Supply Chain Finance

Overview

Supply chain finance is an innovative funding solution designed to enhance the working capital of businesses by optimizing cash flows and improving profitability. This short-term, collateral-free working capital facility benefits both small and medium-sized buyers and suppliers. It facilitates a seamless financial transaction that optimizes the supply chain, ensuring that Both parties involved—suppliers and buyers gain maximum efficiency and enhanced profitability.

In a supply chain finance setup, three key parties are involved:

Supplier: The entity providing goods to the buyer.

Buyer: The entity purchasing goods from the supplier.

Financer: The entity offering financial solutions to the supplier and buyer.

Key Terminologies

Anchor: A corporate entity that facilitates supply chain finance for its vendors or dealers by arranging financing from a financer.
Supplier: Also known as a vendor, this is the business entity supplying goods to the buyer.
Buyer: The business entity purchasing goods from the supplier/vendor.
Dealer: A buyer who procures goods from the distributor or manufacturer.
Usance: The allowable period between the date of disbursement and its repayment, essentially the credit period provided by the financer (e.g., a 60-day usance period means the repayment is due on 60th day from the date of disbursement).

Solution We Offer

We provide a range of supply chain finance solutions at Ratnaafin, the Supply Chain Finance Company in India, tailored to meet the unique needs of your business:
Vendor Finance: Enhances cash flows for vendors by providing early payment solutions.
Dealer Finance: Facilitate smooth operations for dealers with efficient financing options.
Purchase Invoice Discounting: Offers immediate funds by discounting purchase invoices.
Sale Invoice Discounting: Provide quick access to funds by discounting sale invoices.

Documentation

While document requirements can differ between entities, some of the most commonly requested documents include:

Best Suited For

Our supply chain finance solutions are ideal for:

Anchor Corporates:
- Avail cash discounts on early payments to suppliers.
- Ensure payment discipline and reduce payment risk by making timely payments to MSMEs.
- Allow extended credit periods without any worry.
- Maintain supply chain stability and reliability.