Supply Chain Financing Solutions

Enables you to convert your receivables into cash which in turn improves liquidity resulting into a healthy and continuous cash flow for your business.

Vendor Finance
Channel Finance for Manufacturers
Channel Finance for Traders

165+

YEARS OF EXCELLENCE

3.8+ Cr.

ACTIVE CUSTOMER BASE

1300+

BRANCHES ACROSS INDIA

₹3.9 Lakh Cr.

AUM AS OF JUNE, 2023

Supply Chain Financing Solutions - Invoice Discounting

This solution provides finance by discounting the sales bills of your vendors or by discounting your purchase bills. This financing facility is also available for your channel partners. Besides regular bill discounting, we also service bill discounting backed by Letter of Credit (LCBD).
Some of the benefits of this financing solution are:

Instant conversion of receivables into cash
Helps to build strong relationships with vendors and channel partners
Assures availability of working capital finance to channel partners and vendors at competitive costs of credit
Facilitates increased sales through higher purchasing power for channel partners
Faster payments leading to cash discounts from companies
Faster Turnaround Time (TAT) and simple procedures

FAQs

Supply chain finance (SCF) refers to a range of technology-driven solutions designed to reduce financing costs and enhance business efficiency for buyers and sellers engaged in a sales transaction. SCF methodologies achieve this by automating transactions and monitoring invoice approval and settlement processes from initiation to completion.

Supply chain finance involves a collaboration between a buyer and a financial institution. Under this arrangement, the financial institution pays the suppliers directly on behalf of the buyer. While suppliers may need to enrol in the program, it's the responsibility of the buying company to initiate and establish this arrangement.

The primary advantage of supply chain finance is that the buyer incurs no fee to extend its payment terms, and the supplier only pays a minimal discount if they opt for early payment of a supply chain loan.

Supplier finance applies to companies across diverse sectors, including automotive, electronics, manufacturing, retail, and others. It benefits organisations on both sides of the supply chain, allowing buying entities to extend their payment terms while suppliers can receive earlier payments.

Under Supply Chain Finance, various supply chain financing solutions are offered to facilitate smooth transactions between buyers and sellers. Some common types include:

Invoice Discounting
Dynamic Discounting
Supply Chain Financing Platforms
Receivables Finance
Payables Financing
Inventory Financing
Purchase Order Financing
Channel Financing

Quick Services

Revision of Reference Rates for determining Interest Rates on loans given

Long Term Reference Rate

ABCL has increased its Long-Term Reference Rate (LTRR) by 20 bps to 20.45% p.a. with effect from March 1, 2024. The interest rate on the floating rate loans of tenor greater than 12 months that are linked to the LTRR will be revised upwards by 20 bps. The spread / margin on the said loans will remain unchanged.

Short Term Reference Rate

ABCL has increased its Short-Term Reference Rate (STRR) by 20 bps to 19.45% p.a. with effect from March 1, 2024. The interest rate on the floating rate loans of tenor up to 12 months that are linked to the STRR will be revised upwards by 20 bps. The spread / margin on the said loans will remain unchanged.