Definition

This is a short term working capital facility for the Key Account Customers / Dealers of Tata Steel Distributors already registered with Channel Finance

• Finance Amount up to Rs. 2 Crore
• Credit Period up to 45 Days (need based)
• Interest Rate Band-attractive rate based on STLR (Current STLR - 14.50% p.a.)
• Nil or negligible collateral security
• Quick disbursal
• Hassle free one time documentation and processing

• The key objective of the program is to smoothen cash flow of Tata Steelium distributors by financing their Key Customers.
• Providing finance at competitive cost to the Key Customers

• Distributor funds locked in Customer Invoices can be unlocked
• Increased liquidity due to cash sales to KAC & Dealers
• Increased buying power with Tata Steel due to added liquidity

• Easy availability of finance at a competitive cost with minimal or no security
• Liquidity situation remains solid resulting in shift to large volume based business thus providing a trigger to the supply chain
• Mobilizing funds to better/ alternative areas for further improvement of business

• Only for Tata Steel material buyers, through authorized distributors
• Customer should have had a business relationship with the Distributor for a minimum of 3 years
• Customer should have a good payment record with the Distributor (no overdues > 15 days)

• To act as a single point contact for Tata Steelium Distributors, Customers and Financing Partner (Tata Capital Ltd.)
• To build an internet-based application, which will enable : Transactions on 24 x 7 basis
• Access to enhanced MIS
• To ensure speedy & hassle-free implementation with quick documentation & verification
• To liaison with financing partner ( Tata Capital Ltd. ) to ensure competitive lending rate based on risk profile of customer & risk appetite of the financing partner (Banks / NBFC's)

• Disbursed Rs 500 Lacs in the last Five Months
• Five Key Account Customers for Two Channel Finance Distributors ( Tata Steelium ) already on Board
• Interest Rate reduced by 100 basis points in the very first quarter of launch