What Is Debt Advisory and How It Differs From Credit Rating Advisory

“Debt advisory” and “credit rating advisory” are related but distinct services, and companies planning a fundraise benefit from understanding where each one fits.

What Debt Advisory Typically Covers

Debt structuring. Helping a company think through the right mix of working capital, term loans, and other instruments for its specific funding need.

Lender identification. Helping identify banks or NBFCs whose lending appetite and terms are likely to fit the company's profile and requirement.

Financial packaging. Organising the financial case — projections, collateral position, repayment capacity — into the format lenders typically expect.

Coordination through sanction. Supporting the company through the appraisal, negotiation and documentation process with the chosen lender(s).

How This Differs From Credit Rating Advisory

Credit rating advisory is specifically focused on preparing a company for a formal rating assessment by a SEBI-registered CRA. Debt advisory is broader, covering the overall fundraising process — of which a credit rating may be one component, not the whole exercise.

Where the Two Overlap

For companies raising larger facilities where a rating is required or beneficial, debt advisory and credit rating advisory often run in parallel — the rating supports the lender discussion that debt advisory is helping structure and negotiate.

Frequently Asked Questions

Do we need both debt advisory and credit rating advisory?

Not necessarily — it depends on whether a rating is required or beneficial for the specific facility being raised; smaller facilities may only need debt structuring support.

Does debt advisory include negotiating final loan terms with the bank?

Debt advisory typically supports preparation and coordination through the sanction process; the final commercial negotiation and sanction decision remain between the company and the lender.

Can debt advisory help even without a formal credit rating?

Yes — many smaller facilities are sanctioned based on the bank's internal assessment without requiring an external rating.

Does FinMen Advisors arrange the loan or introduce lenders directly?

FinMen Advisors supports financial packaging and preparation; specific lender relationships and final sanction decisions rest with the company and the bank or NBFC.

Planning a fundraise and unsure whether you need debt advisory, credit rating advisory, or both? FinMen Advisors offers a no-cost initial assessment to help you figure out the right approach.