Cashflo Expands Vendor Financing

CashFlo enables vendors and dealers to gain access to affordable short-term capital and improving buyers' bottom lines by democratising access to working capital across their entire vendor base..

CashFlo, a digital supply chain finance platform that enables vendors and dealers to access affordable short-term capital and improves buyers’ bottom lines by mobilising access to working capital across their entire vendor base, reported an increase in demand for its “Set-Your-Own-Terms” vendor financing solution among its network.

Historically, SMEs have not had the flexibility to access short-term liquidity as needed. Obtaining loans comes with the added stress of putting up collateral as well as the time delay caused by paperwork. In theory, invoice discounting is much simpler because it does not necessitate either.

The use of this facility allows vendors to discount bills on their own terms, allowing SMEs to choose their own deal for vendor financing, with the added benefit of being able to choose their own rate, which invoices to discount, and when to discount.

The platform benefits corporates as it increases SMEs’ participation, resulting in more liquidity, less disruption, lower procurement costs, longer credit terms and a stronger supply chain system.

Vendors typically seek three types of flexibility. The ability to discount an amount of invoice value based on their needs, the ability to discount at any time during the credit period, and the ability to choose their own discount rate for invoices. Allowing only one, or even two, of the above would, however, result in significant costs for SMEs and would be insufficient to achieve complete flexibility.

Ankur Bhageria, CashFlo’s Founder and CEO stated “At CashFlo, the “Set-Your-Own-Terms” service has been rolled out and improved on and the results are incredible. In a short span of time, we have crossed Rs. 10,000 Cr in annualized invoice flows on the platform, with a network of 3 lakh+ MSMEs across nearly 60 of India’s leading corporate supply chains, including the likes of Thermax, Lupin, ITC, CG Power, etc. We have forecasted to grow our invoice flows by over 800% in the next financial year to $10+ billion p.a”