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CASE STUDIES

SME Business

CASE STUDYSME Business · Working Capital + Term Loan

A multi-chain footwear retailer

From 11% to 8%, by separating two needs.

11% → 8%interest cost
1.05 → 1.4current ratio
20% a yeargrowth after the change

The challenge

Every new showroom (deposit, fixtures, ACs and Rs 30–40 lakh of stock) was paid for from the working capital limit meant for inventory and receivables.

What we did

  1. 1Separated the two needs.
  2. 2Kept the working capital limit only for inventory and receivables.
  3. 3Arranged a term loan for each new showroom, repaid in EMIs.

The result

Same business, same owner. Only the structure changed.

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