Distribution Finance For Dealers, Distributors & Retailers

The Right Working Capital Solution For Your Business

Fast flexible finance, huge savings

Fast Approvals, Limits from Rs 50,000 to Rs 5Cr

We cover a wide spectrum of distributors with different financing needs.

Save Up To 50% In Interest Cost

Pay-as-you-go limits. Get the flexibility that your business needs.

Channel Financing Benefits –
Dealers, Distributors & Stockists

Flexible Loan Terms

Provides more liquidity to the dealers, without any minimum withdrawal constraints.

Instant Funds to Grow Dealership

Dealers get more funds (in addition to existing working capital) to grow their business.

Minimal Documentation

Simple application process with minimal documentation and fast disbursal.

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

Channel Financing At A Glance

Channel Finance Limits From ₹50,000 - ₹5 Crores

Channel Financing Tenure Up to 90 months

Interest Rates From 9% pa

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 financing?

The main objective of channel financing (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 financing?

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

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

Yes, channel financing 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 financing be used?

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

Can channel financing be used for any other purpose?

No, channel financing 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 financing scheme or corporate program).

How soon can I avail of channel financing?

If you fulfil the eligibility criteria, you can get channel financing within 24 working hours (i.e. 3 working days). However, some applications may take 3-5 days longer.

What are the typical loan tenures like?

Since channel finance is a short-term loan, it normally has a revolving tenure of 30-90 days.

What are the different repayment options?

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