Off-balance-sheet
Doesn’t eat into the anchor’s banking limits — payable headroom is freed without adding to the funded debt stack, where the programme qualifies as a trade payable rather than borrowing (Ind AS 109).
Ecosystem liquidity, in weeks not months.
Supply Chain Finance — Anchor-Led Programmes for Vendors & Dealers
Anchor-led SCF programmes structured with banks, NBFCs and RBI-licensed TReDS platforms — RXIL, M1xchange, Invoicemart and C2treds — freeing vendor and dealer liquidity while the anchor extends payable terms. Because pricing rides the anchor’s rating, MSME counterparties access institutional liquidity at rates often better than they would secure standalone. Part of Finnova’s ₹4,250 Cr+ mobilised across 100+ corporate-finance mandates since 2011.
Bank · NBFC · TReDS Up to 90% of invoice Live in 2–3 weeks
Finnova’s corporate-finance track record since 2011, in numbers
₹4,250 Cr+
Capital mobilised across sectorsUp to 90%
Of invoice value financed100+
Deals advised end to end3
Channels — bank, NBFC & TReDSSince 2011
CA-led, senior on every fileSupply Chain Finance is a three-party invoice-finance structure where a financier discounts approved invoices against the anchor buyer’s credit — freeing working capital for vendors and dealers while allowing the anchor to extend payable terms. The product suite spans vendor finance, dealer finance, reverse factoring and bill discounting, delivered through banks, NBFCs and RBI-licensed TReDS platforms (RXIL, M1xchange, Invoicemart and C2treds).
Finnova Advisory is an advisory firm — we structure the programme and negotiate terms; the bank, NBFC or TReDS financier sanctions and disburses.
Bank vs NBFC vs TReDS
Three channels to the same outcome — most anchors run a mix
Three channels to the same outcome, each with its own strengths. We design the programme around the anchor’s objectives rather than a single lender’s appetite.
Parameter Bank-led NBFC TReDS
Eligibility Bank-ledAnchor rated A- or better NBFCBBB-rated or unrated anchors TReDSMSME vendors; any registered anchor
Rate band Bank-led7.5%–9.5% p.a. NBFC9%–12% p.a. TReDS6.5%–9% p.a. (auction-discovered)
Tenor Bank-led30–180 days NBFC30–150 days TReDSUp to 180 days
Ticket size Bank-led₹5 Cr – ₹500 Cr+ NBFC₹1 Cr – ₹100 Cr TReDSNo floor; invoice-level
Turnaround Bank-led3–5 weeks sanction NBFC2–4 weeks sanction TReDSGo-live in 2–3 weeks
Recourse Bank-ledTypically with recourse NBFCRecourse / non-recourse TReDSNon-recourse on vendor
Indicative — varies by anchor rating, sector and lender. Most anchors run a mix: a bank line for ticket size and customised tenors, TReDS for auction-discovered rates and non-recourse MSME onboarding. New to TReDS, or onboarding for the ₹250 Cr mandate (notified 7 Nov 2024, deadline 31 Mar 2025)? See our complete TReDS guide.
Programmes we arrange
Vendor, dealer, invoice — the full SCF suite
From early payment to suppliers to inventory funding for distributors, we structure the programme — upstream, downstream or both — across the right channel mix.
01
Vendor financing
Early payment to suppliers against anchor-approved invoices — liquidity upstream, at the anchor’s rating.
02
Dealer financing
Inventory funding for distributors against the anchor’s invoice on them — liquidity downstream.
03
Reverse factoring
Buyer-initiated supplier finance leveraging the anchor’s credit rating — the classic SCF structure.
04
Invoice discounting
Seller-led discounting of approved receivables for immediate cash against the anchor’s acceptance.
05
Channel finance
End-to-end programme covering both upstream vendors and downstream dealers in a single structure.
06
Receivables discounting
Non-anchor receivables discounted on obligor credit or credit insurance, where the anchor isn’t the obligor.
Why SCF works
Off-balance-sheet liquidity that rides the anchor’s rating
SCF frees working capital across the ecosystem without eating into the anchor’s banking limits — and prices vendors and dealers on the anchor’s credit, not their own.
Liquidity in 15 days
Once the programme is live, drawdowns are near-instant — receivables convert to cash without the wait.
Rides anchor rating
Vendors and dealers priced on the anchor’s credit, not their own — institutional rates for MSME counterparties.
Plug-and-play onboarding
Digital workflows and minimal paperwork per counterparty — the programme scales without a paperwork bottleneck.
Digital KYC
eKYC and e-signing shrink onboarding from weeks to days — counterparties live in working days, not weeks.
Scales with business
Programme limits grow as invoice volumes and anchor appetite expand — the structure flexes with the ecosystem.
Who wins, and how
One programme, three sets of winners
Supply chain finance lets an anchor unlock liquidity across its whole ecosystem — the buyer extends payables, suppliers get paid early, dealers buy more. Everyone’s working capital improves at once.
The anchor (buyer)
Reverse factoring
- Extend payables without straining suppliers
- Stronger, better-funded supply chain
- Off-balance-sheet when it qualifies — rides your credit rating
- Procurement leverage from early-payment terms
Your vendors
Suppliers / MSMEs
- Early payment on approved invoices
- Priced at your rating, not their standalone one
- No collateral, and without-recourse
- Helps meet the 45-day MSME payment norm
Your dealers
Distributors / channel
- Inventory & purchase funding to buy more from you
- Channel grows without tying up your capital
- Limits set on track record + your anchor link
- Faster offtake, fewer stockouts
Process
How an engagement runs — our 5-step process
A clear path from programme design to live drawdown and scale-up, with senior people on the file at every stage and timelines you can plan around.
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Programme design
3–5 daysMap the vendor / dealer base, payment cycles and target ticket sizes — the shape of the programme is set.
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Lender / platform shortlist
2 daysMatch the profile to the banks, NBFCs and TReDS platforms that fit — channel mix decided here.
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Onboarding pack
5–7 daysCompile financials, KYC, sample invoices and agreements — the documentation that gets the programme sanctioned.
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Sanction
2–3 weeksNegotiate rates, limits, tenor, recourse and documentation — the programme terms are locked.
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Live drawdown & scale-up
ongoingGo-live, counterparty onboarding and programme expansion — drawdowns flow and limits grow with volume.
Where SCF moves the needle & what we’ll need
Built for anchors with a deep vendor or dealer ecosystem
We structure programmes for large anchors across high-volume sectors — and we know exactly what each channel will want before the programme goes in.
Sectors we serve
Pune & Mumbai-based, serving Maharashtra, Delhi NCR, Bengaluru, Hyderabad, Chennai and pan-India anchor ecosystems.
What we’ll need — eligibility & documentation
- Anchor approval / buyer confirmation on the programme
- Last 2 years’ audited financials of the anchor
- GST returns (last 12 months) — anchor & counterparties
- Banker statements — last 6 months
- KYC of anchor, vendors/dealers and authorised signatories
- Sample invoices and purchase orders
- Existing vendor / dealer agreements
- External credit rating of the anchor (if available)
Indicative — varies by lender and programme structure. We tell you exactly what each channel will want before the programme goes in.
Why Finnova
Why anchors choose Finnova for supply chain finance
Four reasons anchors hand us the programme — and keep us on file through scale-up.
01
Multi-channel programme design
TReDS + bank + NBFC, structured to anchor objectives rather than a single lender’s appetite — the channel mix that actually fits.
02
Up to 90% of invoice value
Sized to free real working capital across the ecosystem — not a token line that barely moves the needle.
03
Sanctions in weeks, not months
Typical anchor programmes sanctioned in 3–5 weeks, with first drawdowns possible in go-live week one.
04
Track record
₹4,250 Cr+ mobilised across 100+ corporate-finance mandates since 2011 — the firm-wide depth behind every SCF programme.
Illustrative examples
SCF programmes we’ve structured
A sample of recent supply chain finance programmes, anonymised for confidentiality. Sectors and structures are real; names are not.
Reverse-factoring programme
Auto OEM · 200+ MSME suppliers
An auto OEM wanted to extend payable terms without starving the supply chain. We structured a reverse-factoring programme across a bank line and a TReDS platform — suppliers drew at the anchor’s rating, and the anchor freed payable headroom off-balance-sheet.
[Illustrative]Dealer-finance channel
FMCG distributor network · Peak season
An FMCG distributor network needed inventory funding ahead of peak season. We designed a dealer-finance channel programme with an NBFC, onboarded the first tranche of dealers on digital KYC and went live within three weeks.
[Illustrative] Consultation
Tell us about the ecosystem
One conversation tells you the right channel mix, the indicative pricing and how fast the programme can go live. No pitch — just a straight read from people who structure anchor programmes every week.
Thank you — your enquiry has been submitted
We’ve received your details. A senior member of our team will review them and get back to you within one business day. Everything you’ve shared stays strictly confidential.
FAQ
Supply chain finance, answered
Most bank programmes prefer anchors rated A- or better. NBFCs and TReDS platforms can work with BBB-rated or unrated anchors where cash-flow and vintage support the case. We match programme design to lender appetite.
For well-documented anchors, programme sanction takes 3–5 weeks end-to-end, with first vendor/dealer drawdowns possible in week one of go-live. TReDS onboarding can be faster once the anchor is registered.
TReDS and most reverse-factoring structures are non-recourse on the vendor once the anchor accepts the invoice. Dealer finance and standard bill discounting are usually recourse on the drawer. We structure both based on accounting objectives.
TReDS (RXIL, M1xchange, Invoicemart and C2treds) offers competitive auction-discovered rates, non-recourse for MSME vendors and digital workflows. Bank programmes offer higher ticket sizes, customised tenors and integration with existing credit limits. Many anchors run both in parallel.
On TReDS, MSME vendors can be onboarded in 3–5 working days with digital KYC. On bank programmes, onboarding is typically 7–10 working days per counterparty depending on documentation readiness.
Financing is priced as a discount on the invoice amount, typically 7–11% per annum depending on anchor rating, tenor and channel. Platform fees on TReDS are nominal. Finnova Advisory obtains firm pricing from shortlisted lenders for your case.
Supply chain finance guides
Explore supply chain finance by topic
Channel-agnostic, India-specific guides — from TReDS and the ₹250 Cr mandate to reverse factoring, anchor-programme design and the 43B(h) bridge.