Case Studies

1. TCAP helping a Bengaluru based company to raise working capital which is providing services like Facility Management, Employee Transportation to large multinational ITES companies.

Client is a Bengaluru based company providing services like Facility Management, Employee Transportation to large multinational ITES companies. Started in 2011, Client has a strong balance sheet and has grown exponentially. His turnover is now Rs. 20crores.

Given his expertise in the field, client wants to acquire more business funded by external finances. In this process he has realised that his business model is asset light and do not have much to provide as collateral except his Service Level Agreements and receivable invoices. For all the services the company provides, they will raise invoices and their customer will make the payment after 60 or 90 days depending upon the agreement. Thus the payment gets stuck and his capital will be blocked till they get the payment. Invoice raised against transportation services and maintenance services do not fit in the box of a traditional evaluation system of a Bank or Financial Institution which has made raising funds very difficult. Given the scenario of no assets to mortgage and non-marketable invoices, client was worried that his expansion plans are hindered because of denied access to timely financing. While searching for financial advisory firms online, he came across Trustless Capital. He approached Trustless Capital. A New journey has begun.

How did Trustless Capital Assist?

TCAP is a market place which will bring investors and borrowers under one roof. TCAP uses cutting edge block chain technology to bring transparency to investors pass on the benefits to the borrower. TCAP has arranger model and direct sales model to service the customers. In arranger model, the arranger can bring both investors and borrowers to use the chain and get the blockchain benefits to his investor and can execute the trades on the TCAP market place. In the Direct sales model, TCAP has few investors onboard and if the borrower fits the credit criteria, the invoice will be funded instantly. Some other benefits which TCAP offers is, the seamless integration of Anchor, Vendor systems and integrated GST verification, Escrow based payment mechanism which helps eliminate fraud and co-mingling risk of cash flows.

TCAP as a process of on boarding, got the credit evaluation done for both Vendor and Anchor. One the credit team has approved the client for on boarding, the Escrow account is setup for this particular relationship and the necessary bipartite and tripartite agreements are signed for approving the limit and processing the payments. Now the client is ready to get finance against the invoice and the moment his invoices are validated by the anchor, the payment was done within 2 hours.

TCAP is on a mission to change how finances are accessed by institutions and individuals across the globe.