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Bill/Invoice Discounting Under Value Chain Finance

  • Features
  • Benefits
  • Terms and Conditions
  • Interest Rates & Charges
  • 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 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 crores
  • Maximum Turnover as per last ABS – Rs. 2000 crores
  • External Credit Rating BBB and above
  • Positive operating profitability at least for the 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 crores
  • Maximum turnover as per last ABS – Rs. 200 crores
  • Positive operating profitability at least for last two years
  • Minimum establishment in the business – 3 years
  • CMR Rating from 1 to 5

  • 10% of the bill/invoice amount.
  • Rate of interest linked to MCLR/REPO rate linked ROI, BRLLR.

Tenor of Finance
  • Finance will be provided for up to 90 days.

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