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Bill/Invoice Discounting Under Value Chain Finance

Purpose

  • To provide easy finance to eligible vendors/sub vendors of investment grade corporates with good financial discipline by way of discounting of bills/invoices drawn by the vendors/suppliers on the corporates.

Target Clients

  • Anchor: Manufacturing/Services enterprises, except those involved in - Gems and Jewellery, Agriculture based, real estate and NBFC Vendor/Supplier: All vendors/suppliers recommended by Anchor

Benefits

Benefits to Anchor

  • Better price negotiation with vendors/suppliers.
  • Uninterrupted supply of raw material.
  • Strengthens relationship with value chain partners.

Benefits to vendor

  • Availability of hassle free finance at attractive terms.
  • Low/No security /guarantee requirement
  • Higher quantum of finance as the margin requirement shall be much lower than the conventional route.

Highlights of the eligibility criteria for the Anchor

Vendor Bill / Invoice Discounting (large Manufacturers/service providers)

  • Minimum Turnover as per last ABS –Rs. 200.00 crs
  • Maximum Turnover as per last ABS – Rs. 2000.00 crs
  • External Credit Rating BBB and above.
  • Positive operating profitability at least for last three years.
  • Minimum Establishment in the Business – 5 years.

Vendor Bill / Invoice Discounting (small Manufacturers/service providers) / (Sub-vendors)

  • Minimum Turnover as per last ABS –Rs. 50.00 crs
  • Maximum Turnover as per last ABS – Rs.200.00 crs
  • Positive operating profitability at least for last two years.
  • Minimum Establishment in the Business – 3 years.
  • CMR Rating from 1 to 5.

Margin

  • 10% of the Bill/Invoice amount.

Rate of Interest

  • Competitive rate of interest based on Repo rate/ MCLR

Tenor of Finance

  • Finance will be provided for upto 90 days.

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