Why Businesses in India Need Vendor Finance?

Repayment can be made by the Anchor Corporate to the Lender at any time before the end of the agreed credit period. This period typically ranges from 30 to up to 180 days per invoice, depending on the terms set with the Anchor. Interest is applied only for the number of days the credit is actually utilised.

Repayment is made through the auto-debit facility via NACH (National Automated Clearing House). The agreed repayment amount is automatically debited from the borrower’s registered bank account on the scheduled due date, ensuring timely and hassle-free repayments. Also, without NACH setup, the client can directly pay to the financer via RTGS/NEFT.

In most cases, no additional collateral is required, as our Lending Partners extend funding based on the vendor’s relationship with the Anchor Corporate and the expected cash flows within the payment cycle. However, in certain situations, lenders may request collateral depending on their risk assessment.

It is a working capital solution designed to help suppliers manage cash flow disruptions caused by extended buyer payment cycles and tight procurement deadlines. It bridges liquidity gaps, enabling vendors to sustain operations, fulfil orders on time, and manage logistics even when payments are delayed. Moreover, better ROI from financers enables the buyer to negotiate a cash discount from vendors.

Vendors with a solid performance history and confirmed relationships with anchor corporates qualify for Mynd Fintech’s unsecured line of credit. After a risk-based assessment and onboarding, selected vendors gain access to confirmed invoice discounting and financing, without collateral.

1. A credit limit is established based on the risk evaluation of the anchor corporate, while small assessments of vendors are also conducted by the financer.
2. Once the above is done, the limit is set by the financer and by Mynd Fintech on its portal, after completion of documentation from both the buyer and vendor sides.
3. Invoices are uploaded and confirmed either through ERP integration or via Mynd Fintech’s portal.
4. Approved invoices are funded directly into the vendor’s bank account on the same day if uploaded before the cut-off time, and the next day if uploaded after the cut-off time.
5. Upon the anchor corporate’s payment (or via NACH on the due date), the vendor’s limit resets for further use.

No. Mynd Fintech helps arrange unsecured lines of credit from designated financiers for qualifying vendors. The facility is backed by confirmed invoices from reputable anchor corporates, eliminating the need for traditional collateral.

Generally, vendors working with well-performing anchor corporates qualify. Eligible candidates include MSMEs and suppliers with a history of reliable delivery and payment confirmation by the corporate partner. The solution is particularly suitable for businesses operating in sectors with long supply chain cycles.

Once the invoice is confirmed and validated via ERP integration or Mynd Fintech’s Portal, funds are disbursed the same day if the transaction is uploaded before cut-off, or the next day if uploaded after cut-off. The payment goes directly into the vendor’s designated bank account, enabling immediate use of the working capital.

• Vendors receive timely working capital without collateral.
• Lenders gain access to scalable, low-risk digital lending opportunities, including new corporates.
• Anchors build smoother supply chains, strengthen vendor loyalty, and help negotiate cash discounts. All parties benefit from a tech-enabled, standardised, and efficient financing model.

Repayment can be made before the due date by the anchor corporate, and if not, processed automatically via NACH (National Automated Clearing House) on the maturity date. After each repayment, the vendor’s credit limit is refreshed for future use.