Background
A mid-sized electronics manufacturer in South India with a 25-year legacy was facing a liquidity crunch. Despite annual revenues crossing ₹70 crore, its cashflows were strained due to delayed receivables. The company needed immediate working capital to fulfill ₹12 crore in export orders, but its relationship banks demanded hard collateral and personal guarantees.
Challenge:
The founders risked losing long-term contracts and credibility if deliveries were delayed. Conventional financing channels moved too slowly and carried terms that were restrictive, with collateral requirements that would tie up family assets.
Senatio's Approach:
Our team conducted a rapid diagnostic within 72 hours. We reviewed receivables, GST filings, and export order pipelines. The financials were strong, but the client’s case needed to be packaged for institutional lenders in a way that de-risked them.
Senatio prepared a bank-facing dossier that highlighted forward cashflows, historic repayment discipline, and export credit cover. In parallel, we engaged three private banks and NBFCs, positioning the mandate as a competitive bid.
Outcome:
Within 9 days, the client received sanction of a mid–eight-figure INR loan, collateral-free, at an interest rate 3–4% lower than the market average. Disbursement allowed the company to clear supplier dues, meet export deadlines, and even expand its order capacity.
Broader Lesson:
MSMEs that digitize compliance (GST trails, digital invoicing, receivable tracking) create leverage. Collateral-free lending is no longer an exception; it is available to disciplined operators who present their case correctly.
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