Maintaining a healthy symbiotic relationship between the manufacturers and end users is vital for a supply network. Producers, sellers, and buyers are holistically inter-connected in a supply network. Maintaining this supply network in a healthy condition is a challenge, especially in the case of funds deficit. Channel financing can help you cover this shortage.
Channel financing is a relatively new term which is tasked to increase the working capital of a business. It is a customized business loan that provides the necessary funds to facilitate the smooth operation of a supply network chain.
Therefore, to ensure the system runs smoothly, you have to maintain sufficient working capital to help your business stay agile and streamline its operations with efficient supply chain management. It is a feasible option for suppliers to keep a healthy flow of working capital. It helps the business operations to function without any hindrance and even improve the yield.
How channel finance facilitates the supply chain?
Channel finance offers numerous benefits making it a favorable financial option when it comes to funding your business’s short-term requirements.
- Streamline business activities
You can opt for channel finance from leading NBFCs like Bajaj Finserv. They offer collateral-free business loans at attractive interest rates. Hence, you don’t need to pledge any security. Moreover, these loans are easy to obtain and get approved and disbursed within 24 hours.
- Exercise freedom over the business
With the Flexi Loan facility from Bajaj Finserv, you can make multiple withdrawals from your loan account to meet your business requirements. Only an interest will be levied regularly as per the amount utilized at day’s end.
Moreover, you only have to pay interest on the withdrawn amount. Thereby, you can reduce your EMI amount by up to 45%. Furthermore, when you have excess capital, you can part-prepay the loan amount without any additional charges. Also, these entire transactions can be conducted online. A Flexi Loan from Bajaj Finserv can be the ideal way to meet the working capital deficit of your business operations.
- Expand business
Channel finance not only helps to stop a supply network from falling apart but also expands the business prospects. For instance, you can set up an additional product or service line-up along with a new supply chain to your existing chain.
- Increase the working capital
If you meet the eligibility criteria to avail channel finance and exhibit a decent credit score, you can attain a substantial loan amount. This way, you could increase the working capital of your organization, thereby managing the supply network better.
How would you avail channel finance?
Before you benefit from the convenience of channel finance, you must know the eligibility criteria. To avail this loan –
- One must be at least 25 years of age which is extended to 55 years.
- A business must have the potential to ensure the credibility to repay the loan
- Enterprises must be at least 3 years of age.
Furthermore, you need to provide your income tax returns for the present year.
From where would you avail this loan?
You could reap the reimbursements of channel financing by securing loans from various financial institutions in India. You can also avoid pledging collateral and avail a Working Capital Loan from Bajaj Finserv. Take advantage of affordable interest rates, minimal documentation requirements, 24 hours loan disbursal, and many other such facilities on offer.
When one has to cater to a host of corporations and consumers, financial constraints could pose a significant problem. Through channel finance, one can solve cash flow issues, embark on a new project or continue operations of an enterprise smoothly.
Whether you’re a powerhouse corporate or a tail-end supplier, channel finance can assist you in gaining leverage on buyers’ strength. It also maintains a business relationship with all the stakeholders. With stress-free and swift availability, channel financing is facilitating the supply network chain to continue running smoothly.
