To meet funding requirement of supplier/vendor against goods/materials supplied to the sponsor Corporate
Objective
Providing Finance to Supplier/Vendors of sponsor corporates.
Target client
Select Suppliers and Vendors identified by the sponsor Corporate — Facility would be extended based on referral letter/recommendation of the Corporate.
Sponsor Corporates
- Existing corporate borrowers of our Bank availing credit limits with us. The Credit Rating of our existing borrowers should not be below Investment Grade
- Other Corporates, who are not our existing borrowers but with minimum external credit rating of A & above. The sponsor corporates should be manufacturers/service providers of branded goods/products.
Nature of Facility
Drawee Bill/Invoice Finance — tenor of bill as per the arrangement between the supplier/vendor and the sponsor corporate; however not to exceed 90 days from the date of invoice. If the due date falls on Sunday or holiday the bill becomes due for payment the following working day and No penal interest to be charged.
Security
- To be extended as Clean facility to the supplier.
- Copy of invoice duly accepted by the sponsor corporate.
- Referral letter from the sponsor corporate
- Personal guarantee of supplier /borrower company’s promoters/partners/directors, as the case may be.
- MOU/Comfort Letter with Sponsor Corporate. It should specifically mention the mode of Repayment of Principal/Interest:
- Interest To be collected upfront/back ended, to be paid by vendor
- Principal is to be repaid by Sponsor Corporate.
Since the payment obligation of the invoice discounted always lies with the sponsor corporate, as it has been accepted by them and they are the recipient of goods supplied, principal is to be repaid by sponsor corporate.
*Terms & Conditions apply. For further details, Please contact your Nearest Branch
Maximum 90 Days
Extent of Finance
Vendor /Supplier wise limit to be fixed in consultation with Corporate and the maximum limit is to be capped at 20% of the estimated annual supplies to the corporate.(Total supplies as per last financial year) Aggregate Exposure on the sponsor corporate is to be capped at maximum 50% of previous year’s total raw material purchased as per corporate’s financial statement.
Margin
Nil
MOU with sponsor corporate
MOU with Sponsor corporate to be executed
*Terms & Conditions apply. For further details, Please contact your Nearest Branch
RBLR+BSS (0.00%)+CRP(0.20%): i.e. effectively 7.05% at present
Principal Repayment
Principal should be repaid by the sponsor corporate on due date. Cash Credit/Current Account of the corporate, as the case may be debited on the due date and credit should be made to the account of vendor. Opening of current account of sponsor corporate should be explored.
Interest Repayment
The Interest to be paid by the vendor, could be recovered upfront (i.e. at the time of disbursement) or at the back end (on the due date of Bills), as agreed by the sponsor corporate.
- In case the Interest payment is upfront, the notional interest may be deducted from the actual Bill amount discounted and the proceeds after recovering the interest may be credited to the Vendors account.
- In case the Interest Payment is back ended, the same will be borne by the vendor and to be paid on the due date. However insistence should be made by the branches for collecting the interest upfront at the first place
*Terms & Conditions apply. For further details, Please contact your Nearest Branch
*Terms & Conditions apply. For further details, Please contact your Nearest Branch
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STAR CHANNEL CREDIT - DEALER
Providing Finance to Supplier/Vendors of sponsor corporates.
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