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Supply Chain Finance in India

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financeseva
Supply Chain Finance in India

Supply Chain Finance in India  


In India, the development of business has seen a speedy growth in recent times due to the integration of various socio-economical & financial factors.  


A business, no matter whether it is small or large, is always in need of working capital which is the financing requirement to fund everyday expenses other than fixed assets. Businesses take Small Medium Enterprises or MSME loans from several banks and financial institutions to fund the need for working capital.  


Supply chain finance is short-term finance for working capital that can be used by suppliers or dealers having a positive relationship with enterprise to enhance the need of working capital.  


Benefits of Supply Chain Finance  

Supplier  

Manufacturer  

Dealer  

Increase cash flow 

Reduce investment in working capital  

Provide working capital for the purchase of inventory 

Offer post-shipment financing 

Minimize the cost of goods sold  

Low cost of funding rather than other products of working capital 

Decrease the cost of capital   

Reduce total cost of borrowing  

Automatically decreases the administration cost 

Advance payment reduces financial dependence on buyers 

Automation reduces  

Improve financial discipline  


Documents required for Supply Chain Finance in India  

  • Identity and address proof of owner as well as business. 
  • Latest bank statements 
  • Details of sales ledger for vendor 
  • Invoice for the previous three months 
  • Recent GST or VAT documents 


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