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Distributor / Dealer Finance

Distributor / Dealer Finance provides short- term financing facility to distributors in order to bridge the liquidity gap between payment to suppliers and proceeds received from the sale of goods.

Process Flow

Features

Exclusivity

Exclusivity

Exclusive credit limit for purchase from corporate supplier

Financing Amount

Financing Amount

Maximum financing amounts up to 70% of invoice amount

Credit Facility Tenor

Credit Facility Tenor

Revolving line of credit for 1 year

Financing Tenor

Financing Tenor

Maximum financing tenor up to 90 days

Interest

Interest

Accrued interest to be paid on financing maturity

Eligibility Criteria

MINIUM 2 YEARS 

Of commercial relationship with corporate supplier

PROVEN PAYMENT 

record recommended by corporate supplier

NO NPL 

reported at any bank in the past

Pricing & Fees

Service Fee 1% credit facility fee on approved credit limit
Interest Rate 10% – 14.5%
Late Fee 3% late fee will be charged on overdue outstanding

Required Documents

For Distributor
1. Certificate of Incorporation / Business License
2. Company Extract from DICA
3. NRC Copies and Household List of Authorized Signatories
4. Last 3 Years Audited Financial Report and Income Tax Receipts
5. Business Profile of Distributor
6. Suppliers List and Top 5 Customer List of Distributor
7.  Last Year Payment Record to Corporate Supplier
8. Financing Request Letter and Meeting Minutes signed by Authorized Signatories
For Corporate Supplier:
1. To sign off Terms and Conditions for Anchor (Distributor/ Dealer Finance) by at least two authorized signatories

Benefits

Benefits to Distributors 

Gain access to a steady source of funding that supports a full working capital cycle
Allow extension of days payable outstanding
Improve operating efficiency and business growth

Benefits to Corporate Suppliers

Increase sales growth by enhancing distributors’ procurement capability
Effective management of receivables while reducing distractors’ payment risk
Strengthen channel relationships and loyalty through supporting supply chain