Distributor / Dealer Finance
Distributor / Dealer Finance provides short- term financing facility to distributors in order to bridge the liquidity gap between payment to suppliers and proceeds received from the sale of goods.
Process Flow
Features
Exclusivity
Exclusive credit limit for purchase from corporate supplier
Financing Amount
Maximum financing amounts up to 70% of invoice amount
Credit Facility Tenor
Revolving line of credit for 1 year
Financing Tenor
Maximum financing tenor up to 90 days
Interest
Accrued interest to be paid on financing maturity
Eligibility Criteria
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MINIUM 2 YEARS Of commercial relationship with corporate supplier |
PROVEN PAYMENT record recommended by corporate supplier |
NO NPL reported at any bank in the past |
Pricing & Fees
| Service Fee | 1% credit facility fee on approved credit limit |
| Interest Rate | 10% – 14.5% |
| Late Fee | 3% late fee will be charged on overdue outstanding |
Required Documents
| For Distributor | |
| 1. | Certificate of Incorporation / Business License |
| 2. | Company Extract from DICA |
| 3. | NRC Copies and Household List of Authorized Signatories |
| 4. | Last 3 Years Audited Financial Report and Income Tax Receipts |
| 5. | Business Profile of Distributor |
| 6. | Suppliers List and Top 5 Customer List of Distributor |
| 7. | Last Year Payment Record to Corporate Supplier |
| 8. | Financing Request Letter and Meeting Minutes signed by Authorized Signatories |
| For Corporate Supplier: | |
| 1. | To sign off Terms and Conditions for Anchor (Distributor/ Dealer Finance) by at least two authorized signatories |
Benefits
Benefits to Distributors
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Gain access to a steady source of funding that supports a full working capital cycle |
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Allow extension of days payable outstanding |
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Improve operating efficiency and business growth |
Benefits to Corporate Suppliers
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Increase sales growth by enhancing distributors’ procurement capability |
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Effective management of receivables while reducing distractors’ payment risk |
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Strengthen channel relationships and loyalty through supporting supply chain |