Facility selection
Matching the requirement to the correct facility type and tenor before anything is submitted — the wrong product is a common and avoidable cause of delay.
Bank funding advisory
Bank facilities, prepared the way banks actually assess them.
Most declined applications are not weak businesses. They are strong businesses presented in a form the credit process cannot easily evaluate.
Term loansCapex and expansion
Working capitalCC, OD and limits
Project financeLonger-tenor facilities
What bank funding covers
The institutional backbone of Indian business finance.
Banks remain the primary source of business credit in India, and for good reason: pricing is generally the most competitive available, tenors can be long, and a well-conducted banking relationship compounds in value over years.
The trade-off is process. Bank credit runs through a structured assessment — financial appraisal, security valuation, credit committee, sanction, documentation, disbursement — and each stage has its own requirements and its own reasons to pause.
Understanding what that process needs, and providing it in the expected form, is usually the difference between a facility that moves and one that quietly stalls.
- Term loans for capital expenditure
- Cash credit and overdraft limits
- Working capital demand loans
- Project and infrastructure finance
- Letters of credit and bank guarantees
- Equipment and machinery finance
- Lease rental discounting
- Refinancing of existing facilities
How a bank assesses
The five questions behind almost every credit decision.
Different banks weight them differently, but the questions themselves rarely change.
01
Can it be repaid?
Operating cash flow against total obligations, tested against a slower year. This is the first and most decisive question.
02
What secures it?
Primary and collateral security, valuation basis, and what is already charged to other lenders.
03
How have you conducted?
Banking history, existing account conduct, cheque returns, credit bureau records and statutory compliance.
04
Is the purpose sound?
Whether the stated end use is credible, commercially sensible and consistent with the rest of the application.
05
Who stands behind it?
Promoter background, experience, existing exposure and the guarantees offered.
How Sourcing India assists
What we bring to a bank funding mandate.
Appraisal-ready documentation
Financials, projections, CMA-style data and supporting records assembled in the structure credit teams expect to receive.
Lender identification
Which banks are genuinely active in your sector, ticket size and geography, rather than whichever branch is nearest.
Query management
Credit queries answered promptly and consistently, which materially affects how quickly a file moves.
Term comparison
Comparing sanction letters properly — rate, tenor, security, covenants, fees and prepayment terms all together.
Process momentum
Keeping sanction, documentation and disbursement moving, which is where many approved facilities lose weeks.
Key considerations
Where bank funding conversations most often go wrong.
01
Applying to too many banks at once
Multiple simultaneous enquiries show up on credit bureau records and can weaken your position rather than improve your odds.
02
Inconsistent financials
Statutory, tax and management accounts telling different stories is the fastest way to lose credibility in appraisal.
03
Underestimating the security ask
Collateral requirements are often higher than businesses anticipate, particularly for first-time borrowers.
04
Treating sanction as completion
Sanction is conditional. Documentation, security creation and compliance conditions all sit between it and disbursement.
05
Ignoring existing account conduct
Cheque returns and limit overdrawals in the preceding year weigh heavily and cannot be explained away late.
06
Requesting the wrong tenor
Funding a five-year asset with a two-year facility creates refinancing pressure that was avoidable from the start.
Questions
Questions we are asked about this
Where documentation is complete and the security position is straightforward, sanction is often measured in four to eight weeks, with disbursement following once conditions are met. Project finance and consortium arrangements take longer. Incomplete documentation is the single largest cause of delay, and it is entirely within your control.
A term loan is a fixed amount disbursed once and repaid on a schedule — suited to buying an asset or funding an expansion. Cash credit is a revolving limit you draw and repay repeatedly, sized to your working capital cycle and secured against stock and receivables. Using one where the other is appropriate creates avoidable strain.
It can. Credit bureau enquiries are visible, and a pattern of applications without sanction invites questions. A more effective approach is to identify the two or three lenders genuinely suited to your profile and approach them with a complete, well-prepared file.
No. We are not a bank, an NBFC or a lending agent, and we cannot approve or influence a credit decision. What we can do is ensure the case is structured correctly, documented properly and presented to lenders for whom it is a genuine fit.
Related
Explore related solutions
Most funding conversations touch more than one route. These are the ones most often considered alongside this page.
Preparing a bank facility?
Share the requirement and your current banking position. We will tell you what a credit team will focus on, and what to resolve before submission.