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How to Apply for a Vendor Financing Scheme

Having substantial working capital ensures that you can run your business smoothly, as it gives you the resources to tackle vendor expenses that you incur during the production cycle or at other stages of your supply chain. To understand better, assume that you own a business manufacturing different types of rain wear such as umbrellas, raincoats, sandals and so on. Vendor A is charging you Rs.20 lakh for the raw materials, but at present you can afford to pay only Rs.7 lakh. In such a situation you have two options. Either lower production by purchasing less raw material or avail a vendor financing scheme and repay the loan when you make profits in the monsoon season, since this is when the demand for your products peaks.

To ensure sustained growth, option two is the better of the lot. In fact, an impressive vendor finance option is the vendor finance. This vendor financing scheme builds upon the classical vendor finance definition. Here you get the money you require not from a vendor, but from Bajaj Finserv. The advantage is that you get ample finances so you can cover the entire payment to vendors and not just a percentage of the total. What’s more, this is available to you from a trusted lender, without pledging any collateral.

With Bajaj Finserv Vendor Finance, you get up to Rs.30 lakh quickly. The Flexi Loan facility allows you to borrow from your credit limit as you go and pay interest only on the amount utilised. The interest rate is affordable, and you can choose to repay over a tenor ranging from 12 to 60 months.

If you’re convinced that this loan is right for you, you’ll be happy to know that it’s easy to qualify and apply for as well. Here’s a brief guide on how to go about the process.

Make sure you meet the eligibility criteria

There are three main criteria when it comes to Bajaj Finserv Vendor Finance. Your age should be between 25 and 55 years, you must have business vintage of at least 3 years. as well as IT returns filed for at least the past year.

Additionally, you must be either a self-employed professional, self-employed non-professional or an entity such as a limited liability partnership, private limited or closely-held limited company.

Keep the necessary documentation handy

A business loan eligibility is required to prove your eligibility and varies from lender to lender. To help you access the loan with ease, Bajaj Finserv keeps it to a minimum. You have to submit only the following:

  • Passport size photograph
  • KYC documents such as driving license, Aadhaar card, passport or PAN
  • Business proof in the form of certificate of business existence
  • Relevant financial documents
  • Bank account statements

Complete the process with quick online application

You can sign-up by applying online, which means that you can do so in a snap. Fill in details like your city, contact information, PAN, annual turnover, business vintage, e-mail ID and submit the form. A Bajaj Finserv representative will get in touch with you with your loan offer.

Now that you know about the vendor financing scheme, remove every blockade in your business’ supply chain cycle by getting the right finance at the right time from Bajaj Finserv. Hasten the process of getting vital finances by checking your pre-approved loan offer and unlocking tailor-made deals!
Author Bio:
Uday is a passionate blogger. He has expertise in writing finance articles. He have been serving society as a financial adviser. He loves keeping himself up-to-date with the news and happenings around. He is always open to learning and shares his experiences on his Greetings of the Day.

Reena Rawat
Author: Reena Rawat