Features and benefits
Funds up to Rs. 55 lakh
Get a high-value loan from Bajaj Finserv to source raw materials, manage logistics, and address all your supply chain needs.
Obtain funds for your supply chain without having to offer an asset as security.
Approval in 48 hours
Apply online with just two documents* to get approval within 48 hours*.
Address changing supply chain needs by borrowing when you need them and prepaying when you can for free with our Flexi business loan.
Up to 45%* lower EMIs
Reduce your monthly outgo by opting to pay interest-only EMIs for the first part of the tenor with a Flexi loan.
Online loan management
Access your supply chain finance account from anywhere and with our customer portal - My Account.
What is supply chain finance?
Supply chain financing encompasses a set of short-term credit solutions to improve the working capital, remove hindrances to manufacturing and production, and lower the financing costs of buyers and sellers linked in a transaction. There are three main parties involved; the buyer, the seller, and the financing institute. As a financing institute, Bajaj Finserv offers supply chain finance of up to Rs. 55 lakh on simple eligibility terms. Businesses can get instant approval in just 48 hours* by applying online and submitting the basic documents.
Bajaj Finserv brings supply chain finance in India to provide sufficient liquidity in the supply chain so that the movement of goods is not blocked due to fund shortage. It offers a low-risk, cost-effective means of providing suppliers with liquidity by leveraging the credit rating of your customers (buyers). Businesses can thus make the most of this funding to streamline their supply chain.
How supply chain finance works?
Supply chain finance is a way of improving cash flow by allowing buyers to pay their suppliers later, while giving suppliers the option to get paid earlier by a third-party financier.
Supply chain finance is a process where a buyer initiates a payment to a supplier through a financier. The financier pays the supplier immediately and collects the payment from the buyer later. This reduces the financing costs and risks for both parties.
Supply chain finance is a form of reverse factoring, where a buyer approves the invoices of a supplier for financing by a bank or other institution. The supplier gets paid faster, while the buyer gets more time to pay.
Techniques used in supply chain finance
Some techniques used in supply chain finance are:
- Reverse factoring: The buyer approves the invoices of the supplier for financing by a third party, who pays the supplier and collects from the buyer later.
- Dynamic discounting: The buyer offers discounts to the supplier for early payment, based on the number of days before the due date.
- Payables finance: The buyer sells its accounts payable to a financier, who pays the supplier and collects from the buyer later.
Supply chain finance works in two ways:
Invoice discounting - This is a means of unlocking cash that’s tied up in your unpaid customer invoices. The invoices generated by a business (seller) are discounted, and loans are provided so that a business does not have to wait for bill clearance and make payments in time. You, the seller, approach Bajaj Finserv to summarise your customer invoices to receive funds immediately as a discounted amount. Simultaneously, the buyer gets an extended period for bill payment which the financial institution collects in full on maturity.
Purchase order financing (invoice factoring): This provides a way for you (seller) to purchase inventory or manufacture goods by leveraging a purchase order made by a customer. You (seller) can approach Bajaj Finserv with a purchase order. Bajaj Finserv then guarantees credit to your supplier and collaborates with it to fulfil the order. Your supplier ships the order to your customer, who, in turn, pays Bajaj Finserv. Lastly, we remit funds to you minus our financing costs.
We offer cost-effective supply chain financing. Buyers and sellers can negotiate the supply chain finance terms based on the leverage, that is, the invoices or purchase orders and the credit ratings of the parties involved.
Eligibility criteria and documents required
24 years to 70 years*
(*Age should be 70 years at Loan Maturity)
At least 3 years
685 or higher
Supply chain finance works best when the buyer's credit rating is higher than the seller's credit rating.
The main documents required for supply chain financing are identity proof, address proof, financial documents and business ownership documents.
Interest rate and charges
Bajaj Finserv offers supply chain loans that come with nominal interest rates and no hidden charges. For a complete list of the applicable fees, click here.
How to apply
- 1 Click on ‘APPLY ONLINE’ to open the application form
- 2 Enter your basic personal and business details
- 3 Upload your last six months bank statements
- 4 Receive a call from our representative who will guide you on further steps.
Once approved, you will get access to funds in just 48 hours*.
Supply chain finance, also known as reverse factoring, helps businesses improve their cash flow by letting them pay their suppliers over a longer period of time, while giving their large and small suppliers the option to get paid early.
Managing the supply chain is the combined responsibility of your business’s operations and finance departments. While your operations team is responsible for the movement of goods, your finance arm foots the bills from your suppliers.
Help them keep your business’s supply chain running smoothly by opting for a business loan. Get up to Rs. 55 lakh for maintaining a healthy balance of working capital.