Channel financing is the best option where lenders can offer the funds to the dealers and business suppliers to improve the supply chain quality.
Benefits of channel financing for supply chains are –
The ability to avail funds without pledging collateral is a major advantage of such a financing solution. Businesses do not need to put forth assets of value against the said advance.
Similarly, with flexi-loan or overdraft options, business owners can only pay interest on the amount they use from a pre-approved pool of funds. This facility limits expenditure.
Most lending institutions approve such business loan applications within a day or two, provided the applicant meets all eligibility criteria. Moreover, the substantial principal amount is an added benefit, enabling suppliers and dealers to handle cash shortages effectively.
You can also know about Business Loan App.
