Lease Rental Discounting against Commercial & industrial Premises

Lease rental discounting (LRD) is a financing mechanism under which a term loan is offered against rental receipts derived from lease contracts with corporate tenants. The owner of the property gets debt financing based on the discounted value of the future rentals and the underlying property value. It is usually offered against income-producing commercial assets, such as office properties, retail malls and logistic parks.

Lease Rental Discounting for Warehouse & Logistics Park

Warehouse & logistics parks have come up across the peripheries of metro cities to cater to the needs of e-commerce enterprises, as well as large multinational & Indian FMCG entities operating in the post-GST era. Businessmen with large land parcels on the outskirts of metro cities have converted their land into large warehouse & logistics parks, which are leased  to corporates for the long term. 

This is one of the most lucrative businesses in India, given its secured & steady income, which is better than bank FD rates that sometimes offer negative returns due to inflation. Lease rental discounting (LRD) is the fastest way of obtaining finance from financial institutions against the rental receipts for these premises. 

LoanDeals can assist borrowers with customized solutions for warehouse & cold storage business, such as:

  • Loan against cold storage property
  • Loan against warehouse properties
  • Loan against warehouse receipts by way of security of other collateral properties 
  • Loan for purchase of readymade warehouse & cold storage property

Loans can be arranged for the warehouse with the following end use structures:

  • Purchase of warehouse
  • Expansion of existing facilities 
  • Working capital finance for business

Options Available to the borrowers

  1. Fresh LRD – These loans are sanctioned based upon the future monthly rental income over the period of the lease deed and the value of the collateral security offered to the lending institutions. These loans can be taken in the form of drop line loan limits or term loans upto 80% of the net rental received per month. We, at loan deals, offer you well-structured loans that are customized to meet your requirements.
  2. Refinancing of current Loans : One can take advantage of the low interest rate regime and reduce the monthly EMI outflow and reorganize the financial health of the borrowing entities.
  3. Debt Consolidation: Combine multiple property & bank loans into one basket loan with a single financier for better financial management. It becomes taxing for business enterprises to manage rents received on various dates, as well as make EMI payments to multiple financiers on different dates. Such confusion can lead to repayment mismatch, and increase the chances of default. 
  4. Top up existing facilities for further expansion / Top-up Loans: Sometimes, due to various reasons, your existing banker may not support your warehouse & logistics business in case you need extra funds. In this case, you can use the option of transferring your existing loan to a new financier, with a top up loan on your outstanding, without taking any additional security.

Speak to us or WhatsApp  +91-8425804441  on for expert guidance in securing the best financing options for your real-estate projects.

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