Capacity is full. Expansion needs capex and working capital together.
The plant is running at capacity and customers are asking for more volume. Expansion needs machinery, civil work and a larger working-capital cycle to run it — funded at the same time.
Where most of these mandates start.
The plant is running at capacity and customers are asking for more volume. Expansion needs machinery, civil work and a larger working-capital cycle to run it — funded at the same time.
Financing capex without resizing working capital simply moves the constraint: new capacity comes online with no cash to feed it.
How capital providers actually assess this.
Manufacturing credit is assessed on capacity utilisation, order visibility, raw-material and inventory cycle, and the incremental cash flow the expansion is expected to generate.
The right structure funds equipment on asset-matched tenor, civil work on longer-tenor debt, and simultaneously enhances the working-capital limit for the higher run rate — usually with import LCs or supplier credit for machinery.
The parameters this is assessed against.
- Ticket size
- ₹5 Cr – ₹300 Cr
- Turnover
- ₹15 Cr and above
- Vintage
- Three years of audited financials
- Security
- Plant and machinery, land and building, current assets
- Timeline
- 8–14 weeks to sanction
What has to be on the table.
- Audited financials for the last three years plus latest provisional numbers
- GST returns and bank statements for the last 12 months
- Company profile, shareholding pattern and group structure
- KYC of the entity, promoters and directors
- CMA data — historical and projected fund flow, ratios and working-capital assessment
- Existing facility sanction letters, repayment track and security details
- Schedule of collateral with valuation and title documents
- Capacity utilisation data and expansion plan
- Machinery quotations, import documentation and installation timeline
- Order book and key customer contracts
- Raw-material sourcing arrangements and inventory policy
We understand the capital requirement, structure the transaction and take it to the right capital providers.
Understand the requirement
Total funding need across machinery, civil work and the incremental working-capital cycle the expansion creates.
Structure the transaction
Tenor-matched capex debt, LC and supplier-credit lines for equipment, and a simultaneous enhancement of working-capital limits.
Take it to the right capital providers
Institutional lenders, equipment financiers and structured credit providers with manufacturing appetite.
Term sheets, negotiation and closure
We run competing term sheets side by side, negotiate pricing, covenants and security, manage diligence, and stay on the mandate through documentation and disbursement.
Answers before the first call.
How should a manufacturer fund an expansion?
As a single package — tenor-matched debt for machinery and civil work, plus a simultaneous working-capital enhancement sized for the higher run rate once the capacity is live.
Can imported machinery be financed?
Yes, commonly through import letters of credit, buyer's credit or supplier credit alongside the term facility, subject to applicable regulations.
What do lenders look at in manufacturing credit?
Capacity utilisation, order visibility, customer concentration, raw-material and inventory cycle, and the incremental cash flow from the expansion.
Share the requirement. We will tell you candidly whether it is fundable, and how.
Senior-led review under a mutual NCND. No retainer — engagement is success-linked. Prefer a detailed brief? Use the full funding requirement form.