Start with the two sides of the bridge
The proposal needs to explain the payment that must be made and the cash expected to repay the funding.
Give the amount, immediate purpose and required drawdown date. Then identify the repayment source, expected receipt date and evidence available. These details help determine the amount and period the company actually needs.
The timing gap may arise from a delayed customer collection, an acquisition payment, an asset sale awaiting completion, refinancing or an investor contribution. Each involves different steps before cash becomes available.
Where the requirement covers an ongoing cash shortfall, assess the company’s wider working-capital and refinancing needs alongside the immediate bridge.
The ICD and ICL route
Where the funding and borrowing entities are companies, a private transaction may be structured as an inter-corporate deposit (ICD) or inter-corporate loan (ICL).
The arrangement records the amount, funding date, interest, repayment obligations and other agreed conditions between the corporate parties. The appropriate structure depends on the actual entities, the transaction and applicable requirements.
A family office relationship identifies the source of the funding discussion. The documents must identify the legal entity providing the money and the company receiving it.
PvtFin acts as adviser and arranger, coordinating the requirement with funding counterparties and helping the parties progress the commercial discussion and execution.
Agree the terms around the cash cycle
Private bridge terms are negotiated for the particular transaction. Bring the expected receipt date and the period of borrowing into the discussion early.
| Point to agree | What the borrower needs to establish |
|---|---|
| Amount and disbursement | The facility amount, any deductions and the cash reaching the company |
| Tenure and maturity | The agreed repayment date and its fit with the expected receipt |
| Interest | The calculation basis, payment dates and cash needed for interim payments |
| Fees and expenses | Agreed funding and adviser charges, expenses and when each is payable |
| Guarantees and undertakings | The obligations proposed for the borrower and any other party |
| Early repayment | The process, notice period and any applicable cost |
| Extension | Whether an extension can be considered and the conditions for doing so |
Interest, tenure and other commercial points are settled confidentially between the parties within applicable legal requirements. The agreed position should be recorded clearly before the borrower commits.
Where the funding is unsecured, confirm any guarantee or undertaking separately. These obligations can matter to the company and promoters even where property security is not being provided.
An agreement and cheques may form part of the documentation
Some transactions may involve an agreement and cheques, together with the legal formalities required for that particular arrangement. Others require a more detailed ICD or ICL document set and execution process.
The documents should specify what each cheque is for, who has authority to sign and how the agreed payments will be made. Required corporate approvals and any other applicable formalities need to be completed for the actual parties.
The documentation should fit the commercial agreement and identify the rights and obligations throughout the period of borrowing.
Examine the repayment receipt closely
The repayment source is often called the exit. Its expected date needs support.
For a customer collection, establish the payment position, amount accepted, deductions and any dispute. For refinancing, identify the sanction and conditions still outstanding. For an investor contribution, show the commitment and funding conditions. For sale proceeds, explain the buyer’s obligations and completion milestones.
Tell us which steps remain open and who controls them. An expected receipt tied to a third party’s approval or transfer can affect the suitable maturity and the contingency plan.
If repayment cash comes from a promoter or another group company, explain how it will lawfully reach the borrowing entity. The group position provides context; the cash must be available to the company that owes the money.
Work with the cash remaining after other commitments
Look at the receipt after existing debt, operating payments, statutory dues and transaction costs.
For illustration, a company expecting a ₹10 crore collection may already need ₹7 crore of it for other committed payments. That leaves ₹3 crore before the proposed bridge principal, interest and charges. The facility needs to fit that available amount or have another supported repayment source.
Also check the period before the receipt. If interest is payable monthly, the company needs cash for those payments while it waits for the main collection.
A short cash-flow schedule showing expected receipts, committed payments and bridge obligations makes these points easier to assess.
Allow for a delay before signing
Discuss what happens if the expected receipt arrives late or is smaller than planned. Identify the cash buffer, any alternative repayment source and the obligations falling due during that period.
An extension depends on agreement. Clarify the process and possible terms in advance, especially where the exit depends on a customer, lender, buyer or investor.
Share uncertainties in the first discussion. A disputed receivable, pending bank condition or uncompleted sale can change the funding assessment and suitable structure.
Prepare the first enquiry
Send the borrowing company’s name, business, approximate turnover, amount required, purpose and exact drawdown deadline. Add the expected repayment date, supporting evidence, existing debt and any overdue position.
Useful supporting records include financial statements, current management figures, bank statements, a debt schedule and a cash-flow forecast. The document requirements are settled for the transaction.
Sensitive records can follow through the agreed confidentiality and NDA process. Keep the promoter, CFO or authorised decision-maker available to discuss terms and arrange approvals.
For eligible transactions, PvtFin’s family office route provides for disbursement within 72 calendar hours of the first enquiry. Assessment, funding approval, negotiations and required documentation must all be completed within that period.
Discuss a corporate bridge with PvtFin
For an unsecured bridge requirement of ₹1–500 crore, begin with the payment deadline and the repayment plan. The funding structure and terms can then be considered privately with the relevant counterparties.
You can send this message:
Our company, [name], requires ₹[amount] crore for [purpose]. Funds are needed by [date and time]. Repayment is expected from [source] by [date], supported by [evidence]. The remaining conditions are [details]. Current debt and any overdue position are [summary]. Please assess a private family office bridge, including the appropriate ICD or ICL route.