How We Unlocked ₹200 Crore in Working Capital Without a Rupee of New Debt
A listed company was facing a tight cash cycle, but the answer was already sitting in its receivables. We structured the release of funds through TReDS so the balance sheet stayed clean and no new leverage was added.
The Situation
A listed company came to us in a period of acute cash stress. Receivables were locked in confirmed invoices, while payables were coming due. The obvious answer would have been another overdraft or cash credit line, but that would have pushed an already stretched balance sheet closer to covenant pressure.
What We Saw
Most advisors start with liabilities. We started with assets. The company had high-quality, confirmed receivables from creditworthy counterparties, which meant the working capital issue was not a credit problem so much as a liquidity structuring problem.
What We Did
We structured the release of funds through TReDS, the RBI-regulated Trade Receivables Discounting System. The confirmed invoices were uploaded to the platform and bid on by registered financiers looking for short-duration, fixed-income returns.
The Outcome
The company received early payment on receivables and resolved the cash crunch without taking on new debt. The balance sheet stayed clean, there were no covenant triggers, and the entire process ran on a regulated platform with a full audit trail.
- Early payment on receivables without fresh borrowing
- No new debt or covenant stress
- Financiers earned a return above plain fixed deposits
- Complete audit trail across an RBI-mandated platform
The Judgment Layer
The working capital issue was real, but the solution was never on the liability side. It was already sitting in the receivables. Knowing which instrument fits which situation is exactly the judgment layer that software cannot replace.
Need a second set of eyes?
If you are dealing with delayed cash flows or a control issue that does not add up, we can help structure the next move.