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Finance & Investment Banking

Corporate Finance


Montblanc Sterling advises and facilitates fund raising for Medium Size Corporates through various structures such as:


  • Project Finance: It is usually long term financing for industrial and infrastructure projects based on projected cash flows of the project rather than on the balance sheet of the project sponsors. It is normally provided for a period up to 10 years other than Infrastructure sector.
  • Working Capital Finance: Short term finance to fund the gap in operating cycle of the business.
  • Medium Term Loan: Term loan for a specific purpose like equipment/machinery, finance, renovation, maintenance having specified repayment schedule and a floating/fixed interest rate for a period of up to 5 years on specific/ Pari-Passu Charge.
  • Corporate loan: Loans are both short and medium term in nature. Short term finance is raised to meet occasional liquidity constraints and is usually provided for a period up to 12 months whereas medium term finance is for general corporate purpose including normal capital expenditure having tenure up to 5 years.
  • Real Estate (Construction loan): Loans provided to Real Estate Developers for meeting their past cost towards their upcoming residential and commercial projects to part finance construction cost. Such loans usually carry tenure up to 5 years depending upon the projected cash flows.
  • Real Estate (Corporate loan ): Loans for Real Estate clients for general purpose to be utilized in their ongoing projects having a tenure up to 3 years.

Small and Medium Enterprises (SMEs) funding through various options which include:


  • Cash Credit : Cash Credit facility continues to be the most preferred and popular mode to meet day-to-day working capital needs. Cash Credit is provided against primary security of stock, debtors, and other current assets, etc., duly supported by collateral security of movable fixed assets, immovable property, personal or corporate guarantee.
  • Term Loan: A Term Loan is granted for a fixed term of not less than one year, and is intended normally for financing fixed assets acquired or to be acquired, and carries an interest at a specified rate scheduled for repayment in installments.
  • Factoring : A receivable's management and financing service designed to improve the seller's cash flow and to cover risk. This is best suited for financing trade and unlike other financing services, it normally requires no collaterals. Its two parts are:
    • Invoice Bill Discounting: Discounting of invoices in respect of the client's regular sales to them.
    • Purchase Bill Discounting: Discounting of suppliers' bills in respect of the client's regular purchases from them.
  • Letter of Credit (LC): A binding document through which a seller re-assures itself that the payment for the goods supplied will be honored by the buyer or its bank establishing such letter of credit. Basically, a Letter of Credit gives the seller reassurance that they will receive the payment for the goods supplied as per the terms of LC. In order for the payment to occur, the seller has to present the bank with the necessary shipping documents confirming the shipment of goods within a given time frame as per the terms specified.
  • Bank Guarantee: As part of Working Capital required, SME sector equally needs Bank Guarantee Facility in the form of Bid Bonds, Security Deposit, Mobilization Advance, Advance Payment, and Performance Guarantees. These guarantees either generate cash needed for the operating cycle and/or save outgo of cash as substituted by the Bank Guarantees issued by the Banker.
  • Buyers Credit: Under this arrangement Importer (Buyer) avails credit from overseas lenders i.e. Banks and Financial Institutions for payment of his imports on due date. The overseas Banks usually lend the Importer's (Buyer's) based on the Letter of Credit issued by the Importer's (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 cheaper foreign funds close to LIBOR rates as against local sources of funding which is comparatively costly.

Investment Banking


We provide following capital and fund raising services to our clients under Investment Banking by doing Financial Engineering of their Business model & financials.

  • Private Equity
  • IPO and Pre IPO Placement
  • Mergers and Acquisitions
  • QIP and Rights Issue
  • what we offer

    1

    Corporate Finance: Loans are both short and medium term in nature.


    2

    It is usually long term financing for industrial and infrastructure projects based on projected cash flows.


    3

    Short term finance to fund the gap in operating cycle of the business.