Short on funds? Get your trade financed!

trade finance A new player in the production of automobile components wanted to break into the market by ensuring that he built a strong distribution network. But this would demand that he offers higher credit terms. And that would result in a blocking even more working capital.

This scenario is not exclusive to the automobile or manufacturing industry. It is among the everyday challenges that most organisations face. How does one bring a balance in cash flow by allowing an extension in credit period without blocking their own working capital?

Short term trade financing with terms and tenures of 50 to 120 days. While this is a solution that a lot of banks across the globe provide, the need for validating every invoice or purchase allows for this solution to be feasible only for large organisations and the top tier of their supply chain network. Vayana Network breaks this barrier by digitally enabling the authentication of invoices opening the opportunity to businesses, big and small.

“We can set up a receivables program, payable program, vendor financing program, deferred financing program and a credit card program, by working with corporates and counter parties, getting the documents on the electronic mode. It is a transactional financing product-every transaction is a loan, just like in a credit card, where every line statement is a loan.” Said R N Iyer, founder and chief executive, Vayana Network. A company can also match invoices on a continuous basis with the Vayana Invoice Confirmation and Acceptance Services.

Vayana Network today is partnered with 5 banks and 4 NBFCs facilitating Rs. 4000 crores of financing for atleast 180 companies with supply chains across 15 sectors. In partnership with financial institutions, Vayana Network also offer a commercial card solution for payable financing. Having received a Series A funding from $4 million from IDG Ventures and Jungle Ventures, their aim is to break even in the next 18 months.

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