Dealer Finance

Dealer Finance

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Benefits Of Channel Finance / Channel Financing:

  • Discounting of Trade Bills drawn by a company and accepted by its Dealers / Distributors / Channel Partners.
  • Providing Overdraft facility to the dealers / distributors who have business dealings with large Corporate.

Advantages to Corporate:

  • Assured availability of Working Capital finance to their channel partners at lower than current cost of credit.
  • Corporate can use Channel Finance as a marketing tool and strengthen their relationship / reward loyalty of their Channel Partners.
  • Release of funds from the Balance Sheet resulting in improvement in financial Ratios.
  • Conversion of Balance Sheet into an Off Balance Sheet liability.
  • Greater efficiencies in the Corporates' receivable management and cash management process.
  • Ability to introduce payment discipline with their Channel Partners.
  • Increased Sales through higher purchasing power for Channel Partners.

Advantages to Dealers/Distributors, i.e. the Channel Partners: -

  • Steady and cheaper source of Working Capital financing for Channel Partners
  • Channel partners can increase Sales through higher purchasing power
  • Clean facility up to certain limits
  • Simplicity of documentation and approval procedures
  • High service and delivery standards compared to current Banker
  • Channel partners may be able to increase profitability by availing of cash discounts from Corporate

Are you supplying or buying from a large corporate? Give us a call to find out channel financing option(s) for you. .