The fact that CredAvenue offered us the option to source debt at the cheapest rate and in record speed made our debt financing journey pleasing.
Pankaj Sharma
Proprietor
Siddharth Forge is one of the leading manufacturers of forged flanges, stainless steel forged valves, offered forged flanges, and stainless steel forged valves based out of Jharkhand’s Jamshedpur. The company deals in steel and stainless steel engineered products marked by long working life, high functionality, and low maintenance. Siddharth Forge is known for 100% on-time delivery and ensuring customer satisfaction to regular clients at the most cost-effective prices.
Quick Facts
30% Jump in sales and revenue
Secured a funding of INR 2 crore
Pending vendor dues settled
Established in 2005, the company boasts of 0% rejection and supplies its forged flanges and stainless steel forged valves in the international market. With their focus on continuous process improvement and strict adherence to safety norms, Siddharth Forge supplies developed components to railways, automobile companies, and the power sector, among other industries.
The company has established itself as an infamous brand in East India, emphasising embracing the latest infrastructure, being punctual, and ensuring top-notch quality.
The Challenge
Steel is the major raw material the company uses to engineer its products, and the company needs to stock steel to ensure there is enough stockpile of steel to cater to their clients. Siddharth Forge was facing a shortage of working capital and had exhausted its credit limit with its banking partner.
To top it off, the company soon discovered that engaging with another bank would be tiring and a long-drawn process, thanks to the never-ending paperwork, long due diligence and compliance process.
Here is the most significant challenge the company was facing:
- Siddharth Forge urgently required a capital infusion of Rs 2 crore to work on their expansion plans right when the pandemic struck.
- The shortage of funds made it impossible for the company to fulfil their buyer’s requirements, which affected the deliveries to their clients.
- The company lacked an in-house debt financing expert and couldn’t access the right debt deals to help them expedite its growth.
The Solution
This was when Siddharth Forge came onboard CredAvenue’s Supply Chain Finance marketplace. The company sought quick funding of Rs 2 crore, and here is how this materialised:
- Siddharth Forge got access to the multiple debt financing deals on CredAvenue.
- The company could liaison with different financiers to land the perfect deal to finance their supply chain.
- The Siddharth Forge team underwent the shortest onboarding with minimal paperwork and kickstarted their journey of securing the cheapest debt in no time.
The Result
The company secured funding of INR 2 crore in no time and focused on its growth strategies instead of running pillar to post for funding. Siddharth Forge raked in a three-pronged result by coming to onboard CredAvenue:
- The company could purchase additional stock to be able to fulfil client requirements in a fast and efficient manner.
- All pending vendor dues were settled, allowing the company to forge a sustainable relationship with the suppliers.
More importantly, the company reported a sharp jump in its sales and revenue, 30%, thanks to timely access to requisite funds.
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