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 applicant’s 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 FINTECHPRIVATE LIMITED (“Mynd Fintech”) Address: 2nd Floor, 288-A, Udyog Vihar IV, Gurugram, Haryana - 122001 Contact no. : +91-124-4646000 Email: hello@myndfin.com