SME PAISA Advisory Architecture

Client Requirement → Product Framework

Indian promoters and CFOs face specific real-world operational challenges. We map your operational dilemma directly into the right banking credit instruments, repayment structures, and quantitative sizing tools.

12Core Requirements
45+Bankable Credit Products
50+Lending Partners
100%Unbiased Structuring
01
Fund-Based

Business Working-Capital Requirement

Money needed to run daily business operations

Client Operational Dilemma

"Money needed to run the business."

Cash is tied up in raw materials, production, and work-in-progress. Operational cash outflows occur daily, but customer collections arrive after weeks or months.

Core Financial Function & Mechanism

Finance the operating cycle and bridge the gap between purchase → production → sale → receivable → cash.

Typical Tenor: 12-Month Revolving / Multi-year ReviewTarget Scale: ₹2 Cr – ₹250 Cr+

Eligible Credit Products (9)

Security / Structure
CC / Cash CreditFund-Based
Secured on Stock & Book Debts
OD / OverdraftFund-Based
Secured on Property / Fixed Deposits
Working Capital Demand Loan (WCDL)Fund-Based
Sub-limit of WC facility
Working Capital Term Loan (WCTL)Fund-Based
Secured term facility
LAP for Working CapitalFund-Based
Secured by Real Estate Mortgage
Unsecured Working CapitalFund-Based
Unsecured / Cash Flow-based
Surrogate Working CapitalFund-Based
Banking / GST surrogate
Invoice DiscountingFund-Based
Assignment of Invoices
Structured Working CapitalFund-Based
Custom Consortium / Multi-Banking
SME PAISA Structuring Tip: Banks often assess MPBF (Maximum Permissible Bank Finance) based on Tandon/Nayak norms. SME PAISA helps model holding period benchmarks, optimize Drawing Power calculations, and carve out WCDL sub-limits to lower interest costs.
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02
Fund-Based / Factoring

Receivables / Cash-Flow Requirement

Sales are booming but client payments are delayed

Client Operational Dilemma

"Sales are happening but customer payments are delayed."

Goods or services are delivered, invoices are raised, but corporate buyers take 60 to 120 days to settle payments, choking working capital.

Core Financial Function & Mechanism

Convert future receivables into present liquidity.

Typical Tenor: 30 to 120 Days per Invoice CycleTarget Scale: ₹5 Cr – ₹500 Cr+

Eligible Credit Products (7)

Security / Structure
Invoice DiscountingFund-Based
Assignment of verified invoices
Bill DiscountingFund-Based
Accepted trade bills
Receivable FinancingFund-Based
Ledger-based or debtor-backed
SID / PID (Supply / Purchase Invoice Discounting)Fund-Based
Invoice verified by anchor buyer
TReDS-based FinancingFund-Based
Institutional MSME TReDS platform
Debtor-Backed FundingFund-Based
Charge on approved debtor book
Structured Receivable FundingFund-Based
Off-balance sheet / SPV or recourse-backed
SME PAISA Structuring Tip: Rather than blocking property collateral for overdrafts, debtor-backed structures monetize verified sales invoices. SME PAISA arranges recourse and non-recourse discounting lines via institutional private banks, NBFCs, and TReDS.
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03
Fund-Based & Hybrid Trade Credit

Inventory / Purchase Requirement

Procure bulk stock or raw materials at favorable prices

Client Operational Dilemma

"Money required to purchase stock, raw material or goods."

Suppliers demand upfront payment or short credit, but seasonal spikes or manufacturing lead times demand holding higher raw material and inventory levels.

Core Financial Function & Mechanism

Fund inventory and procurement without disrupting operating cash flow.

Typical Tenor: 60 to 180 Days RevolvingTarget Scale: ₹5 Cr – ₹300 Cr+

Eligible Credit Products (7)

Security / Structure
Cash Credit (CC)Fund-Based
Stock & inventory hypothecation
Overdraft (OD)Fund-Based
Secured or clean limits
Working Capital LoanFund-Based
Short-term procurement credit
Purchase FinanceFund-Based
Vendor invoice settlement facility
Inventory FundingFund-Based
Warehouse receipt / stock financing
Bill DiscountingFund-Based
Trade bills accepted for purchase
Supplier / Trade FinanceFund-Based
Supply-chain vendor financing
SME PAISA Structuring Tip: Holding excess inventory creates carrying costs of 18-24% annually. We structure supplier financing and inventory credit lines that align payment timing directly with inventory turnover cycles.
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04
Term Debt (Fund-Based)

Machinery / Capex Requirement

Acquire high-output machinery, plant, or capital assets

Client Operational Dilemma

"Buy machinery, plant, equipment or other fixed assets."

Upgrading machinery or acquiring capital equipment requires substantial capital that cannot be diverted from everyday working capital without starving business operations.

Core Financial Function & Mechanism

Finance long-term productive assets.

Typical Tenor: 3 to 7 Years (36 to 84 Months)Target Scale: ₹3 Cr – ₹500 Cr+

Eligible Credit Products (6)

Security / Structure
Machinery LoanFund-Based
Hypothecation on acquired machinery
Term LoanFund-Based
Charge on plant & machinery
Equipment FinanceFund-Based
Asset-backed equipment lease / hypothecation
Asset FinanceFund-Based
Fixed asset collateral
Loan Against Property (LAP)Fund-Based
Mortgage of immovable asset
Structured Capex FundingFund-Based
Combined asset charge + corporate guarantee
SME PAISA Structuring Tip: Never fund long-term assets with short-term overdrafts (the classic asset-liability mismatch). We structure equipment term loans with moratoria matched to installation, commissioning, and initial commercial production.
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05
Project Debt & Growth Capital

Business Expansion Requirement

Scale plant capacity, launch new geography, or set up facility

Client Operational Dilemma

"Expand capacity, geography, plant or business operations."

Expansion requires multi-crore investment across civil construction, plant setup, initial inventory, and team onboarding before revenue begins flowing.

Core Financial Function & Mechanism

Fund expansion while matching repayment with the expected cash-flow generation of the expansion.

Typical Tenor: 5 to 10 Years with Construction MoratoriumTarget Scale: ₹10 Cr – ₹500 Cr+

Eligible Credit Products (6)

Security / Structure
Term LoanFund-Based
Project asset charge
Loan Against Property (LAP)Fund-Based
Industrial / Commercial property
Project FinanceFund-Based
Greenfield / Brownfield escrow structure
Capex FundingFund-Based
Dedicated expansion debt line
Structured FundingFund-Based
Mezzanine / Subordinated debt structure
Working Capital EnhancementFund-Based
Expanded post-expansion limit
SME PAISA Structuring Tip: We prepare institutional Detailed Project Reports (DPR), financial projections, and DSCR simulations to negotiate 12-24 month interest moratoria until the new plant reaches operational breakeven.
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06
Limit Enhancement & Refinancing

Existing Bank Limit Requirement

Existing CC/OD limits are maxed out as turnover grows

Client Operational Dilemma

"Existing CC/OD limit is insufficient."

Top-line turnover has surged 30-50%, but your incumbent bank has delayed renewal or declined limit enhancements due to rigid collateral ratios.

Core Financial Function & Mechanism

Increase available borrowing capacity.

Typical Tenor: Annual Renewal with Enhanced LimitsTarget Scale: ₹5 Cr – ₹200 Cr+

Eligible Credit Products (7)

Security / Structure
CC EnhancementFund-Based
Enhanced stock & debtor drawing power
OD EnhancementFund-Based
Higher property valuation multiplier
Working Capital EnhancementFund-Based
Assessed MPBF increase
Additional LAPFund-Based
Second charge or fresh unencumbered asset
Top-Up FacilityFund-Based
Track-record-based top-up line
Balance Transfer + EnhancementFund-Based
Takeover by new lender with 30-50% step-up
Structured FundingFund-Based
Multi-banking consortium syndication
SME PAISA Structuring Tip: When your existing bank refuses an enhancement, a Balance Transfer (Takeover) to a growth-oriented private bank or PSU can immediately unlock 25% to 60% higher limits while simultaneously cutting 75-150 bps off interest rates.
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07
Secured Term Loan / Drop-Line OD

Property-Backed Funding Requirement

Unlock substantial long-tenor liquidity against owned real estate

Client Operational Dilemma

"Client has property and wants substantial liquidity."

Promoters own commercial, industrial, or residential properties with significant market value, but need high-quantum capital at low interest rates and flexible tenors.

Core Financial Function & Mechanism

Convert available property collateral into business liquidity.

Typical Tenor: 5 to 15 YearsTarget Scale: ₹2 Cr – ₹500 Cr+

Eligible Credit Products (5)

Security / Structure
Loan Against Property (LAP)Fund-Based
Mortgage on commercial / residential asset
Property-Backed Business LoanFund-Based
Property collateral + operational cash flows
Top-Up LAPFund-Based
Top-up on appreciated property valuation
Balance Transfer + Top-UpFund-Based
Refinance existing LAP with substantial liquidity step-up
Structured Secured FundingFund-Based
High-value multi-property cross-collateralization
SME PAISA Structuring Tip: Not all properties are valued equally by lenders. Industrial units, Lal Dora properties, and Gram Panchayat land have vastly different LTV limits. We structure property dossiers to maximize bank valuation and secure lowest possible interest margins.
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08
Unsecured / Cash Flow-Based Debt

Requirement Without Collateral

Raise business funding without pledging immovable property

Client Operational Dilemma

"Funding needed but collateral is unavailable/insufficient."

Asset-light manufacturers, traders, and service enterprises have strong banking credits and GST filings, but lack clear title real estate to mortgage with traditional PSU banks.

Core Financial Function & Mechanism

Assess repayment capacity primarily through business performance and cash flows rather than hard collateral.

Typical Tenor: 12 to 36 MonthsTarget Scale: ₹1 Cr – ₹100 Cr+

Eligible Credit Products (6)

Security / Structure
Unsecured Business LoanFund-Based
Purely cash-flow and vintage based
Unsecured Working CapitalFund-Based
Clean overdraft or short-term loan
Surrogate FundingFund-Based
Banking credit surrogate / industry benchmarks
Banking-Based FundingFund-Based
ABB (Average Bank Balance) multiplier model
GST / Turnover-Based FundingFund-Based
GSTR-3B & GSTR-1 turnover assessment
Cash-Flow-Based FundingFund-Based
Operating cash flow & escrow mechanism
SME PAISA Structuring Tip: We leverage banking credit velocity (ABB), GST filings, and CGTMSE government credit guarantees (covering up to ₹5 Cr without collateral) to build institutional comfort without encumbering promoter family assets.
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09
Short-Term Liquidity / Bridge Finance

Temporary / Urgent Funding Requirement

Fast liquidity to bridge sudden cash-flow timing mismatches

Client Operational Dilemma

"Short-term mismatch between cash inflow and cash outflow."

A critical tax payment, payroll cycle, vendor milestone, or unexpected supply order requires funding within 3-7 days, well before expected customer receivables materialize.

Core Financial Function & Mechanism

Bridge a defined timing gap.

Typical Tenor: 1 to 6 Months (30 to 180 Days)Target Scale: ₹3 Cr – ₹250 Cr+

Eligible Credit Products (6)

Security / Structure
Bridge FinanceFund-Based
Interim loan ahead of long-term disbursement
Short-Term LoanFund-Based
Bullet or short installment repayment
OD / Temporary OverdraftFund-Based
TOD on existing operational account
Bill / Invoice DiscountingFund-Based
Instant discounting of verified trade invoices
Emergency Working CapitalFund-Based
Fast-track NBFC working capital line
Structured Short-Term FundingFund-Based
Escrow-backed cash-flow bridge
SME PAISA Structuring Tip: Speed of execution is paramount for bridge capital. We maintain pre-vetted credit lines with specialized institutional NBFCs and fintech platforms capable of disbursing within 72 hours against verifiable business receivables.
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10
Debt Consolidation & Balance Sheet Restructuring

Debt Restructuring / Existing Liability Requirement

Consolidate high-cost, fragmented loans into manageable debt

Client Operational Dilemma

"Existing debt is expensive, fragmented or poorly structured."

Multiple high-interest unsecured loans, expensive NBFC borrowings, and fragmented monthly EMIs are severely straining operational cash flows and choking business growth.

Core Financial Function & Mechanism

Reorganize existing liabilities and potentially create additional liquidity, subject to lender assessment.

Typical Tenor: 5 to 10 Years (Stretched Amortization)Target Scale: ₹5 Cr – ₹300 Cr+

Eligible Credit Products (6)

Security / Structure
Balance TransferFund-Based
Takeover from high-cost lender to prime bank
Loan TakeoverFund-Based
Comprehensive debt buyout by incoming bank
Debt ConsolidationFund-Based
Bundling 4-8 fragmented loans into 1 single low-EMI facility
Top-Up FacilityFund-Based
Carve out surplus working capital during takeover
Refinance FacilityFund-Based
Repricing debt to lower market interest rates
Structured DebtFund-Based
Subordinated / mezzanine restructuring
SME PAISA Structuring Tip: A successful debt restructuring can reduce monthly debt outflows by 35-50% simply by stretching tenors from 24-36 months out to 84-120 months and shifting from 16-21% unsecured debt to 9.5-11% secured bank structures.
Inquire Facility
11
Hybrid (Fund-Based & Non-Fund-Based)

Trade Finance Requirement

Facilitate domestic and international trade contracts

Client Operational Dilemma

"Import/export or supplier/customer trade transaction."

Counterparties across borders or states require secure payment guarantees, import letters of credit, export pre-shipment liquidity, or post-shipment bill purchases.

Core Financial Function & Mechanism

Facilitate trade transactions and provide transaction-linked liquidity/security.

Typical Tenor: 90 to 270 Days per Trade TransactionTarget Scale: ₹5 Cr – ₹500 Cr+

Eligible Credit Products (7)

Security / Structure
Letter of Credit (LC)Non-Fund-Based
Bank payment commitment against compliant shipping docs
LC-backed FinanceFund-Based
Disbursement backed by confirmed LC
Bank Guarantee (BG)Non-Fund-Based
Performance or financial trade guarantee
Bill DiscountingFund-Based
Post-shipment trade bills
Packing Credit (Pre-shipment)Fund-Based
Purchase order / confirmed export contract
Trade FinanceHybrid
Comprehensive trade facility package
Buyers / Suppliers Credit (where applicable)Fund-Based
Offshore bank funding for trade imports
SME PAISA Structuring Tip: Optimizing cash margin requirements on trade lines (negotiating down from 20-25% to 5-10% FD margin) releases trapped promoter capital back into core operational working capital.
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12
Non-Fund-Based Facility

Non-Fund-Based Requirement

Obtain institutional bank guarantees and letters of credit without cash outflow

Client Operational Dilemma

"Client doesn't necessarily need immediate cash but needs a banking instrument."

Securing government or large corporate tenders, turnkey execution contracts, or concession agreements requires bank-backed financial or performance guarantees, not loan disbursements.

Core Financial Function & Mechanism

Provide a bank-backed financial commitment rather than direct cash funding.

Typical Tenor: 6 Months to 5 Years (Tender / Defect Liability Period)Target Scale: ₹5 Cr – ₹500 Cr+

Eligible Credit Products (6)

Security / Structure
Bank Guarantee (BG)Non-Fund-Based
Bank credit undertaking
Letter of Credit (LC)Non-Fund-Based
Documentary trade credit
Performance GuaranteeNon-Fund-Based
Assures contractual execution milestone
Financial GuaranteeNon-Fund-Based
Assures monetary obligation fulfillment
Advance Payment GuaranteeNon-Fund-Based
Secures mobilization advances from client
Security Deposit GuaranteeNon-Fund-Based
Replaces cash EMD in high-value tenders
SME PAISA Structuring Tip: Substituting cash Earnest Money Deposits (EMD) and retention monies with bank guarantees unlocks millions in dormant company funds. We negotiate soft collateral and lowest commission slabs across tier-1 PSU and private banks.
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Custom Debt Structuring

Unsure which credit facility best matches your balance sheet?

Our corporate finance advisors evaluate your financial statements, DSCR, and cash conversion cycle to structure multi-lender proposals with lowest interest margins.

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