Definition

A short term finance facility that provides cash flow under a continuous arrangement between the financier and the seller who sells materials on credit. The financier purchases from the seller the invoices and makes cash flow finance available to the seller at a discount.

Objective

The objective of this program is to facilitate sales to Clients' Original Equipment Manufacturers (OEMs) on cash basis.

Value Proposition

• Competitive Cost of Funds
• No Collateral / Security attached
• Increased buying Power for OEM due to added liquidity.
• Improved working capital & cash flows for Seller.

Role of finance junction

• Integrate with ERP System of Client for Flow of Invoices
• Transmit the Accepted amount of Valid Invoices falling due to Partner Banks
• Credit to Client for Valid Invoices.
• Alerts to Customer for making re-payment to Bank by Due - Dates.
• Collection of Repayments from OEM by Due Dates.

Achievements

• Discounted invoices of more than Rs 1000 crs till date
• 24x7x365 basis support without any manual intervention
• Holidays are no more restrictions to conduct business