SUPPLY CHAIN FINANCE- What Every Business Owner Needs to Know About

1
SUPPLY CHAIN FINANCE

• MYND FINTECH PRIVATE LIMITED (Mynd Fintech)

2
WHAT IS SUPPLY CHAIN FINANCE?

• Supply chain financing is a kind of cash advance
  in view of the credit ratings of enterprises in
  the supply chain, like invoice finance.
• It's a technique for small businesses to benefit
  from their clients' higher credit scores while
  additionally permitting clients to broaden their
  payment terms. That might appear to be
  bewildering, yet this is the secret.
• Buyers and sellers are associated with financing
  institutions through supply chain finance (SCF).
  Subsequently, it helps businesses in lessening
  financing costs and expanding productivity. Most
  critically, it opens up working cash that has
  been fastened to the supply chain. Trade Finance
  incorporates a segment called Supply Chain
  Finance.

3
GROWING NEED FOR SUPPLY CHAIN FINANCE FOR BUSINESS

• In India and across the globe, there is an
  expanding need for supply chain finance.
  Discussing India, there are more than 6.8 Crore
  small and medium businesses in India. The
  majority of these businesses are continuously
  searching for better, helpful, and cost-effective
  methods for getting funds.
• Empowered by a few supply chain finance
  companies, these small scope specialty units
  effectively use supply chain financing. This has
  prompted a colossal development sought after for
  supply chain finance.
• Discussing India, the current market for SCF is
  around Rs. 60,000 Cr. Also this is just around
  10 of the all out market potential. In light of
  the worth of absolute invoices brought up in
  India, the market size is assessed to be Rs. 18
  lakh Cr. These figures discuss the huge potential
  SCF has in India and even internationally.

4
HOW SUPPLY CHAIN FINANCE WORKS
(WITH EXAMPLE)

• Prior to realizing how Supply Chain Finance (SCF)
  works, we should understand the players involved.
  Any common SCF includes three gatherings - the
  seller, the buyer, and the lender. The seller
  "sells" the receipt to the lender and gets his
  cash at a discount.
• Here, the credit rating of the buyers assumes a
  significant part. Lenders feel more open to
  paying the invoices raised to huge corporates and
  MNCs as there is no risk of defaulting payment.
  This provides the buyers with a great deal of
  bargaining power, and they can negotiate better
  terms with the sellers in regards to the item
  price and payment plan. The buyer is additionally
  urged to create and convey rapidly as he is
  guaranteed of the lender's prompt payment.

5
SUPPLY CHAIN FINANCE PROCESS

• The entire process of it can be separated down
  into 4 easy steps, which are explained below-
• The supplier finishes the orders, delivers the
  request, and afterward raises a invoice to the
  buyer.
• When the buyer moves toward the lender for
  discounting, the lender approves that invoice
  from the buyer.
• When the buyer approves the receipt, the lender
  promptly delivers the payment subsequent to
  making a small deduction as a fee.
• Whenever the payment gets due, the buyer pays the
  whole invoice add up to the lender.

6
WHO BENEFITS FROM SUPPLY CHAIN FINANCE?

• This method serves different needs and is
  advantageous for every party involved- the
  seller, the client, and the financial
  institutions.
• Supplier The supplier gets quick access to the
  money outstanding and can source raw material for
  the following order or pay his different
  liabilities. This makes the organization income
  more smooth and streamlined. The supplier can
  again repeat similar cycle with different buyers.
  Along these lines, the seller can pivot this
  reserve more number of times inside a financial
  year. Along these, the supplier can expand his
  business turnover.
• Buyer With SCF, the buyer benefits from a
  decrease in the cost of purchased goods. This is
  because that the lender not just lets him free
  from the strain of paying the invoice inside 30
  days yet gives him 30 extra days to pay a similar
  sum. Along these lines, the buyer gets a time of
  60 days to pay the invoice. With payment being no
  issues, the suppliers have no issues, and they
  offer normal supplies to the buyer.
• Lender Finally, the intervening agency for
  example the lender, who could be a bank or some
  NBFC additionally benefits here. In the first
  place, they can utilize the funds lying with them
  to produce some pay in interest. Likewise, by
  collaborating among buyers and sellers, the
  lenders can acquire clients and increment their
  supply chain.

7
ELIGIBILITY CRITERIA, DOCUMENTS NEEDED

• Just like any other business loan, to avail
  Supply Chain Finance, the following is the
  eligibility criteria
• The applicants age must be in between 24 years
  and 70 years at the time of maturity of the loan.
• The business must be running for at least 3
  years.
• The buyer must have a good credit rating and no
  history of defaulting on payments.
• Once you have decided to avail of supply chain
  finance you would require the following
  documents
• Identity Proof/Address proof for the owner as
  well as business
• Recent Bank statements
• Recent VAT /GST documents
• Invoices for the last three months
• Sales ledger details for vendor.

8
INTEREST RATES, FEE HOW TO APPLY
AND CONCLUSION

• The interest rate on SCF is calculated based on
  the daily usage of the credit limit. To apply for
  SCF, you may visit the myndfin.com and enter your
  contact details. The company representative will
  call you, meet you, and explain how to go about
  it.
• Supply Chain Finance is an easy and faster way to
  ensure the working capital balance.
• Mynd Fintech is the pioneer in digital supply
  chain financing for businesses of india . With
  several business financing options such as
  Vendor financing, Dealer Financing, Invoice
  Discounting and Factoring it is the ideal choice.
  
• So, if you are looking to smooth out your fund
  flow position, visit our website and leave your
  contact details. One of our representatives will
  get in touch with you soon to explain how to ride
  this wave smoothly.

9
THANKS

• MYND FINTECH PRIVATE LIMITED (Mynd Fintech)
• Address 2nd Floor, 288-A, Udyog Vihar IV,
  Gurugram,
• Haryana - 122001
• Contact no. 91-124-4646000
• Email hello_at_myndfin.com