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Bill/Invoice Discounting Under Value Chain Finance
Interest Rates & Charges
Most Important Terms & Conditions
Bill/Invoice Discounting Under Value Chain Finance : 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
Bill/Invoice Discounting Under Value Chain Finance : Features
- 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.
- 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.
Bill/Invoice Discounting Under Value Chain Finance : Interest Rates & Charges
- Rate of interest linked to MCLR/REPO rate linked ROI, BRLLR.
Tenor of Finance
- Finance will be provided for up to 90 days.
Bill/Invoice Discounting Under Value Chain Finance : Most Important Terms & Conditions
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.