Case Study 5: Enabling Business Funding Without Disrupting Wealth

In 2021, a Bangalore-based entrepreneur engaged with Entrust Family Office for investment advisory and ongoing financial support. Over time, the relationship expanded beyond investments to include a range of financial and operational services. 

As part of the family’s evolving needs, the client sought funding support for his son’s new venture in the sports infrastructure space. The business, being at an early stage, did not yet have the financial track record required to secure traditional funding.  

Challenge 

The requirement brought up multiple constraints: 

• Difficulty in securing a loan due to the absence of financial history for the new venture. 

• Existing loans against securities limited the ability to raise further debt through that route. 

• The client wanted to avoid liquidating investments to prevent tax outflows and disruption to long-term wealth planning. 

• The process involved complex coordination, documentation, and lender requirements. 

The family needed a solution that could unlock liquidity while preserving their existing portfolio and ensuring tax efficiency. 

Approach 

Entrust worked closely with the client to evaluate alternatives and executed a structured solution: 

• Recommended a loan against property, using the client’s residential asset as collateral. 

• Coordinated end-to-end with the lending institution, including documentation, legal and technical verification, and financial assessment. 

• Facilitated submission of income tax returns, bank statements, and other financial records to establish repayment capability. 

• Structured the loan in tranches, aligned to the business’s funding needs over time. 

• Leveraged the financial strength of the client’s existing business entities to support approval for the new venture. 

• Ensured that the solution avoided liquidation of investments, thereby preventing capital gains tax outflows. 

• Enabled interest on the loan to be treated as a business expense, improving tax efficiency at the company level.  

Outcome 

The client was able to successfully raise funds for the new venture without disrupting his investment portfolio. Despite the complexity and time involved, the process was managed seamlessly through Entrust’s coordination and persistence. 

The family benefited from: 

• Access to timely funding for a new business venture. 

• Preservation of long-term investments and avoidance of unnecessary tax outflows. 

• A structured and compliant approach to borrowing. 

Beyond this transaction, the client has continued to rely on Entrust for a wide range of needs, including capital gains account management, loan facilitation, and ongoing financial support. 

The client’s continued engagement and multiple referrals within his network reflect a strong sense of trust and satisfaction.