Dealer Finance: Smart Working Capital Solution for SMEs & MSMEs
Dealer finance is a short-term credit facility that helps dealers buy goods on credit or finance invoices, improving liquidity and managing cash flow efficiently. It is a game-changer for SMEs and MSMEs looking to optimize their working capital without straining supplier relationships. How Dealer Financing Works Dealer finance involves three parties — dealer , supplier , and a financing institution : Dealer places a purchase order with the supplier. Supplier submits invoice to the lender. Dealer confirms the invoice. Lender pays the supplier. Dealer repays the lender on a later agreed date. Key Features of Dealer Finance Invoice-based financing with flexible terms Tailored credit solutions to meet business needs Supports working capital without affecting daily operations Enhances dealer-supplier relationships Based on corporate creditworthiness , not just dealer score Increas...