When Businesses Need Capital That Doesn't Come In One Standard Shape

By Author: Avendus
Total Articles: 144
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There are times when a business needs capital, but a conventional loan doesn't quite fit the situation.
A company may be growing quickly and need funds for expansion. A promoter may want to consolidate their stake. Another business may be looking to acquire a competitor or refinance an existing obligation. The underlying businesses can be healthy, yet their financing needs may not fit neatly into the usual lending framework.
This is where Credit Solutions can make a difference.
Private credit has grown as an important part of the financing landscape because it can offer businesses more flexibility around how capital is structured. Instead of forcing every requirement into the same lending format, private credit can be designed around the circumstances of the business and the transaction.
That flexibility matters when timing is important.
A growth-stage company, for example, may need capital before it reaches the scale or predictability required for traditional financing. An established company may have a strong business but require funding for a specific transaction. In each case, the question is ...
... less about whether the business can borrow and more about what kind of financing makes sense.
The Need for Capital Can Look Very Different From One Business to Another
Consider a promoter who wants to increase their ownership in a business.
The company itself may be performing well, but the promoter may need financing for the transaction. This is different from borrowing for working capital or funding a new factory.
Similarly, an acquisition may require capital at the group level, where available cash flows and security across the structure need to be considered.
Avendus' Credit Solutions business provides financing across areas including promoter financing, acquisition financing, growth financing, and special situations. Its platform is designed to offer customised and flexible debt solutions to high-quality, growth-oriented businesses.
The ability to look at the specific requirement can make a meaningful difference.
Flexible Capital Can Help Businesses Move at the Right Time
Business opportunities don't always arrive when a company's balance sheet looks perfect.
An acquisition may become available unexpectedly. A refinancing requirement may have a tight deadline. A promoter may need to complete a transaction within a particular window.
Waiting for a standard financing route to become available can sometimes mean missing the opportunity altogether.
Private credit can provide another route.
Avendus' Credit Solutions platform describes itself as a private credit business with more than a decade of experience and a focus on customised financing. It has executed more than 90 credit financing transactions representing over ₹9,000 crore of credit, according to its website.
The platform also works across the risk and yield spectrum, allowing financing structures to be considered based on the specific needs of the business.
The Business Behind the Numbers Still Matters
Providing capital isn't simply a matter of looking at financial statements.
A lender needs to understand how the business works, what drives its growth, where the risks sit, and what the capital will actually be used for.
This is particularly relevant in private credit, where the structure of a transaction can depend heavily on the underlying business.
Avendus says its Credit Solutions business is sector agnostic and focuses on performing assets of high-quality, growth-oriented companies with differentiated business models. It also draws on the wider group's industry knowledge and relationships to carry out deeper business analysis.
That broader understanding can help shape financing around the actual situation rather than treating the business as a set of financial ratios.
Financing Doesn't Always Have to Sit at the Same Level
Another advantage of structured credit is the ability to consider where capital should be provided within a business group.
For acquisition financing, for instance, capital can potentially be provided at different levels of the group structure, depending on available cash flows and security.
This can create more room when structuring a transaction.
Avendus identifies acquisition financing as one of its key solutions, including funding for M&A and business purchases. Its platform also provides growth financing for areas such as capital expenditure and working capital, along with special situation financing for more complex requirements.
The common thread is flexibility.
Credit Can Play a Role Across a Company's Lifecycle
A business doesn't have just one financing need.
Capital requirements can change as the company moves from one stage to another. Early growth may call for expansion funding. A more established business may require acquisition financing. Later, the focus could shift towards refinancing, promoter transactions, or other strategic requirements.
A financing partner that understands these different situations can provide continuity as those needs change.
Avendus' Credit Solutions business says it maintains continuous engagement with clients and provides solutions at different stages of a company's lifecycle.
That relationship can be useful when the requirement is complex or the timeline is tight.
Ultimately, Credit Solutions are about more than providing debt.
They are about understanding why a business needs capital, where that capital needs to go, and how the financing can be structured around the opportunity.
For businesses with strong fundamentals and specific financing requirements, that flexibility can open possibilities that a standard lending product may not.
And sometimes, the most useful capital is the kind that fits the business rather than asking the business to fit the capital.