Vendor Finance
Enabling Vendors to increase sales on deferred payment
terms, while receiving timely Working Capital cash flow.
Understanding Vendor Finance
A Vendor Financing Product provides Vendors/Suppliers with credit facilities, allowing them to offer deferred payment terms to Anchors. This solution improves cash flow, secures sales, and strengthens supplier-buyer (Anchor-Vendor) relationships. Structured with the Anchor, who recommends vendors and commits to payment on the due date, but Vendor remains the borrower on record.
Features
Tenor-based credit limits
assigned to Vendors.
Borrower on record will
be Vendors; Off-balance
sheet facility for
the Anchor.
Invoice-backed
disbursements credited
to the Vendor’s account.
Anchor repays against
accepted invoices for
goods received.
Tenor-based credit limits
assigned to Vendors.
Borrower on record will
be Vendors; Off-balance
sheet facility for
the Anchor.
Invoice-backed
disbursements credited
to the Vendor’s account.
Anchor repays against
accepted invoices for
goods received.
Benefits
Unlock the Benefits of Vendor Finance
Benefits for Vendors
- Augments Working Capital for Vendor
-
Vendors are able to increase profitability by
availing credit limits at reasonable rates
and/or increase their sales - Enables Bank Credit without collateral/security
-
Source of Finance is committed (unlike
TREDs) and available at reasonable rates -
Improves the overall supply chain efficiency
for the vendor
Benefits for Anchors
- Augments Working Capital
- Off-balances sheet funding for Anchor
-
Enables and improves cash on the balance sheet by
improving days payable outstanding - Free cash flow enables Zero-Cost Working Capital
-
Enables enhanced Credit Period and/or Cash
Discount from Vendors - Enhances Vendor Loyalty
How It Works
Apply Now
Get Started with Vendor Finance
