Distribution Finance For Corporates

Inventory funding for distributors, dealers and retailers across the supply chain

Channel Financing Benefits – Corporates

Better Receivables Management

Get paid upfront and reduce your days sales outstanding.

Grow Your Business

Working capital lines for your dealers to purchase more inventory.

Improve Dealer Loyalty By Giving Them Timely Finance

Increase program and credit penetration by covering more dealers across Tier 1, 2 and 3 cities.

State of the Art Platform to handle all your invoices

No more digging into old emails for invoices. Manage all invoices & multi-lender dealer financing programs through a fully secure and easy-to-use platform.

Real Time MIS Reports

Make informed decisions fast – bulk upload invoices, track credit limits and generate MIS reports in just a few clicks!

Loan Frame frees you up from dealing with multiple lenders by managing all lender relations for you on one platform.

Our tried and tested platform supports clients in very diverse industries - battery manufacturers, home appliance makers, IT & peripherals distributors, medical device suppliers, industrial equipment manufacturers, FMCG companies, surveillance products makers, paint companies and many more.

What is Channel Financing?

Channel financing (also known as dealer finance and supply chain finance) is an inventory finance loan offered in association with a lender to your dealers, (i.e. distributors & stockists of a manufacturing or trading company). It enables you to reduce your credit cycle to zero days, as your dealer customers pay you upfront.

What Do I Need to Organize Channel
Financing for My Sales Network?

To organize channel financing for your dealers, distributors & stockists, you should:

  • 1. Own a viable manufacturing or trading company
  • 2. Have a network of dealers, distributors or stockists

An Award Winning Platform To Address Your Working Capital Challenges

Loan Frame won India’s most prestigious financial sector awards—FE Best Banks awards 2019 – in the fintech category

A Cutting Edge Platform At Your Service

A feature rich platform for corporates that delivers real-time time information, integrates all funding relationships in one view and provides easy invoice handling.

Powerful reports that ease payment reconciliation for corporates.

How Channel Finance Works

step 1

The supplier corporate raises invoice

step 2

The dealer gets instant notification and approves the invoice

step 3

The lender disburses the invoice amount to the supplier corporate

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Channel Financing FAQs

What is the objective of channel finance?

The main objective of channel finance (or dealer finance) is to enable manufacturing and trading companies to sell to their dealers, distributors and stockists on cash basis and eliminate debts.

Who can benefit from channel finance?

Both manufacturing and trading companies and their dealers, distributors and stockists can benefit from channel finance.

Isn’t channel finance for dealers, distributors and stockists?

Yes, channel finance is primarily targeted at dealers, distributors and stockists of manufacturing and trading companies. However, unlike other loans, channel finance is organized by companies (through lenders) for their dealers, distributors and stockists.

For what purposes can channel finance be used?

Channel finance can only be used for purchase of goods from the company that the dealer, distributor or stockist represents.

Can channel finance be used for any other purpose?

No, channel finance cannot be used for any purpose other than that mentioned in the offer document, i.e. to purchase goods from the designated company.

Are there any processing fees applicable?

No, there is no processing fee for the corporates. Dealers, distributors and stockists may have to pay a one-time processing fee to activate their channel finance limit (as per the channel finance scheme or corporate program).

How soon can I avail of channel finance?

If you fulfil the eligibility criteria, you can get channel finance within 3-5 days.

What are the typical loan tenures like?

Since channel finance is a short-term loan, it normally has a revolving tenure of 7-120 days.

What are the different repayment options?

Channel finance can be repaid via NEFT, RTGS, cheque or through direct debit (ECS and NACH) from the bank account.