Our Solutions
Channel Financing
Managing cash flow effectively is essential for growth and maintaining competitiveness. Many businesses need help bridging the payment gap between suppliers and buyers, which can strain relationships and limit operational capabilities. With over 20 years of experience in corporate finance, I recognise the strategic importance of Channel Financing, a solution designed to optimise working capital, maintain liquidity, and reduce financial risks.
Our Channel Financing Solutions offer flexibility, speed, and accessibility, empowering businesses to streamline their supply chains and enhance financial efficiency. Whether you are a supplier looking for faster payments or a buyer seeking extended credit terms, our tailored financing options are designed to meet your unique needs.
What is Channel Financing?
Channel Financing is a short-term financing solution that improves cash flow by bridging the payment gap between suppliers and buyers. It enables suppliers to receive early invoice payments while buyers benefit from extended credit terms. This solution is precious in industries with complex supply chains, such as manufacturing, retail, and technology, where timely cash flow is crucial for maintaining operations and competitiveness.
Our approach to Channel Financing leverages advanced digital tools and financial expertise, offering a streamlined, efficient, and transparent process that aligns with your business’s specific requirements.
Features and Benefits of Channel Financing
1. Minimal Requirements
Our solutions are accessible with straightforward eligibility criteria, ensuring quick access to funds. This inclusivity allows businesses of all sizes to leverage financing to maintain and grow their operations.
2. Zero Collateral Requirement
Secure necessary funds without pledging assets, reducing financial strain and enhancing flexibility.
3. Simplified Repayment Options
Flexible terms aligned with your cash flow cycles make repayments manageable and stress-free.
4. Advanced Online Tools
Our digital platform provides real-time access to financing status, invoice tracking, and detailed reporting, ensuring greater visibility and control over your working capital.
5. Competitive Interest Rates and Transparent Charges
Benefit from highly competitive rates and a transparent fee structure with no hidden costs, allowing for informed financial decisions.
Key Advantages of Channel Financing
Collateral-Free Finance
Access funds without risking valuable assets, offering greater financial freedom.
Quick Payment Process
Enhance liquidity by accelerating supplier payments and fostering solid, trust-based relationships.
Improved Work Efficiency
Streamline financial processes, reduce administrative overhead, and focus on core business operations.
Easy Application Process
Enjoy a simplified application process, enabling fast approvals and fund disbursement.
Increased Liquidity
Convert receivables into cash quickly, supporting strategic initiatives and operational needs.
Reduced Risk of Bad Debts
Minimize credit risk by ensuring timely payments and promoting a healthy financial ecosystem.
Impact of Channel Financing on Your Supply Chain
Channel Financing significantly impacts supply chain efficiency by ensuring uninterrupted cash flow. It reduces financial constraints, allowing for smoother operations, reduced capital costs, and enhanced sales and distribution capabilities. This fosters trust and strengthens supplier relationships, providing a competitive edge in the market.
Eligibility Criteria for Channel Financing
To qualify for our Channel Financing solutions, businesses generally need to meet the following criteria:
- Age: Applicants must be of legal contracting age.
- Nationality: Must comply with relevant national laws and regulations.
- CIBIL Score: A minimum credit score is required to demonstrate financial stability.
- Work Status: Businesses should be operational with a steady revenue stream.
- Business Vintage: A proven track record of business operations over a specified period.
Documents Required for Channel Financing
To facilitate a smooth financing process, the following documents are typically required:
- Know Your Customer (KYC) Documents: Identity and address proofs, such as a PAN card, Aadhar card, or passport.
- Financial Statements: Audited financials for the last 2-3 years.
- Business Proof: Registration documents, GST certificates, etc.
- Bank Statements: Recent bank statements to establish cash flow stability.
Interest Rates and Charges
Our Channel Financing solutions are cost-effective, with competitive interest rates customised to each business’s needs. Rates are determined by credit score, business size, and industry standards. We summarise all applicable charges, ensuring transparency and no hidden fees.
- Pre-Application Preparation: Gather necessary documents, assess financing needs, and ensure you meet the eligibility criteria.
- Submit Your Application: Complete our streamlined online application form with all required information.
- Evaluation and Approval: Our team conducts a thorough assessment, and decisions are typically made within a few days.
- Fund Disbursement: Upon approval, funds are disbursed directly to your suppliers, ensuring fast payment.
- Manage Your Financing: Use our digital tools to monitor payments, manage invoices, and access detailed financial reports.
Use Cases of Channel Financing
Our Channel Financing solutions have proven successful across various sectors:
- Mobile Technology Sector: Ensuring suppliers receive timely payments to maintain inventory levels and production schedules.
- Retail and Manufacturing: Enhancing stock availability and optimising production flow by providing immediate cash flow relief.
- Automotive Industry: Supporting suppliers in maintaining a consistent supply chain by providing the working capital needed to meet production demands.
Advantages of Channel Financing for Suppliers
- Reduced Recovery Risk: Assured payments from buyers mitigate financial risks.
- Faster Payments: Suppliers receive payments quickly, maintaining smooth operations.
- Access to Working Capital: Simplifies access to funds, improving cash flow management.
- Lower Cost of Capital: Offers favourable terms compared to traditional loans, reducing financing costs.
- Sustained Business Growth: Suppliers can confidently invest in growth opportunities with improved cash flow.
Other Working Capital Solutions
In addition to Channel Financing, we offer various working capital solutions:
- Invoice Discounting: Convert unpaid invoices into immediate cash to improve liquidity.
- Purchase Order Funding: Finance large purchase orders without straining cash reserves.
- Working Capital Demand Loan: Flexible, short-term loans for managing day-to-day expenses.
- Buy Now, Pay Later (BNPL): Deferred payment options to manage cash flow.
- Equipment Finance: Funding for acquiring essential business equipment.
Explore the Advantages of Channel Financing
- Improved Liquidity: Maintains a strong cash position to support growth.
- Reduced Financial Exposure: Low risk associated with unpaid invoices.
- Enhanced Sales and Distribution: Ensures continuous flow of goods and services.
- Strengthened Business Relationships: Builds trust and loyalty between suppliers and buyers.
The practise of utilizing the unpaid invoices of a company for generating runtime capital for the company and hence, solving their cashflow problems is known as invoice discounting. Generally, banks, NBFC’s individual investors are involved in this process.
CashnTech is a technology driven platform that helps the businesses to use their unpaid invoices and raise capital for their company. It is also making the process collateral free. At the same time investors can invest for high returns in less time at a very low risk.
- Banks
- NBFCs
- Financial Institutions
- Retail as well as
- Institutional Investors
- Bring a permanent solution to your cashflow problems.
- Empower your business by raising capital whenever & wherever.
- Let the Businesses and Investors work hand in hand.
No
Any investment is associated with risk. The way in which we manage and mitigate your risk factors is what that matters the most.
- Strong verification: Anyone associated with us undergoes through a strong verification process. All the financial and legal aspects are taken into consideration whether it may be an investor or any business.
- Analysis: There is a strong credit analysis that is performed. It involves the complete go through each and every financials of the organization.
- CashnTech is a tech platform. It does not assume any risk on behalf of anyone.
CashnTech has facilitated opening of an escrow account for each individual member. Fund transfers happens through these escrow accounts. Money involved will not be transferred to CashnTech’s account in any given scenario. Hence, it’s completely transparent and a safe process.