Direct MSME lending:

Mid Markets
Corporate Lending

Mid-Market Lending at Northern Arc focuses on meeting growth capital needs of Small and Medium Enterprises (MSME’s) whose debt requirements are not fully met by banks. This could be because of reasons including a lack of hard collateral, low business vintage or a lack of understanding of the business models. A timely credit solution is essential for these companies to meet their requirements of capex, working capital and achieve their growth milestones.

As an institution we have the ability to cater to a wide variety of capital requirements across the company lifecycle. We have the flexibility to deploy capital through different vehicles to solve for specific situations and yields. We also enable larger pools of capital through leveraging our Institutional relationships with domestic and offshore credit investors.

Key Pillar of our underwriting philosophy:

Cash flow based underwriting approach: Deep emphasis on cash flow-based underwriting and governance standards and not merely collateral based lending.

Diligence: Our diligence process covers corporate governance, financial performance, site visits, environment and social risk, customer and vendor feedback etc.

Risk Monitoring: Periodic monitoring of financial performance, covenants, management meetings etc to assess the progress of the Borrower.