Portfolio Buy Outs & M&A

Identify Opportunities

Prepare funding plan and help in execution

Rating Advisory

Work with rating agencies and credit enhancement providers

Company rating is not a limitation in fund raising


Slice and dice the funding into forms acceptable to different investors

Fund raising through portfolio sale, securitised paper, CPs, loans and receivable finance

Fintech Advice

Identify Technology related fixes to manage costs

Develop specs, facilitate integration and other tech solutions

Vendor Proposition: Expand Investor Base to Capital Markets

  • Traditional financiers like Banks have higher capital cost due to regulatory and other restrictions.
  • Non conventional sources like MFs have lesser capital restrictions, and might offer better pricing
  • Alienates obligor risk from the transaction
  • Funding structure is bank/lender agnostic so appeal to wider base of investors.
  • Structure scalable to include longtail vendors

Dealer Proposition: Use Insurance to De-risk

  • Current Receivable Finance models do a name by name credit assessment and adoption of the Buyers.
  • Seller would insure the portfolio of receivables under a credit insurance policy.
  • The Seller would pay Bank/ NBFI if it receives the proceeds of the receivables + insurance (if receivable defaults).

  • RBI Regulations
  • All receivable purchases by banks / NBFI in India are governed by the RBI guidelines on Factoring. It Should be as per Factoring Act.
  • Factoring can be on a with recourse or without recourse basis.

  • IRDA Regulations
  • IRDA does not allow the issuance of a trade credit policy to banks / NBFI.
  • IRDA allows the “assignment of proceeds” of a trade credit insurance policy in favor of banks /NBFI.

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