Private Equity Funding for Distressed Businesses
Where the traditional lenders withdraw, Private Equity (PE) comes in to revive struggling businesses. Our team at NPA Help specializes in assisting financially challenged and NPA-tagged businesses to obtain a private equity investment to stabilize, clear their debt and reinitiate growth.
When your business is experiencing cash-flow difficulties, increasing debts or is already struggling with inefficiencies in its operations or market interference, PE funding may be your lifeline - not only to survive, but to emerge stronger.
Private Equity is the direct investment into companies where equity is acquired by a funder. PE funding is different from loans which increase your debt burden. Rather, it brings experienced investors who contribute capital and become active in guiding your company to profitability.
PE firms are more likely to invest in companies that are performing poorly but have high potential. Besides money, they also come with leadership, strategic contributions and performance-enhancing systems.
Companies that are under financial pressure find it difficult to access conventional sources of finance such as banks or NBFCs. Fresh loans are not usually available with a declining credit score, late payments or NPA. This is where Private Equity can play a decisive role.
The Private Equity funding will not only inject capital into your business but also offer strategic advice on how to restructure your business, increase your margins and grow sustainably. It substitutes temporary solutions with permanent change.
When a borrower fails to make EMI payments for 90 days or more, the loan account is classified as an NPA (Non-Performing Asset) by the bank. Here’s what follows:
The companies that are already in a distressed situation but with potential business and relevance in the market are best suited to Private Equity. In case your company has already had its better days and you are sure that a little financial help and restructuring will help you make the situation better, then PE funding might be the right option.
It works well for :
The process of raising Private Equity as a distressed business is a complicated process. We ensure that the journey is smooth, strategic and successful at NPA Help.
NPA Help is not just a funding advisory. We are your revival partners. With a profound experience in resolving stress, networks with the best PE investors in India and hands-on turnaround capabilities, we help promoters to take charge and re-establish their businesses.
We are not only confidential, but we also deal with verified investors and all our solutions are customized. Our mission is to support Indian businesses not only to recover, but to emerge with strength, clarity and capital.