×

CREDIT SALE FINANCING

If You are a supplier of goods and/or services to corporate entities on a recurring basis and the payment is delayed by your customer, then Credit-Sale Financing facility could be an ideal financing option for you. Here you can easily free your business capital tied up in receivables. We are also facilitating business process outsourcing to improve your business focus

PRODUCT FEATURES

  • Revolving nature working capital facility
  • Facility tenure is 1 (one) year and renewable
  • Sanction limit is determined considering sales volume and
    cash cycle of your business
  • Fund is disbursed based on the invoices created during transaction
  • Financing is optional; you have the flexibility to draw fund
    according to your business need
  • Service components are built in and helps to improve business focus
  • Interest is to be calculated daily on principal outstanding
  • Recourse based financing

Why Choose Credit-Sale Financing

Attract New Customers

you can easily offer better payment terms without creating cash flow problems.

Enjoy Volume Discount

With the reliable and consistent cash flow, you can buy more from vendors and qualify for volume discounts.

Plan Ahead With Analytical Reports

You can easily review your progress and identify the key growth areas and make it a road map.

Service in addition to financing

You can greatly reduce your overhead cost associated with processing invoices and collecting payments.

How It Works

Invoice Processing

  • Step (01) You receive work-order from Your Customer
  • Step (02) Goods/Services delivery to Your Customer
  • Step (03) You receive delivery challan from your Customer
  • Step (04) SMS for Invoice collection to Us
  • Step (05) We will collect Invoice from Your premises
  • Step (06) Disburse Fund directly to Your Account

Payment Processing

  • Step (07) We will Submit Invoice to Your Customer
  • Step (08) Keep Liaison with Your Customer
  • Step (09) Customer makes payment on due date
  • Step (10) Refund balance to Your Account, after adjustment of Principal, Interest and Other Charges

Documents Need to Apply

  • Sales ledger or party ledger of 06 months (minimum) to 12 months (maximum)
    depending on payment cycle of customer
  • Bank statement for the equivalent period
  • Business operations summary with your customer
  • Sample copy of work orders, invoice etc
  • Loan application duly signed by you
  • CIB undertaking

DOCUMENTS REQUIRED FOR CREDIT VISIT

Serial

Documents Proprietorship Concern Partnership Firm Private Limited

01

Updated Trade License
02 National ID of Directors

03

ETIN Certificate

04

Photograph of the Directors/Owners

05

Registered Partnership Deed

06

Memorandum & Article of Association

07

Form XII

08

Schedule X

09

Certificate of Incorporation

10

Board Resolution (as applicable)

11

Environment Clearance Certificate

12

Audited Financial Statements (latest 3 years)

13

Credit Rating Report (Latest)

Why Choose Credit-Sale Financing

Attract New Customers

You can easily offer better payment terms without creating cash flow problems.

Enjoy Volume Discount

With the reliable and consistent cash flow, you can buy more from vendors and qualify for volume discounts.

Plan Ahead with Aalytical Reports

You can easily review your progress and identify the key growth areas and make it a road map.

SERVICE IN ADDITION TO FINANCING

You can greatly reduce your overhead cost associated with processing invoices and collecting payments.

Name
Name

Your customers are called debtors in this facility.

You authorize your customers to make all payments, payable to you, in the name of United Finance. The debtor agree to this arrangement in writing.

You write a letter to your debtors, with a copy to us, authorizing them to make all your payments in the name of ‘United Finance Limited’. Against your letter, we send a letter, to your debtor, requesting their confirmation to this arrangement. The debtor confirms us in writing that they will issue all your payments to us. Then the assignment of payment is completed. We assist you in every step of this assignment process.

You have to arrange assignment of payment from your debtor after availing sanction letter from us. We must receive assignment of payment before processing any disbursement request.

An institution paying you through account payee cheque and has regular transaction history with you for a period of minimum 1 year, is eligible for assignment.

Yes, You can add debtors anytime subject to our eligibility criterion

You simply inform our Service Executive, and he/she will take necessary steps.

As you know that we are providing service in Credit-Sale-Financing facility. In order to provide service we communicate with your customer to deposit invoices and to perform collection against these invoices. In doing so we must replicate your business process that is (a) your contact point (b) following schedule and (c) follow up mode, etc. Our team of dedicated Debtor Executives are always in touch to nurture this relationship with your customer.

Relationship between you and your customer will remain same, as it was before availing our facility. Except your customer (Debtor) will make payment in favor of UNITED FINANCE.

Yes, We have a dedicated team of Debtor Executives to maintain regular relationship with all the assigned debtors.

If a debtor does not make payments on due date, our Debtor Executive will visit and discuss regarding the payment status with them. If the debtor still does not pay, we will inform you and involve you in the negotiation.

At the time of sanction you have to fill-up “COLLECTION PROCESS REPLICATION” form, through which we have known about your (a) contact point, (b) follow-up schedule and (c) follow-up mode with the debtor. In case of Debtor Relationship, we strictly replicated your collection process.

No. we collect payments as soon as the debtors make them ready. We are more interested in a long term relationship with you than short term unfair gain.

Interest is calculated daily on principal outstanding.

No. interest rate is variable and changes according to market demand

No. you have to route all your invoices of the assigned debtors through us. However, you can take disbursements only if you wish to take fund from us.

Only clients with high credit worthiness are sanctioned this facility. As this facility provides steady working capital support, you can deliver products/services to your customer (debtor) smoothly and timely.

We perform day to day recurring business activities on your behalf. In order to ensure uninterrupted services to you we are maintaining a team of Service Executive, Debtor Executive, Call Center Unit and Office Assistants with motor bikes. To perform these activities, we incur costs. SERVICE CHARGE covers a part of that cost.

Credit-sale financing is a service interlaced facility. We (a) Collect invoices from your premise and submit to your customer (b) make disbursement to your account (in your request) (c) collection processing from your customer (d) provide monthly reports on your business performance and transaction statements.

We have dedicated SERVICE EXECUTIVE to maintain regular contact with you and dedicated DEBTOR EXECUTIVE to build relationship with your customer. Their sole objective is to ensure that our facility should remain up to date to fulfill all your business need.

Service charge is calculated as a percentage of your invoice value and a percentage of the fund disbursed to your account by United Finance.

There are two types of costs associated with your facility (1) Interest cost; if you avail financing and (2) Service charge; applicable for the services we are providing to you.

You receive monthly and bi-weekly ‘Credit Sale Financing Reports’. The report contains various transaction statements and analysis of your business, information and updates on your industry and debtors.

Loan limit is calculated based on the sale volume and cash cycle of your business. Credit period is determined based on your average receivable period with the customers.

Invoice is used as the proof of delivery of products/services to your customer. In other word it is the price your customer is supposed to pay. A predetermined amount of invoice value will be disbursed as loan. The rate will be mentioned in your sanction letter.

We encourage and assist you to open an account in our designated bank so that you can directly receive fund in your bank account.

Our target is to make disbursement within 30 minutes of invoice submission at the debtor’s office.

Top