Channel Financing: Know About The Key Benefits of This Financing in India

Channel Financing: Know About The Key Benefits of This Financing in India
1 min read
23 September 2022

As part of the channel financing system, a corporation provides financing to its dealers for both the backward and forward links of the supply chain.

As a result of channel financing, dealers can procure goods from corporations with additional liquidity. Dealers of the Corporate are provided with a revolving line of credit like an overdraft, with payments from such a working capital facility restricted to them. 

An integral component of Channel Finance's mission is to provide integrated commercial and financial solutions to its customers' supply and distribution channels. Channel Finance supports our clients' commercial relationships with their suppliers and customers.

In the commercial world, Channel Finance's objective is to add value to supply and distribution channels by providing unique solutions. Clients benefit from short-term lending by leveraging qualified receivables as collateral, reducing accounts receivables, and controlling sales/distribution channels by obtaining working capital support. 

In addition to improving supplier relations and enhancing cash flow management, payables discounting provides additional value. All invoice financing dealers of a corporation can take advantage of Channel Financing, which caters to supply chain links both backward and forward. 

Dealer Financing provides additional liquidity to dealers for procuring goods from corporations to meet their working capital needs. Dealers of the corporation are provided with a revolving line of credit that functions as an overdraft, and payments are restricted to corporations.

 

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Ankita Sharma 0
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