What is Channel Financing?

Channel Financing enables SBIGFL clients to discount their receivables on account of supplies made to their dealers. SBIGFL sets up lines of credit on its clients and funds the clients within the set limits for supplies to the dealer. On the due date the payment is received from the dealer.

Channel finance ensures the immediate realization of sales proceeds for its client, making it practically a cash sale. On the other hand, the dealer gets credit for a pre decided tenor sanctioned by SBIGFL, enabling smooth liquidity management.

Product Features –

• Financing the seller by prepaying upto 95% of the invoice value/ Bill value
• Protection against default in payment by the dealer by arranging for insurance cover
• Collection of receivables
• Maintenance of accounts relating to accounts receivables (A/R)