What It Is and Who It Is For
Structured funding is a tailored credit structure for businesses that require funding beyond standard lending formats. It is generally suited to promoters, CFOs, developers, large MSMEs and mid-corporates seeking collateral-backed facilities of ₹25 Cr to ₹500 Cr, where multiple funding components need to work together under one credit structure.
Credit Core Finance (CCF) is an MSME Credit Advisory firm specialising in Credit Structuring & Syndication. We prepare the appraisal, financial analysis and Information Memorandum before a file reaches any credit desk. Structured funding is arranged pan-India, case-to-case, through leading private and MNC banks and our nationalized channel.
If you are looking for broader MSME loan services, structured funding is typically considered where funding size, collateral profile or transaction complexity goes beyond a standard business loan.
Structured funding at a glance
| Ticket Size | Typically ₹25 Cr to ₹500 Cr — an eligibility band, not a funding promise |
|---|---|
| Geography | Pan-India |
| Structure | Fund-based and non-fund-based limits combined under one credit structure |
| Components | Term loans · Working capital · Lease Rental Discounting · Builder last-mile · NCLT resolution · Promoter funding |
| Term Loan Tenure | Typically up to 6 years |
| LRD Tenure | Typically up to 10 years |
| Security | Collateral-backed; cover of around 2x is the usual working benchmark |
| Cash-Flow Test | The structure must hold a DSCR above 1.0x |
| Account History | Past SMA or regularised accounts reviewed case-to-case; active NPA not workable |
| Outside Scope | Land purchase transactions and greenfield projects |
| Pricing | Transaction-specific — settled at the structuring stage, after appraisal |
What is structured funding?
Structured funding combines one or more credit facilities into a single financing structure that matches the borrower's assets, cash flow and funding requirement.
Instead of treating each facility separately, the entire requirement is analysed together. Depending on the transaction, the structure may combine :
- Term loans
- Working capital
- Lease Rental Discounting (LRD)
- Builder last-mile funding
- NCLT resolution funding
- Promoter funding
- Fund-based & non-fund-based limits under one structure
Every transaction is structured individually. The ₹25 Cr to ₹500 Cr range represents the typical ticket size considered for this service. It is an eligibility band, not a funding promise.
Why does a business choose structured funding instead of a standard facility?
Many businesses reach a stage where one conventional facility cannot address every funding requirement. Examples include :
- Expansion requiring both capital expenditure and operating liquidity.
- Commercial assets generating rental income.
- Developer projects approaching completion.
- Corporate debt requiring a revised funding structure.
- Promoters requiring funding supported by business assets.
- Resolution situations requiring a fresh appraisal.
In these situations, structuring becomes as important as the funding itself.
Which funding components can form part of a structured transaction?
Term Loans
Term loans are generally used where businesses require capital expenditure funding, capacity expansion, acquisition of productive assets or long-term business investment. Within a structured transaction, the repayment profile is evaluated alongside the overall cash flow of the business rather than in isolation. Term loans inside these structures typically run up to 6 years.
Working Capital
Working capital supports day-to-day business operations. In larger transactions, it is often assessed together with long-term borrowing so that operational liquidity and expansion funding remain aligned under one credit structure.
Lease Rental Discounting (LRD)
Lease Rental Discounting allows funding against established rental cash flows generated by commercial property. Rather than evaluating only the underlying real estate asset, the structure also considers the rental income and lease quality supporting the facility. LRD tenures typically run up to 10 years.
Builder Last-Mile Funding
Builder last-mile funding is intended for projects that have already reached an advanced stage of execution and require funding to support completion. For this service, CCF considers projects that are approximately 70% complete or beyond. Each case is structured individually after reviewing project documentation, security and cash-flow position. This service does not cover land purchase or greenfield developments.
NCLT Resolution Funding
Some businesses undergoing resolution require a fresh funding structure supported by detailed financial analysis and transaction documentation. Resolution funding of this kind arises under the Insolvency and Bankruptcy Code, 2016, where a resolution plan has been approved by the National Company Law Tribunal (NCLT). Funding is considered for the approved resolution structure — not for accounts currently classified NPA. Where a transaction is workable, CCF prepares the appraisal and Information Memorandum for consideration under an appropriate structured funding approach.
Promoter Funding
Promoter funding may form one component within a larger structured transaction where the overall funding requirement is supported by collateral, business cash flow and a complete credit appraisal. It is evaluated together with the wider financing requirement rather than as an isolated facility.
Fund-Based and Non-Fund-Based Limits
Where the business needs letters of credit or bank guarantees alongside funded limits, both are assessed under the same structure so that total exposure, security and cash flow are read together.
Who qualifies for structured funding?
This service is intended for businesses and promoters requiring larger-ticket funding where credit structuring is an important part of the transaction.
- Typical transaction size: ₹25 Cr to ₹500 Cr.
- Collateral-backed funding structure — security cover of around 2x is the usual working benchmark.
- Cash-flow-tested transactions — the structure must hold a DSCR above 1.0x.
- Fund-based and non-fund-based facilities may be combined where appropriate.
- Past SMA or regularised accounts may be reviewed on a case-to-case basis.
- Active NPA accounts are not workable.
- Land purchase and greenfield projects are outside the scope of this service.
Where appropriate, supporting transaction material may include financial information, business profile, project information, collateral details and other documents required to prepare a complete Information Memorandum before the case is presented for consideration.
Businesses seeking examples of completed assignments may also review our ₹40 Cr structured funding case study.
Is structured funding available across India?
Yes. Structured funding is a pan-India service. The appraisal, financial analysis and Information Memorandum are prepared centrally by our credit desk in Pune, and the completed proposal is presented through the channel appropriate to the transaction’s geography and profile.
The service is available to businesses across India, including Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, Ahmedabad, Pune and other industrial and commercial centres. Location does not change the assessment: the same collateral, cash-flow and structuring tests apply to every transaction.
How does CCF work the file before it reaches any credit desk?
Large-ticket funding is rarely about completing an application form. The quality of the credit appraisal usually determines whether the transaction can be evaluated on its actual commercial merits.
Credit Core Finance prepares the credit file before it is presented for consideration through our panel. The objective is to ensure that the transaction is organised, internally consistent and supported by the required financial analysis. The process generally includes:
- Understanding the business model and funding objective.
- Reviewing the proposed security and available collateral.
- Studying historical financial performance and projected cash flow.
- Identifying the appropriate combination of facilities.
- Preparing a detailed Information Memorandum.
- Preparing the internal credit appraisal.
- Presenting the completed proposal through the appropriate funding channel.
The Information Memorandum becomes the central document explaining the business, the funding requirement, available security, proposed structure and supporting financial information. Rather than forwarding incomplete information, the file is organised before reaching any credit desk.
Why is the Information Memorandum important?
A structured transaction normally involves more than a single funding requirement. Decision makers therefore require a clear picture of the business, the assets supporting the proposal and the expected cash flow.
The Information Memorandum brings these elements together in one organised document. Depending on the transaction, it may include the business profile, promoter background, financial performance, proposed security, funding requirement, transaction structure and supporting assumptions. It is prepared specifically for the transaction under consideration rather than using a standard template.
When may structured funding be appropriate?
- Business expansion requiring multiple facilities.
- Acquisition of productive business assets.
- Commercial property supported by rental income.
- Completion funding for eligible real-estate projects.
- Corporate debt restructuring situations that remain workable.
- Promoter-led business transactions requiring a tailored credit structure.
- Large working-capital requirements alongside long-term borrowing.
Every transaction is assessed individually. The final structure depends upon the available security, documented cash flow, transaction purpose and overall credit profile.
What does CCF not undertake under this service?
To maintain clarity, this service excludes certain situations.
- Active NPA accounts.
- Land purchase transactions.
- Greenfield projects.
- Transactions outside the typical ₹25 Cr to ₹500 Cr eligibility band.
- Funding requests unsupported by collateral or demonstrable cash flow.
Where a matter falls outside these parameters, another funding approach may be more appropriate than structured funding.
Why work with Credit Core Finance?
Structured transactions require careful preparation before they are presented for consideration. CCF focuses on credit analysis, documentation and transaction structuring rather than simply forwarding a request.
Our role is to study the transaction, prepare the appraisal, build the Information Memorandum and structure the funding requirement so that the proposal is presented in a logical and organised manner.
Each assignment is approached individually because no two businesses, assets or funding requirements are identical.
Speak with our team
If your business is evaluating a structured funding requirement within the typical ₹25 Cr to ₹500 Cr eligibility band — anywhere in India — our team can review the transaction and advise whether it is suitable for credit structuring and syndication on a case-to-case basis.
Talk to Our TeamFrequently Asked Questions
What is structured funding?
Structured funding combines one or more credit facilities into a customised funding structure based on the business requirement, available collateral and documented cash flow.
Who is this service intended for?
It is generally intended for promoters, CFOs, developers, large MSMEs and mid-corporates seeking structured transactions within the typical ₹25 Cr to ₹500 Cr eligibility band.
Is structured funding available across India?
Yes. This is a pan-India service. The appraisal and Information Memorandum are prepared centrally by the CCF credit desk in Pune, and the proposal is presented through the channel appropriate to the transaction’s geography and profile.
Can term loans and working capital be structured together?
Yes. Where appropriate, multiple fund-based and non-fund-based facilities may be structured together as part of one overall transaction.
What tenure do structured facilities carry?
Term loans within structured transactions typically run up to 6 years and Lease Rental Discounting typically up to 10 years. The final tenure is transaction-specific.
What security cover is expected?
Structured funding is collateral-backed. Security cover of around 2x is the usual working benchmark, assessed case-to-case together with the cash flow supporting the structure.
Does CCF prepare the Information Memorandum?
Yes. CCF prepares the Information Memorandum and supporting credit appraisal before the proposal reaches any credit desk.
Can regularised SMA accounts be considered?
Past SMA or regularised accounts may be reviewed on a case-to-case basis. Active NPA accounts are not workable under this service.
Does this service cover land purchase or greenfield projects?
No. This service does not cover land purchase or greenfield projects.
Is ₹25 Cr to ₹500 Cr a guaranteed funding amount?
No. It is the typical eligibility band for this service. Every transaction is structured and arranged on a case-to-case basis.
Banks advertise. Brokers claim. CCF grades.
₹1 Cr to ₹500 Cr · 1000+ businesses · 10+ years
Talk to us · +91 89563 34991 · creditcore.finance