/CC limits, along with a bank guarantee or LC.
NPA Funding for Large Corporate Accounts
Large corporate NPA accounts frequently require significant funding arrangements. These cases may involve multiple banking facilities, consortium lending, substantial collateral and complicated settlement requirements.
We help corporate borrowers explore funding possibilities for larger-ticket transactions, subject to financial evaluation, security assessment and lender approval.
Our focus areas include:
- Large corporate NPA accounts.
- Manufacturing and industrial businesses.
- Real estate and infrastructure companies.
- Construction and development projects.
- Hospitality groups and hotel businesses.
- Educational institutions and healthcare projects.
- Companies facing financial stress or business restructuring.
Our Approach to Corporate NPA Funding
At NPA Finance Company, we understand that every corporate NPA case has different financial and legal complications. Therefore, we focus on evaluating the complete proposal, including current financial strength, available securities, and offering a financial plan that ensures complete revival.
Our approach includes:
- Initial Case Assessment
We understand the company’s financial background, existing loan exposure, outstanding liabilities and immediate funding requirements.
- Financial and Security Evaluation
We assess the available property security, business operations, project status and repayment prospects.
- Funding Structure
Based on the case, we explore suitable options such as OTS funding, NPA loan takeover, property-backed finance or structured corporate funding.
- Documentation and Due Diligence
The required financial, legal and property-related documents are examined as part of the lender’s evaluation process.
- Approval and Disbursement
Once the proposed transaction receives the necessary approvals, funding is arranged according to the agreed terms and conditions.
Why Choose Us for Corporate NPA Funding?
Finding a suitable finance partner is crucial for corporate companies, as it involves a large number of workforce/employees, their contribution to the economy and corporate social responsibility.
A financing partner must be well-versed in such complex financial structures and resolution products. They also have an understanding of business finance and the challenges associated with NPA resolution.
We focus on helping companies explore NPA funding possibilities when conventional lending options are limited.
Key advantages of working with us include:
- Knowledge: Our team have deep knowledge of all legal aspects related to NPA accounts, such as the SARFAESI Act and DRT/NCLT procedures.
- Specialised NPA Finance Tools: A deep understanding of products required to resolve complex NPA exposure of corporates. We know how to merge different products to resolve multiple lenders and raise additional funds for expansion.
- Corporate-Focused Solutions: Funding strategies based on the current loan liabilities and operational requirements for a complete NPA revival & business growth.
- Large-Ticket Funding Requirements: Expert in handling large-ticket funding cases and strong lender associations for the same.
- Complete Resolution: Offers complete bad debt resolution and infusion of working capital that supports smooth functioning of the business.
- Transparent Process: Clear communication regarding eligibility, documentation and funding requirements.