Distributor Financing
This is a mechanism to provide advances by the financial institutions to the buyers, customers, OEM dealers, and distributors. This process provides financial support to the entities to buy materials and inventories from sellers for their course of business.
This instrument helps the buyers to pay the financial institutions after the cash realization from selling the products and inventories without having financial risks. In this way, they get working capital to continue their business and boost the business growth.
Process Flow:
- 1The buyer or distributor creates a purchase order and uploads it to Zuron’s system. With the help of an automated system, the seller gets intimation immediately and, according to its situation, accepts or rejects the PO
- 2The seller has the option to convert the purchase order to an invoice or raise a fresh invoice on Zuron’s platform
- 3After the invoice receipt through the smart platform, the buyer or distributor initiate a financing request which automatically flows to the financial institutions for acceptance and payment processing. If the auto-financing feature is activated, the system automatically fetches all invoice details and shares them with the financial entities.
- 4The seller receives the full payment of the invoice amount, and an outstanding ledger is generated in the name of the buyer's account automatically in the system as per the agreed credit period.
- 5As per the pre-agreed terms and conditions between the parties, the buyer then makes the payment of the invoice amount on the due date, and the rotation of limit starts again
- 6For late payment or partial payment, Zuron’s intelligent system automatically triggers a notification to the seller, as per the penal clause with the financial institution
Distinct Features
Easy limit setting
The system offers immense flexibility to set limits and sanctions on Manufacturer-Distributor combinations or at the individual level of Manufacturer or Distributor
Auto-defined peak limits
Feature to set peak limits automatically during seasonal demand increases during festivals
Customizable Interest parameters
Pre-built and customized interest rates with multi-tire functionalities for peak and the regular season, Interest Sharing, and Interest posting according to the sanctioned terms
Auto alert system for errors
Smart alert system in case of unusual disbursal requests and ambiguities like exceeding invoice limits, higher disbursal requests than average monthly disbursal to avoid fraudulent drawdowns