Obtaining Your MSME Bridge Emergency Finance in 3 to 4 Days
Businesses are not usually waiting for lending approvals, especially when an opportunity arises or an emergency occurs. For instance, If you just landed a huge order and need the raw materials right now, or if you’re facing an unexpected cash flow shortage, waiting for a long-term loan will take too much time. Time is your most important resource in either case.
Indian banks have a reputation for heavy paperwork and the “wait-and-see” approach to traditional loans (which can take between 60 and 90 days). However, on the other hand, what do you do when you need funding in 72 hours? Bridge financing was created to address precisely this need.
Why Traditional Banks Do Not Work in Emergency Situations
Traditional lenders base their decisions on strict collateral assessments as well as a lengthy evaluation process that encompasses historical financial data. When speed is a priority, Traditional banks struggle because of:
- Numerous In-person verification rounds: A physical visit may stall your progress for weeks to get an answer.
- Monthly meetings of the Credit Committee: Your application will sit waiting for a meeting.
- Time-consuming legal and financial evaluation of your assets: They are unnecessarily too technical, which adds an additional layer of delay.
Bridge financing, on the other hand, is designed for speed and short-term funding that will allow you to ‘bridge’ the time gap between the immediate need of cash to satisfy a current need in your business, and then the funding of your next ‘liquidity event,’ or significant infusion of cash.
What Is Prosperity Peak and What Is Its Process?
At Prosperity Peak, we have developed an easy way to get access to funding. We have outlined the entire process for you so that you can go from submitting your application to receiving funds in a matter of days.
Quick Assessment
We don’t waste time. When you send us what you need, we evaluate your requirements within hours so that we can recommend how best to go about getting your financing (i.e., via a structured finance transaction or a straight debt basis).
Complete Documentation
We make sure that the documents you send us will be ready and acceptable by lenders immediately, so that there are no delays based on missing documentation or questions related to your application.
Real-Time Approval
By working with our own network of Non-Bank Financing Companies (NBFCs) and Private Lenders, we are able to provide you with rapid access to funding through a lender without the usual restrictions imposed by a traditional bank’s approval process.
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The funds will be credited directly to your account, allowing you to capitalize on potential opportunities or respond to an unexpected emergency at any time, without delay.
Essentially There Are 5 Required Documents to Obtain a Loan Quickly
We have determined that by organizing the Key Information that needs to be submitted to meet the 3-4 day time frame for loan approval, you are already 70% of the way towards submitting an acceptable request for financing. The Five Key Documents Include:
- Business KYC and Registration Documents—The Business Registration Certificate, GST Registration, Entity’s PAN Number.
- KYC for all Promoters—PAN Number and AADHAAR Number for all Persons who own and operate your business.
- Bank Statements: 12 months’ worth of bank statements that were downloaded from the Portal in PDF format.
- Financial Statements: Audited balance sheet and profit and loss statements for the last two (2) years, including any GST returns.
- Exit Strategy: The Lender will require a clear and verified exit strategy to be provided. In addition, you will need to provide your approved purchase order or sanction letter for a future Long term loan application.
Have You Already Evaluated Whether Bridge Funding is Right for You?
Bridge Financing is a short-term solution that helps fund your business, not an alternative to what you can achieve with a Long-term loan. It is a perfect fit for businesses who:
- Are working with a time-critical contract and cannot afford to lose that opportunity
- Are waiting on the potential infusion of equity or sale of real estate to generate liquidity in the near future
- Require an immediate upgrade to their manufacturing equipment to meet upcoming deadlines
- Are in between receiving a long-term loan approval and funding.
The Importance of Timely Action:
Companies today are competing for the same amount of business and many times, the difference between success and missed opportunity can be measured in days. When a customer has placed multiple orders with other suppliers, it can take a matter of days for the supplier to ship out those goods. More significantly, a financing gap during peak season can impact the company’s ability to maintain its supply chain.
The Advantage of Prosperity Peak
Prosperity Peak stands out from the competition not just because of the speed of funding but also because we understand the realities of the many types of MSMEs and their need for a funding partner who speaks their language and moves at their pace. We have a network of specialized lenders who look at your business fundamentals and future potential in addition to your historical performance.
We have helped numerous MSMEs in turning disasters into success and getting the money they need at critical points in time. In business, timing is everything, and the difference between disaster and success will be the right funding at the right time.
If you are ready to explore bridge funding for your business, reach out to Prosperity Peak and see how we can help you get funding in 3-4 days vs. 3-4 months.
