header main logo header main logo

Receivables Financing Solutions

 

Off balance sheet solutions offered to Corporates by monetising their receivables due from buyers/dealers.

Ideal working captial solution to enhance liquidity 

 

Factoring (domestic or cross-border) is an ideal alternate financing solution to traditional Working Capital Loans, besides being an optimal buyer credit risk mitigation tool for the seller.

 

Creating value for Corporates

  • Financing up to 100% of eligible invoices

  • Minimal documentation

  • Extensive corporate coverage 

  • End to end digital in house architecture

 

How does Factoring work? 

The Corporate (supplier) assigns its receivables due from the buyer/importer to the Bank under a Factoring Agreement. The Bank discounts these receivables by making an upfront payment to the supplier. The buyer makes the payment to the Bank on the due date.

 

  • Sale & Delivery of goods – Supplier enters into a sales contract with the buyer and ships the  goods,

  • Documentation – Factoring Agreement executed between the seller and the bank.

  • Discounting – Supplier assigns receivables to the bank under Factoring Agreement & submits transaction details through online or offline mode. 

  • Repayment – The bank receives payment from the buyer on the due date.

 

Digital Capabilities 

Features:

 

  • Sanction & Disbursement

  • Payment update in ERP & Auto Reconciliation

  • Real-time visibility of invoices to channel partners

  • Customised MIS dashboard

 

 

 

 

Dealer/Distributor network is an essential element of the Corporate supply chain ecosystem. Dealer financing provides an instant working capital facility to Dealers/ Distributors for buying goods from the Corporate.

 

Solutions meeting Corporate’s business objective:

 

  • Additional liquidity to dealers for increased off-take

  • Onboarding through digital channels in less than 30 minutes*

  • Minimum Documentation

  • Push and Pull modes of payment to Corporates

 

How does Dealer Financing work?

The Corporate enters a Dealer Finance Arrangement with the Bank and recommends its dealers to enrol digitally or manually. Limit is given to Dealers basis business volume with the Corporate and credit assessment.

 

  • Dealer Onboarding - Post credit checks, eligible Dealer receives an e-mail with sanction amount.

  • Limit Setup Credit – Credit Arrangement letter executed with Dealer, along with Current Account opening. The limit setup is automated on the  platform.

  • Transaction Processing - Payments processed to Corporate on dealer limit.

  • Repayment - On due date, Bank receives payment from dealer

 

Digital Capabilities 

Features:

 

  • Sanction & Disbursement

  • Payment update in ERP & Auto Reconciliation

  • Real-time visibility of invoices to channel partners

  • Customised MIS dashboard

 

 

 

 

FAQs

What are Receivables Solutions? 

Receivables Solutions are off-balance sheet financing options that help corporations unlock working capital by monetising receivables due from buyers or dealers.

  1. Factoring (Domestic & Cross-border): 
    Offers upfront funds against receivables from buyers, domestic or international. Helps improve cash flow and reduce buyer credit risk. 
  2. Dealer Financing: 
    Provides working capital to dealers/distributors for purchasing goods from the corporation. Strengthens supply chain efficiency and boosts product off-take. 

What is the benefit of using Receivables Solutions like Factoring or Dealer Financing?

Receivables Solutions helps Corporates improve cash flow by monetising their outstanding invoices or channel sales. Factoring offers upfront funds against receivables, while Dealer Financing provides working capital limits to dealers for purchasing goods. 

Who is eligible to apply for Factoring or Dealer Financing? 

Corporations with a valid business presence and active relationships with buyers or dealers are eligible. For Dealer Financing, recommended dealers must meet the bank’s credit and volume criteria. 

How much funding can be availed through Factoring? 

Corporations can receive up to 100% financing on eligible invoices under Factoring. The funds are disbursed upfront, helping reduce dependency on traditional working capital loans. 

How does the Dealer Financing process work? 

The Corporate enters into an arrangement with the Bank and recommends its dealers. Post credit assessment, limits are sanctioned to dealers who can then purchase goods and repay the Bank as per agreed terms. 

Is the process completely digital?

Yes. ICICI Bank offers end-to-end digital onboarding, sanction, disbursement, invoice visibility, and auto-reconciliation with ERP systems for both Factoring and Dealer Financing.

Disclaimer

PROCEED