Funding in NBFCs
Funding in NBFCs – Overview
Non-Banking Financial Companies (NBFCs) are a vital source of credit for individuals, MSMEs, and businesses. To sustain and grow, NBFCs require continuous funding support from banks, investors, and financial markets. Funding in NBFCs can be raised through equity capital, debt financing, bank borrowings, debentures, securitization, external commercial borrowings (ECBs), and private equity investments.
Since NBFCs are tightly regulated by the Reserve Bank of India (RBI), every funding activity must comply with prudential norms, capital adequacy requirements, and FEMA guidelines (in case of foreign investment).
At Cardiff Services, we provide end-to-end Funding Advisory for NBFCs in India, helping NBFCs raise capital, structure debt, comply with RBI norms, and prepare investor-ready documents.
Why Choose Cardiff Services for NBFC Funding
At Cardiff Services, we understand that funding is the lifeline of an NBFC. Our expertise lies not only in connecting NBFCs with the right funding sources but also in ensuring that every deal is regulator-approved, compliant, and growth-oriented.
We support NBFCs in preparing investor-ready documentation, negotiating with lenders, and managing compliance, so promoters can focus on scaling the business. With Cardiff Services, your NBFC gains both funding and financial discipline.
Key Features of Funding Support for NBFCs
Equity Funding: Guidance on raising equity capital from promoters, private equity, or venture capital firms.
Debt Financing: Advisory on term loans, working capital, bank borrowings, and inter-corporate deposits.
Capital Market Instruments: Support in issuing debentures, bonds, or securitization of loan portfolios.
Foreign Investment (FDI/ECB): Compliance and advisory for FEMA-approved funding routes.
Valuation & Investor Pitch: Preparation of financial models, valuations, and pitch decks.
Regulatory Compliance: Ensuring RBI, MCA, SEBI, and FEMA compliance during funding.
Documents Required for NBFC Funding
Certificate of Incorporation and RBI License (CoR).
MOA & AOA with financial activity clause.
Audited financial statements (last 3 years).
Net Owned Fund (NOF) certificate.
Loan portfolio details and asset quality reports.
Board resolutions approving fundraising.
Business plan and financial projections.
Valuation report and capital structure.
Past compliance records (RBI/MCA filings).
KYC of promoters, directors, and shareholders.
Step-by-Step Procedure for NBFC Funding Advisory
Requirement Analysis – Assess funding requirement (equity, debt, ECB, securitization).
Capital Structuring – Design optimal capital mix to meet RBI norms.
Document Preparation – Prepare business plan, financial projections, and compliance records.
Investor/Lender Approach – Identify suitable banks, PE/VC investors, or financial institutions.
Due Diligence Support – Facilitate audits, compliance checks, and data rooms for investors.
Negotiation & Structuring – Assist in term sheet discussions, loan covenants, and equity valuation.
Regulatory Filings – Ensure timely filings with RBI, MCA, and FEMA (if foreign funds involved).
Closure & Disbursement – Finalize agreements and ensure funding compliance.
Frequently Asked Questions
A company name search ensures that your chosen business name is unique, legally compliant, and not already registered with Companies House UK. It helps you avoid legal disputes, trademark issues, and confusion in the Cardiff business market.
If your desired name is already registered, you’ll need to choose a different name or modify it. Using a taken name could result in rejection by Companies House or potential legal issues. Our experts can help you brainstorm alternative names that are compliant and market-ready.
It’s not advisable to use a name that’s too similar to another company, especially within the same industry. Similar names can confuse customers and risk trademark disputes. A company name search helps you identify these risks early.
For a company name search in Cardiff, you may need:
Proposed company name
Business entity type (Ltd, LLP, Partnership, etc.)
Jurisdiction (Cardiff / UK)
Owner or shareholder details (if applicable)
Business description
A “high probability” result means your proposed company name is likely to be available, but further checks are recommended. This is why our detailed Cardiff Company Name Search Report includes both identical and similar names for clarity.
Certain words are restricted under UK law (e.g., “bank,” “insurance,” “government”). If you want to use them, you’ll need special approval from regulatory bodies. We guide you through this process if your Cardiff business requires such terms