The Client
A North India-based engineering consultancy and project management company operating in the infrastructure and EPC ecosystem.
The Challenge
For nearly three decades, the company operated under a prevailing banking belief that businesses serving the EPC and infrastructure sector could access lender support only against near-complete collateral coverage.
Despite a strong operating history, the company's working capital facilities were restricted to approximately ₹32 Cr, with collateral coverage exceeding 100%.
This limited the company's ability to bid for larger projects and constrained its growth potential.
The TAP Approach
Business Understanding
We developed a detailed understanding of the company's operations, revenue drivers, project acquisition cycle, and working capital requirements.
Credit Positioning
We prepared lender-specific credit narratives designed to clearly communicate the company's business model, cash flows, and underlying risk profile.
Financial Modelling
Detailed financial modelling and banking presentations were developed to demonstrate the company's funding requirements and growth potential.
Lender Engagement
TAP engaged with both existing and new lenders, managing sanction discussions, lender queries, negotiations, and documentation.
Execution & Security Perfection
We managed security perfection and post-sanction execution to ensure the enhanced facilities were implemented effectively.
Rather than positioning the client as a conventional EPC contractor, we helped lenders understand the true nature of the business model, cash flows, and risk profile.
The Outcome
The company's working capital exposure increased from ₹32 Cr to ₹140 Cr within 18 months, representing a 438% increase in exposure.
At the same time, collateral coverage reduced from 105%+ to 42%, demonstrating that significantly higher banking limits could be achieved without proportionately increasing collateral support.
The engagement demonstrated that a professionally managed infrastructure consultancy could obtain meaningful credit support based on business fundamentals, cash flows, and a well-structured credit narrative rather than excessive collateralisation.
Key Takeaway
Strategic banking advisory can unlock growth far beyond traditional collateral-led lending models when the business is properly understood and presented.