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 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

Margin

• 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.