Supply chain finance (SCF) is a set of technology-based solutions that aim to lower financing costs and improve business efficiency for buyers and sellers linked in a sales transaction. It works by automating transactions and tracking invoice approval and settlement processes, from initiation to completion.

In a supply chain finance arrangement, the buyer and the seller enter into an agreement with each other and with a supply chain financier. The transactions between the buyer and the seller take place and the seller raises invoices on the buyer. The buyer then has to upload the invoices into a cloud facility of the supply chain financier.

Supply chain finance can offer several benefits: improved cash flow, increased efficiency and transparency, reduced costs, financial flexibility for buyers, more control for suppliers, stronger buyer/supplier relationships, improved working capital management, reduced supplier risk, increased supplier loyalty, enhanced supply chain visibility, improved financial metrics.

You can apply for a supply chain finance loan with HLF by getting in touch with a HLF representative.

You need to provide business financial statements, tax returns, and other relevant documentation.

HLF provides up to Rs. 100 crore in cumulative funding for distributors of an OEM/Large Distributor and other such businesses.

The typical turnaround time for loan approval is within 72 hours.

The interest rates would depend on HLF’s specific rates.

Yes, you can make extra payments or pay off your loan early. Pre-payment charges will apply as per terms of credit.

Whether there is a penalty for early repayment would depend on the terms of your loan with HLF.

If you miss a payment on your loan, there may be late fees or other penalties, depending on the terms of your loan with HLF.

The eligibility criteria would depend on HLF’s specific requirements. Typically, this might include factors such as your business’s financial health, credit history, and relationship with the manufacturer.

Any restrictions on how you can use the funds from a supply chain finance loan would depend on the terms of your loan with HLF.

Yes, your business and financial information should be secure when applying for a loan. HLF should have measures in place to protect your information.

Any additional fees associated with supply chain finance loans would depend on the terms of your loan with HLF.

Whether HLF offers options for loan deferment or restructuring in case of financial hardship would depend on applicable HLF policies.

After your loan is approved, you will receive further instructions from HLF regarding the next steps.

Once your loan is approved, HLF offers on-demand TOD with same-day disbursement.

No collateral is required for supply chain finance loans at HLF.

The loan approval process involves submitting an application along with required documents, after which your application will be reviewed by HLF. If approved, funds will be disbursed according to their procedures.

HLF does not specify any particular sectors or industries for supply chain finance services. We provide services to a wide range of industries.

In a typical supply chain finance scenario, the anchor (OEM or distribution network owner) would not have direct visibility over the financial arrangements between the distributor and the finance provider (HLF). The anchor’s role is primarily to validate invoices or receivables that are being financed. Specific terms can be discussed on a per case basis, depending on various factors such as quantum of credit, industry, etc.

In the case of HLF, the anchor typically does not provide any guarantee or security for the supply chain finance provided to its distributors.

If a borrower (distributor) defaults, it generally does not have a direct financial impact on the anchor. However, it could disrupt the supply chain if the distributor is unable to continue operations due to financial difficulties. The risk of default is primarily borne by the finance provider (HLF). This is subject to HLF policies, terms of supply chain loan other terms discussed between the borrower, lender (HLF) and the anchor.