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Channel Financing: All You Need to Know

Some of the NBFCs namely Bajaj Finserv has come up with a new credit product which is anticipated to help a lot of Indian businesses. The new scheme which is known as channel financing provides funding to facilitate the smooth working of the supply chain. It’s a feasible option for businesses facing difficulties in managing their supply chain, destroying their customer-business relationship with their clients. They can check out the offerings of this particular credit facility and avail it if required.

In a similar vein, assuming you might need it today or tomorrow; here are a few advantages of channel financing you must know.

Benefits of channel finance:-

Collateral-free loan: Arranging collateral to pledge as security against the loan you plan to borrow is a difficult task. This goes without saying if the lender specifies any conditions regarding the use of collateral. For instance, agricultural land and properties that qualify as such aren’t accepted as collateral. There are lenders who don’t even provide loans against commercial or residential plots. Apart from that, if you leave it to the lender, they will demand collateral with a high market value even though your loan amount is quite low. Hence, in a bid to avoid such hassles, channel financing schemes offer collateral-free loans.

Flexi loan facility: Flexi loan facility, as available in most Bajaj Finserv credit schemes, allows you to obtain a line-of-credit for yourself to manage your finances better without applying for frequent loans.
Simple eligibility criteria: There’s no point launching new schemes when it’s hardly accessible by those who need it. Keeping that in mind, the credit scheme comes with a simple eligibility process.
Lastly, it can be availed using the online application facility.

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