Supply Chain Finance

Integrate, Accelerate & Transform with Bank of Baroda’s Supply Chain Finance

Supply Chain Finance (SCF) is a short term working capital finance to DEALERS/ VENDORS (“Spoke”) having business relationships with LARGE CORPORATE (“Anchor”) to optimise working capital requirements of both Spoke & Anchor. Supply Chain Finance is a fine blend of Bill discounting & overdraft product with the essence to optimise finance and flexibility for the customer. All transactions are linked to a base document (invoice) between the Anchor & the Spoke.

Integrate

An INTEGRATED finance solution for our customer’s business which ensures that dealers/suppliers and Anchor always have working capital when they need it the most.

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Accelerate

Fastest & completely digital system. Every feature of our product has been designed to ACCELERATE customer’s business giving it a cutting edge over others.

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Transform

Our best in class Supply Chain Finance platform optimizes your business synergies and nurtures relationships to TRANSFORM the business of the entire supply chain for the next big leap.

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Advantages of Supply Chain Finance

Supplier/Vendor

• Early payment reduces financial dependence on the buyer
• Reduces the cost of capital by leveraging buyer’s credit rating
• Increases certainty of cash flows
• Provides post-shipment; WIP financing
• Financial discipline

Anchor/Manufacturer

• Minimises investment in working capital
• Reduces cost of goods sold (COGS)
• Reduces total cost of borrowing
• Automation reduces administration cost
• Increases cash flow
• Increases stability of supply chain
• Ensures availability of goods for end users
• Increases sales

Dealer

• Provides much needed working capital for purchase of inventory
• Lower cost of funds than other working capital products
• Increases sense of financial discipline due to short duration
• Automation reduces administration cost

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Need Assistance

• SPOC for system matters: 02266981568 / 02267592511
• SPOC for general matters: 02267592568 / 02266981532 / 02266984960

Working Capital Credit Limits for selected dealers of large corporates enabling them to avail short term financing for procurement of inventory from large corporates.

Dealer Finance- Pull Method

Dealer (Spoke) raises indent to Supplier (Anchor) requesting a consignment of goods. The Supplier (Anchor) raises funding request on Bank’s portal. The validation of the transaction for parameters like availability of credit limit, validity of invoice, overdue position etc. is digitally verified by our Supply Chain Finance system. On successful validation, finance is instantaneously created by the system and disbursement is credited in to the Supplier’s (Anchor’s) account. The Supplier (Anchor) ships the goods on receipt of funds. On due date the Dealer (Spoke) repays into dealer finance account to liquidate the outstanding amount. The entire process is fully automated with real time SMS/email alerts and reports sent to the customer at each leg of the transaction.

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Dealer Finance- Push Method

Dealer (Spoke) raises indent to Supplier (Anchor) requesting a consignment of goods. The Dealer (Spoke) raises funding request to Bank on Vendor/Bank’s portal. The validation of the transaction for parameters like availability of credit limit, validity of invoice, overdue position etc. is digitally verified by the Supply Chain Finance system. On successful validation, finance is instantaneously created by the system and disbursement is credited in to the Supplier’s (Anchor’s) account. The Supplier (Anchor) ships the goods consignment post receipt of funds. On the due date the Dealer (Spoke) liquidates the outstanding invoice amount. The entire process is fully automated and featured with real time e-alerts and e-reports sent to the clients at each leg of the transaction.

Working Capital Facility for vendors of large corporates to access quicker realization of bills and invoices accepted by large corporates to optimize their working capital cycles

Buyer (Anchor) raises an indent/PO on the Supplier (Vendor) requesting a consignment of goods. The Supplier (Vendor) ships the goods & raises invoice on the Buyer (Anchor). The Buyer (Anchor) raises funding request on Bank’s portal based on accepted invoice. The validation of the transaction for parameters like availability of credit limit, validity of invoice, overdue position etc. is digitally verified by our Supply Chain Finance system. On successful validation, finance is instantaneously created by the system and disbursement is credited in to the Supplier’s (Vendors) account. On the due date the Buyer (Anchor) repays into vendor finance account to liquidate the outstanding amount. The entire process is fully automated with real time SMS/email alerts and reports sent to the customer at each leg of the transaction.

Working Capital Limits for large corporates to make payments to their vendors.

Buyer (Anchor) raises indent/PO on the Supplier (Vendor) requesting a consignment of goods. The Supplier (Vendor) ships the goods & raises invoice on the Buyer (Anchor). The Buyer (Anchor) raises funding request on Bank’s portal based on accepted invoice. The validation of the transaction for parameters like availability of credit limit, validity of invoice, overdue position etc. is digitally verified by our Supply Chain Finance system. On successful validation, finance is instantaneously created by the system and disbursement is credited in to the Supplier’s (Vendors) account. On the due date the Buyer (Anchor) repays into vendor finance account to liquidate the outstanding amount. The entire process is fully automated with real time SMS/email alerts and reports sent to the customer at each leg of the transaction.