The Distributor Funding Program is a built-to-suit solution for enterprise clients and offers a scalable, efficient and flexible model to monetize distributor receivables, while dealers and distributors may opt to extend credit periods
01 Lengthy receivable cycles
02 Limited distributor network coverage in traditional bank-led programs
03 Minimal distributor engagement limits program adoption
04 Difficult to scale ad-hoc cash discount arrangements with distributors
05 Maintaining distributor loyalty with non-exclusive distributors
01 Limited access to funding through bank-led channel finance programs
02 Lengthy paperwork and on-boarding due to limited digital intervention
The distributor funding platform is integrated with the ERP system of the large enterprise. It acts as a digital marketplace for distributors
The anchor enterprise uploads all approved distributor invoices onto the marketplace for distributors to request credit extension for their invoices
Distributors activate their accounts on the SME platform to view their invoices and choose the number of days of credit extension and the commensurate premium offer
SME’s enterprise client will get to review the proposals by the distributors, and select the date on which the enterprise wishes to be funded
Both monetisation of receivables and distributor credit extension are facilitated by SME’s partner network of banks, NBFCs and other Financial Institutions
Financial institution funds the enterprise on its requested date. The financial institution is repaid by the distributor on the revised due date. SME’s technology maps and tracks both process and payment flows
Align receivables cycles with payables timeframes
Potential to structure solution as an off-balance form of funding
Maximised coverage of dealer and distributor network
Credit enhancement options available for distribution network improve sales performance
Improves quality and economics of relationships with distribution networks