Dealer Finance
Helps Dealers purchase goods with flexible repayment terms,
optimizing cash flow without straining Working Capital.
Understanding Dealer Finance
A Dealer Finance Product is a structured credit solution that enables dealers to acquire inventory or services with flexible repayment terms. It helps optimize cash flow, minimize capital constraints, and maintain a steady supply without impacting Working Capital. This facility is arranged in collaboration with the Anchor, who recommends dealers and may enforce stop supply in case of non-repayment.
Features
Fixed tenor with distinct
repayment dates for
each of the invoices.
Dealer is the
obligor/borrower.
Off-balance sheet facility
for the Anchor.
Disbursements are
invoice-backed and
credited to the Anchor’s
account.
Fixed tenor with distinct
repayment dates for
each of the invoices.
Dealer is the
obligor/borrower.
Off-balance sheet facility
for the Anchor.
Disbursements are
invoice-backed and
credited to the Anchor’s
account.
Benefits
Unlock the Benefits of Dealer Finance
Benefits for Dealers
-
Dealers may be able to increase profitability by
availing cash discounts from Corporate / Anchor - Availability of liquidity to increase Sales & Turn-over
- Steady and economical source of Working Capital Financing for the Dealer
-
Flexible tenor with distinct repayment
dates for each of the invoices - Source of Finance at a reasonably lower rate
Benefits for Anchors
- Augments Working Capital
- Off-balances sheet funding for Anchor
- Converts receivables into cash and improves liquidity
-
Release of funds from the Balance Sheet resulting
in improvement in financial ratios -
Enhances Sales and used as effective
medium to capture market share - Reduces risks of bad debts
-
Streamlines collections while reducing
administrative cost
How It Works
Apply Now
Get Started with Dealer Finance
