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A Loan Against Factory is a type of financing where a company secures a loan using its factory or manufacturing facility as collateral.

Loan Against Factory

Loan Against Factory means that if the borrower defaults on the loan, the lender has the right to seize the factory to recover the outstanding debt.

These loans are typically used by manufacturing companies to obtain funds for various purposes such as expansion, purchasing equipment, working capital, or meeting other financial obligations.

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Loan Against Factory-

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Following are the procedure steps:

1. Assessment of Eligibility:

The borrower (the company owning the factory) would need to assess their eligibility for the loan. This typically involves meeting certain criteria set by the lender, such as having a certain level of revenue, profitability, and asset value.

2. Documentation:

The borrower will need to gather and submit various documents to the lender. These may include financial statements (such as balance sheets, income statements, and cash flow statements), proof of ownership or lease of the factory, property documents, business registration documents, and any other information required by the lender.

3. Valuation of the Factory:

The lender will likely conduct a valuation of the factory and its assets to determine the loan amount that can be provided. This valuation may involve assessing the market value of the factory, machinery, equipment, and other assets.

4. Loan Application:

The borrower will then submit a loan application to the lender, providing details about the loan amount requested, the purpose of the loan, the proposed repayment schedule, and any other relevant information.

5. Due Diligence:

The lender will conduct due diligence on the borrower's financial health, creditworthiness, and the value of the factory and its assets. This may involve reviewing the submitted documents, conducting site visits, and performing background checks.

6. Loan Approval:

If the lender is satisfied with the borrower's eligibility and the results of the due diligence process, they will approve the loan. The terms and conditions of the loan, including the interest rate, repayment schedule, and collateral requirements, will be finalized at this stage.

7. Disbursement of Funds:

Once the loan is approved, the lender will disburse the funds to the borrower. The funds can then be used for the intended purpose, such as financing expansion projects, purchasing new equipment, or meeting working capital needs.

8. Repayment:

The borrower will be required to repay the loan according to the agreed-upon terms and schedule. This typically involves making regular payments of principal and interest over the loan term.

9. Monitoring and Compliance:

Throughout the loan term, the lender may monitor the borrower's financial performance and compliance with the loan agreement. This could involve regular financial reporting and site inspections.

10. Loan Closure:

Once the loan is fully repaid, the lender will release any liens or claims on the factory, and the borrower will regain full ownership of the property.

Why choose Livanity for Loan Against Factory?

Livanity is a one-stop solution for all your financial needs. Here, we try to provide you best services that are hassle-free and quick in nature. For Loan Against Factory, we provide you a comparative analysis of what different banks are offering. We also assist you in your final decision.

Here are a few reasons for you to apply for a Loan Against Factory at Livanity:

Fast assistance:

At Livanity, you can contact us at any official working hours of the day.

Customer needs in forefront:

Your needs are our priority. We promise to deliver you with services that are best on our capabilities. By handpicking loan offers based on customer profile, we try to give you the most personalized experience.

Compare Offers Online:

With more than 100 lenders as partners, you can compare the different offers of financial institutions to make the right decision. In fact, we help you find the best lender as per your eligibility requirements. There is a personalized relationship lender for every customer who helps him/her select the bank of his/her choice.

Real-time customer support:

Our customer support team is fast and efficient to clear all your doubts regarding loan eligibility, procedures, offers, documentation and repayment options. We even contact with the respective lender on behalf of you.

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