Home You are here : path  Products path Corporate Loans path Union Channel Finance

img Union Channel Finance

Union Channel Finance

Union Channel Finance is a fully automated Supply Chain financing product for Dealers and Vendors of large Anchor / Original Equipment Manufacturer (OEM)Entities. This unique facility streamlines the cash of Channel Partners towards enhanced efficiency.

Sr No

Parameter

Scheme Guidelines *

1

Eligibility of OEM

  1. a. Any Company engaged in manufacturing/processing of widely acceptable product/Involved in distribution of widely acceptable products such as retail chain etc.
  2. b. Should have been in the field for a minimum period of 5 years with minimum turnover of Rs.100 crore during the immediately preceding 2 years.
  3. c. Shall have positive Net worth and satisfactory leverage

2

Eligibility of Dealer / Vendor

  1. a. Any business unit engaged in supply of inputs/raw materials to OEM or engaged in distribution / sale of finished products manufactured by OEMs.
  2. b. Should have been in the field for a minimum period of 3 years and earned Operating profit during the immediately preceding 2 years.

3

Nature of Facility

The facility includes

  1. a. Dealer Finance- Dealer Finance enables dealers to procure goods from OEM Corporates. Under this scheme, Bank offers short term finance at competitive interest rate to pay off OEM Corporates on upfront basis. The finance is repaid by Dealers on due date as per agreed tenure.
  2. b. Vendor Finance- Under vendor Finance, Bank makes payment on behalf of the OEM Corporate to their Vendors for supplies made against bills/invoices (to unlock working capital for vendors). The funding is liquidated by the OEMs on due date as per agreed tenure / terms.

4

Quantum of Finance

  1. a. Umbrella limit for Anchor OEM Company: Minimum Rs 5 crore & Maximum Rs 1000 crore
  2. b. Vendor /Dealer: Minimum Rs 10 lakh & Maximum Rs.100 crore (With Recourse)/ Rs. 25 Crore (Without Recourse to OEM)

5

Repayment

Individual bill/invoice shall be repaid within due date subject to maximum of 120 days from the date of financing of the bill/invoice.

6

Rate of Interest

As per rating of Anchor, Dealer/ Vendor.

6

Benefits for Anchor Companies

Dealer Finance

  • Accelerated Cash Flows.
  • Improved operating ratios by Conversion of debtors into cash.
  • Uninterrupted production & Increase in sales.
  • Strengthens partnership with dealers.
  • Reduced inventory.

Vendor Finance

  • Enables the Corporate to consolidate their payment process across all vendors
  • Timely supply of raw materials from vendors
  • Efficient management of working capital
  • Strengthens partnership with vendors

7

Benefits to Dealers

  • Easy Financing option on automated portal.
  • Choice of inventory and consequently higher sales.
  • Online portal for uploading invoice details any time.
  • Lowest turnaround time for funding.

8

Benefits to Vendors

  • Timely receipt of payments
  • Accelerates cash flows for uninterrupted production

* Conditions apply, for further details, please visit our nearest CAPS Branch.