Channel Financing
Channel financing is a structured program through which the bank offers short-term working capital facilities to the supply chain stakeholders, i.e., the buyer and the supplier.
For example, if the large corporation has to get the supply of raw material from its vendors seamlessly, the vendors want to get the payment on the due date without feeling the pinch of liquidity of funds.
Further, suppose the corporate wants to enhance the sales of its product. In that case, it will have to facilitate its dealers/distributors so that they may not face any problem making the payment to the corporate on the due date or at least just after the sale of the goods.
Channel financing helps the stakeholders to sustain a seamless business flow by avoiding any difficulties relating to working capital.
Why should you consider taking channel financing?
- It allows a steady source of working capital for vendors at a competitive interest rate.
- It lets the corporates introduce payment discipline in channel partners.
- The smooth functioning of the business without strained relationships with your vendors.
- Increase the sales of corporates by avoiding late payment by its dealers and distributors.
Want to get in touch with us? Kindly fill this inquiry form.
