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CREDIT CARES
Capital Advisors · ₹10–500 Cr Debt
Institutional Debt Facilities & Appraisal Architecture (₹10 Cr to ₹500 Cr)
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Direct Partner Desk

Mandate Review & Consortium Appraisal

Speak directly with our Managing Principal & Senior Ex-Bankers. We evaluate CMA projections, benchmark DSCR, and assemble matched consortia across 45+ lenders.

✓ Term sheet within 14–21 working days
✓ Financial closure in 45–60 days
✓ Strict institutional NDA & confidentiality
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Corporate Working Capital, CC/OD & Non-Fund Consortiums (₹10 Cr to ₹100 Cr+)

Multiple Banking to ICA Consortium Migration & Working Capital Enhancement

Structuring multi-bank consortium working capital, optimizing drawing power, and migrating fragmented multiple banking accounts into formal Inter-Creditor Agreements (ICA).

Confidential Mandate Review Calculate DSCR & Amortization
Direct Answer / Underwriting Overview

What is a Corporate Working Capital Consortium and when is it required?

A Corporate Working Capital Consortium in India is a unified multi-bank credit arrangement established under Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) guidelines when a corporate borrower’s aggregate fund-based and non-fund-based limits exceed ₹10 Crore to ₹100+ Crore. Governing Cash Credit (CC), Overdraft (OD), Letters of Credit (LC), and Bank Guarantees (BG), the consortium is led by a Lead Bank operating an Inter-Creditor Agreement (ICA) with shared pari-passu charges over current assets.

Institutional Underwriting & Structuring Benchmarks

Institutional underwriting parameters and facility structuring benchmarks across 45+ Scheduled Commercial Banks.

Working Capital MetricFormal Consortium ArrangementFragmented Multiple BankingCreditCares Structuring Advantage
Drawing Power & Stock Audit Unified monthly drawing power calculation across all banks Contradictory stock audits and conflicting DP Standardized stock and debtor assessment preventing arbitrary limit freezes
Pari-Passu Charge Creation Single master joint deed of hypothecation with lead bank Conflicting first and second charges across banks Clean ROC charge registration eliminating lender disputes over asset realization
Non-Fund Facility Sizing Combined pool of LC and BG lines allocated among member banks Single bank caps restricting procurement Maximized non-fund limits allowing high-volume raw material import contracts
Inter-Creditor Alignment Institutional Inter-Creditor Agreement (ICA) execution under RBI & IBA guidelines Disorganized multiple lenders acting unilaterally Coordinated consortium meetings and unified covenant renegotiation
Interest Cost & Spreads Harmonized competitive coupon linked to repo/MCLR benchmark Wide divergence in interest rates across banks Compressing overall blended interest cost across participating member banks

Execution Architecture & Mandate Delivery

How CreditCares navigates multi-banking committees, technical appraisals, and compliance milestones.

Multiple Banking to ICA Migration
Transitioning corporations from disorderly multiple banking relationships into a formal consortium, eliminating conflicting security charges and regulatory non-compliance.
Drawing Power (DP) & CMA Optimization
Restructuring the CMA data under Nayak and Tandon Committee norms to maximize Maximum Permissible Bank Finance (MPBF) and eliminate liquidity crunches.
Non-Fund Inland & Foreign LC Syndication
Structuring extensive Letter of Credit (LC) lines for domestic and overseas procurement, backed by buyer’s credit arrangements to extend cash runways.
Financial & Performance Bank Guarantees (BG)
Arranging high-ticket performance and financial guarantees for EPC contractors, industrial suppliers, and government tender participants.

Credit Committee Bankability & Risk Mitigation

Why large-ticket applications fail at the Sanction Committee stage and how our desk immunizes your proposal:

Risk Factor 01 Elongated Debtor Days and Unbilled Revenue

Debtors exceeding 90/180 days are excluded from drawing power. We establish factoring or invoice discounting carve-outs to preserve liquid borrowing power.

Risk Factor 02 Non-Compliance with RBI Large Exposure Framework

Single-bank concentration limits force banks to freeze limits. We distribute credit lines across new consortium co-lenders to unlock headroom.

Risk Factor 03 Inventory Stockpile & Slow-Moving Stock Valuation

Bank stock auditors impose aggressive valuation haircuts. We coordinate technical inventory aging audits to substantiate book valuations.

Frequently Asked Questions

Mandate & Syndication Inquiries

When must a corporate migrate from multiple banking to a consortium? ▼
While the RBI deregulated mandatory consortium thresholds in October 1996 (C&I Circular No. 22/08.12.01/96-97), commercial banks institutionalize a formal consortium or execute an Inter-Creditor Agreement (ICA) under IBA conventions when aggregate corporate credit facilities cross ₹25 Cr to ₹50 Cr or when single-bank exposure limits are reached. Furthermore, under the RBI Prudential Framework for Resolution of Stressed Assets (Circular RBI/2018-19/203 dated June 7, 2019), entering into an ICA is legally mandated for all participating lenders upon credit default to enforce collective voting rules (at least 75% by value and 60% by number). In standard operating facilities, migrating to a consortium eliminates conflicting security hypothecations and unifies drawing power under a single Lead Bank.
How is drawing power (DP) calculated in a consortium? ▼
Drawing Power is calculated as (Eligible Paid Stocks + Eligible Book Debts within 90 days) minus the stipulated margin (typically 25% on stocks and 30%–40% on debtors), allocated pro-rata across member banks.
Can a company negotiate lower margins on working capital facilities? ▼
Yes. With strong financial ratings, low debtor concentration, and clean banking conduct, we negotiate stock margins down from 25% to 15%–20%, freeing up significant cash flow.
What is the role of the Lead Bank in a working capital consortium? ▼
The Lead Bank assesses the overall working capital requirement, convenes quarterly consortium review meetings, conducts joint stock audits, and manages security sharing.
Can non-fund facilities (LC and BG) be converted into fund-based limits? ▼
Yes. We structure interchangeability clauses in sanction letters allowing flexible movement between fund-based CC limits and non-fund LC/BG lines based on business seasonality.
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Senior Ex-Banker Deal Desk Active

Get an In-Principle Debt Appraisal

Fast-track routing for <₹50L to ₹500 Cr+ facilities. 3 quick inputs connect you directly to the appropriate regional credit desk (Mumbai / Kolkata / Pan-India).

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Indicative term-sheet parameters and eligibility are shared confidentially via WhatsApp deal line.

✓ 100% Confidential (NDA)
✓ 24–48h Triage Review
✓ 14–21 Day Term Sheet SLA
✓ Zero Upfront Assessment Fee
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