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    VENDOR FINANCE

    You have supplied goods or services to the Anchor Corporate as per agreed quantity, quality standards and timelines. The Anchor Corporate will, however, pay you only after a certain credit period and you cannot wait to get funds to pay for the raw material, services you purchased or for the labour you mobilized. We help you raise locked-in receivables early basis invoices confirmed by the respective customers and improve your cash cycle.

    Understanding Mynd Fintech Vendor Finance

    Mynd Fintech’s Vendor Finance solution allows businesses to access short-term funding by selling their accounts receivable to us. This allows you to free up working capital and improve your cash flow. Our flexible financing options are tailored to meet the unique needs of your business, so you can focus on growing your business instead of worrying about cash flow.

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    Features:

    • Unsecured Line of Credit Facility offered to Vendors having good track record with well performing Corporates
    • Loan agreement signed between the Vendor and Financier
    • Enables qualifying Vendors to discount confirmed invoices
    • Technology integration with Corporates’ ERP OR use of Mynd Portal for seamless flow of invoice information across the Corporate, Vendor, 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 Vendors
    • Digital on-boarding of Anchor and Vendors

    02

    Digital flow of Anchor confirmed invoices

    • Integration with Anchor’s ERP for online invoice flow
    • System for uploading digitally signed POs, if ERP integration is unavailable

    03

    Online Disbursement

    • Authenticated POs are funded within 24 hours
    • Disbursement done in Vendor’s designated Bank account
    • Limits revised post each disbursement

    04

    Online Repayment before due date

    • Flexibility for Anchor to pay Lender anytime prior to due date
    • NACH presented on the due date for payment from Anchor to the Lender
    • Limits get replenished after every payment

    Benefits of Vendor Finance

    benefits
    • 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
    benefits
    • Access to early liquidity against goods and services provided to Anchor
    • Interest cost savings
    benefits
    • Off-balance sheet funding
    • Healthier Supply Chain
    • Additional lever to negotiate down procurement prices
    • Vendor Stickiness

    FAQs Frequently Asked Questions

    Invoice discounting is the practice of using company’s unpaid invoices to raise working capital & fulfil its financial needs. Financial institutions including Banks and NBFCs provide discounting services for businesses.

    We offer Vendor Finance to all Vendors 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 Vendor within 24 hours, as per the process agreed.

    Repayment is made by the Anchor Corporate to the respective Lender anytime before the end of the credit period. The credit period for each invoice ranges between 30 to 120 days, as per terms agreed with the Anchor corporate. The interest is charged only for the actual period for which credit was used.

    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