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Working Capital & BG Limits for Contractors
Bank guarantees, mobilisation funding and receivable finance for civil, electrical, MEP and government contractors.
How We Serve the Contractors Sector
Contracting runs on guarantees and patience: EMD and performance BGs locked before revenue begins, mobilisation costs paid upfront, RA bills certified slowly, and retention held for years after completion.
We arrange non-fund BG limits sized to your bidding pipeline, working capital against certified RA bills, and receivable financing for government and PSU billing — so execution capacity, not banking limits, decides which tenders you chase.
Funding Challenges We Solve
Funding Solutions for Contractors
Case Study
Civil contractor (state PWD + NHAI), Nagpur
₹25 Crore BG + fund-based enhancement
The Challenge
A road contractor pre-qualified for ₹200 Cr of NHAI tenders but had BG headroom of just ₹4 Cr. The bank demanded 40% cash margin on any enhancement.
Our Solution
We syndicated a two-bank consortium: ₹18 Cr BG limits at 15% margin backed by property collateral, plus ₹7 Cr working capital with RA-bill discounting sub-limits for certified government receivables.
Business Impact
- BG capacity up 4.5x — three NHAI packages won in 8 months
- Cash margin reduced from 40% to 15%, freeing ₹5+ Cr liquidity
- RA bills now discounted within 72 hours of certification