Question 1

What is vendor financing?

Accepted Answer

Vendor financing is a working capital solution where eligible suppliers receive funding against approved invoices before the payment due date. It helps businesses improve cash flow without waiting for customer payments.

Question 2

How does vendor finance work?

Accepted Answer

After goods or services are supplied and the invoice is approved, Ratnaafin provides funding against the eligible invoice. Repayment takes place on the agreed invoice due date through the approved financing structure.

Question 3

Is vendor financing a loan?

Accepted Answer

Vendor Finance is an invoice-backed working capital facility that provides funding against eligible receivables. The facility structure, repayment terms and underwriting depend on the approved program and applicant profile.

Question 4

Who uses vendor financing?

Accepted Answer

Vendor Finance is used by MSMEs, manufacturers, distributors, suppliers and businesses participating in anchor-led supply chain programs that require faster access to working capital against approved invoices.

Question 5

What are the benefits for suppliers?

Accepted Answer

Supplier financing improves working capital, shortens the wait for invoice payments, supports smoother business operations and allows suppliers to fulfil new orders without putting pressure on day-to-day cash flow.

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