Maintaining a good relationship with your clients and suppliers is important. They constitute the various components of a supply chain. In order to ensure that a supply chain functions smoothly, you have to maintain your working capital, whether you have the funds on hand or not.
In such a situation, channel financing could be a good idea. Channel finance is a types of business loan. It provides funding to facilitate the smooth working of the supply chain.
Channel finance is a feasible option as it helps the supplier avail working capital and also provides cost optimisation benefit for the buyer.
Benefits of a channel finance
Channel finance offers various benefits that make it favourable to look for when it comes to financing your business’ short-term needs.
Avail a collateral-free finance
Arranging for a collateral might seem like a difficult task when you are struggling to make ends meets in your business. However, you need not think about a collateral when you opt for channel finance. Financial institutions like Bajaj Finserv offer channel financing without a collateral. This makes the process easy and quick. Without pledging any personal assets you can avail channel financing up to Rs. 30 lakh.
Benefit from the flexi loan facility
The flexi loan facility in channel financing helps you use your finance as per your requirement and convenience. You can withdraw as many times as you want and as much as you need. You can choose to pay interest only for the amount that you use and consequently lower your EMIs by 45%.
Access to quick approval
Channel Finance is a collateral-free finance, which makes its process quick and easy. You require minimal documents to apply for it which further accelerates the process. With Bajaj Finserv your loan application gets approved within 24 hours.
Choose from pre-approved offers
You can get channel finance from various banks and financial institutions, like Bajaj Finserv. Bajaj Finserv brings you pre-approved offers for personal loans, home loan, business loans and a host of other financial products. Not only does this simplify the process of availing financing, but also helps you save on time. All you have to do is share a few basic details and check out your pre-approved offer.
You can apply online
You can avail channel finance online no matter where you are. You can use your easy-to-use online account to know the details of the loans. You can access your supply chain loan account anytime and from anywhere.
Simple eligibility criteria
Availing channel financing is quite convenient as its eligibility criteria are simple and convenient. To avail these loans, you have to be between 25 to 55 years of age. Your business should have the vintage of 3 years to ensure its credibility to repay the loan back. You also have to file and show your income tax returns for the year.
To sum up
When you have to cater to a large number of corporates and buyers, financial constraints can pose to be a big problem. Through channel finance, you can solve such cash flow issues, take up new projects and orders and continue running your enterprise smoothly. As a big corporate or a tail end supplier, channel finance helps you gain a leverage on the strength of the buyers and eventually maintain your business relations with all your stakeholders. With easy and quick availability, channel financing can prove to be a win-win for all in the supply chain.