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Need for Dealer Finance
Dealer finance is essential to tackle challenges such as working capital shortages, cash flow mismatches, and limited access to credit. Dealers often face liquidity issues due to delayed customer payments, seasonal demand surges, and misaligned supplier payment cycles, making it difficult to sustain operations or invest in inventory.
Traditional credit options often fall short, leaving dealers with high operational costs and pressure from suppliers for upfront payments. Dealer finance provides immediate liquidity, enabling better inventory management, timely supplier payments, and operational efficiency. By bridging cash flow gaps and offering flexible repayment terms, dealer finance empowers dealers to optimize their supply chain finance and ensure business growth.
Drive Growth with Mynd Fintech’s Smart Dealer Financing
At Mynd Fintech, our Dealer Finance solutions provide tailored credit options to empower dealers with the working capital they need. We eliminate financial bottlenecks, ensuring smooth transactions, optimized inventory, and efficient cash flow. Our solutions enable dealers to focus on sales and business growth, helping you strengthen your distribution network.
Features:
Unsecured Line of Credit Facility offered to Dealers having good track record with well performing Corporates- Loan agreement signed between the Dealer and Financier
- Enables qualifying Dealers to finance payments to be made to Anchor Corporates against confirmed invoices
- Technology integration with Corporates’ ERP and use of Mynd Portal for seamless flow of Invoice information across the Corporate, Dealer, Mynd and the Lender
How it Works
01
One Time Credit Limit Set-up
- Limit amount and period finalized basis risk assessment of Anchor Corporate and Dealers
- Digital on-boarding of Anchor and Dealers
02
Digital flow of Anchor Authenticated Invoices
- Integration with Anchor’s ERP for online invoice flow
- System for uploading digitally signed invoices, if ERP integration is unavailable
03
Online Disbursement
- Authenticated POs are funded within 24 hours
- Disbursement done in Anchor’s designated Bank account
- Limits revised post each disbursementc
04
Online Repayment before due date
- Dealer’s NACH is presented on the due date
- Flexibility for Dealer to pay Lender anytime prior to the due date
- Limits get replenished after every payment
Benefits of Dealer Finance
- Access to new and profitable lending opportunities with little or no investment
- Funding of a confirmed end-purpose
- Digital and standardized underwriting process
- Highly automated and hence scalable model
- Access to immediate working capital required for purchase of goods
- Significantly lower rates of interest than prevailing market rates
- Off-balance sheet funding
- Increase in sales and market share
- Sharper focus of sales team on sales instead of collections
Frequently Asked Questions
We offer Dealer Finance to all dealers having a proven track with a well performing Anchor corporate and registered as Proprietorship, Partnership, Private Limited, Limited Liability Partnership and Public Limited Companies
The financing disbursement is done by the Lender to the designated Bank account of the Anchor Corporate within 24 hours, as per the process agreed.
Repayment terms are flexible, with the dealer having the option to repay before the due date. The repayment is made through the dealer’s NACH (National Automated Clearing House), and the credit limit is replenished after every payment made on time.
Using auto debit facility via NACH.
There is usually no additional collateral required, as our Lending Partners fund a business on the basis of their relationship with the Anchor corporate and the cash flows due within that cycle. However, in some case lenders may request for collateral based on their assessment of the risks involved
Dealer financing is a financial solution designed to help dealerships bridge cash flow gaps by offering working capital to manage inventory, supplier payments, and other operational costs. The process involves digital integration between the dealer, anchor corporates, and lenders for seamless transactions. Financing is provided against confirmed invoices, and repayments are made through flexible terms.
Mynd Fintech offers tailored credit solutions to dealers, ensuring smooth cash flow, optimized inventory management, and efficient transactions. With an unsecured line of credit and digital integration with ERP systems, dealers can access fast funding for payments to anchor corporates, without the need for collateral.
Once the dealer’s credit limit is set, financing is disbursed digitally. Authenticated Purchase Orders (POs) are funded within 24 hours, directly into the dealer’s designated bank account.
Dealer financing can be beneficial for businesses involved in various industries such as automotive, retail, consumer electronics, and more. It’s especially helpful for dealers facing cash flow mismatches or working capital shortages.
Dealer financing is essential for managing working capital shortages, cash flow issues, and inventory management. It helps dealers overcome liquidity problems caused by delayed payments, seasonal fluctuations, and the need for upfront supplier payments. This financial tool ensures business continuity and supports growth.
To apply for dealer finance, dealers must go through a digital onboarding process, where their creditworthiness and risk assessment are evaluated. Once approved, they are assigned a credit limit and can start financing confirmed invoices.
Dealer finance is more flexible than traditional loans, offering quicker disbursements, no collateral requirements, and automated processes. It is designed specifically for dealers facing seasonal demand surges or liquidity issues, while traditional loans often have longer approval timelines and more rigid terms.