Supply Chain & Logistics Finance services

Eligible borrowers typically include,

• Manufacturers, traders, distributors, and logistics companies
• MSMEs and large enterprises
• Businesses with regular purchase orders or invoices
• Minimum 6-12 months of operational track record

Common supply chain and logistics finance products include,

• Invoice discounting
• Vendor financing
• Buyer led supply chain finance
• Inventory financing
• Warehouse receipt financing
• Freight and logistics financing

Interest rates usually range between

• 8.5% to 16% per annum.

Rates depend on,

• Credit strength of buyer/seller
• Transaction volume
• Tenure and risk profile
• Type of financing structure

Tenure is generally short term and ranges from,

• 30 days to 180 days

Some logistics financing solutions may extend up to 12 months, depending on cash cycle length.

Most supply chain finance products are,

• Unsecured or partially secured

Security may include

• Invoices
• Purchase orders
• Inventory or warehouse receipts
• Escrow of receivables

Funding is usually provided up to,

• 70% to 90% of invoice or inventory value

Limits depend on transaction quality and counterparty creditworthiness.

Under invoice discounting,

• Businesses receive immediate funds against raised invoices
• Lender pays the balance after customer payment
• Helps reduce Days Sales Outstanding (DSO) and improve liquidity

• Buyer led SCF: Financing based on the credit strength of large buyers
• Supplier led SCF: Financing based on supplier invoices and performance

Buyer led structures often offer lower interest rates.

Logistics finance supports,

• Fleet expansion
• Fuel and toll expenses
• Freight bill discounting
• Cash flow smoothing during long receivable cycles

This helps logistics firms maintain uninterrupted operations.

Approval timelines are usually fast,

• 3 to 10 working days

Digital platforms and fintech led models can enable same week disbursement.

Yes. Supply chain finance is highly MSME friendly because,

• It relies on transaction data
• Reduces need for traditional collateral
• Improves access to short term liquidity

Key risks include,

• Buyer default or delayed payments
• Invoice disputes
• Inventory price volatility
• Concentration risk on a single buyer

Lenders mitigate these through escrow mechanisms and credit filters.

Repayment is typically,

• Automatic through customer payment
• Linked to invoice settlement
• Routed via escrow or collection accounts

This ensures timely closure of finance cycles.

Supply chain finance helps businesses,

• Improve cash flow predictability
• Reduce working capital stress
• Strengthen vendor relationships
• Scale operations without increasing debt burden