Home Interiors Solutions
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Optimal Procurement Fin thru a combination of Debt facilities including Buyer credit, LC, OD, WCDL etc
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High cash margin (50% - 90%) sought by bankers for working capital facilities
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High-priced debt facilities from domestic Finacial Institutions
Challenges
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Effective cost of borrowing could be optimised by availing a flexible facility allowing for INR denominated facilities as well as FCY denominated facilities
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Overall cash in business could be
optimised by reducing the cash margin requirement of the Financial Institutions -
The cost of Procurement/ Input could be reduced by availing discounts on account of spot payments.
Analysis
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Facilitated Financing of Approx USD 4 Million through structured non Dilutive capital raise
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Procurement Costs optimised by availing discount on spot payments
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The overall cost of financing is optimised by approx 500-700 basis points at a minimal cash margin