Dealer Financing

Range of attractive financing alternatives for dealers

Dealer Financing

About Dealer Financing

HDFC Bank offers a range of credit solutions to dealers and customers of large corporations. Facilities are offered stand-alone, against collateral or through structured transactions. HDFC Bank helps dealers meet their funding needs at competitive interest rates. It results in a satisfied and loyal dealer network, helps increase sales and streamlines working capital management.

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Bill Discounting

HDFC Bank’s specialist trade finance team offers dealers bill discounting services, backed by a nationwide network of branches and correspondent banks. The services are customised to suit dealers’ need for short term finance, from sale to payment. As a dealer, you can get:

  • Short-term finance
  • Credit of up to 90 days for purchase of goods to corporates
  • Credit line is based on financials of dealer and need for funds
  • Minimal documentation
  • A letter of recommendation specifying the dealer's history, track record, etc. and a commitment to stop supply in case of default would be taken from the corporate

Factoring Solutions

How is your business supposed to grow when it takes so long to collect accounts receivable? What do you do when you need quick access to working capital, but don't want to take on more debt and dilute your equity? With HDFC Bank factoring solutions, you will never face these roadblocks.

  • Under factoring solutions, HDFC Bank would purchase a pool of receivables or a set of identified receivables from the company
  • Receivables may be purchased with specified margins

Mortgage-Backed Term Loans

HDFC Bank’s commercial mortgages make owning, refinancing, or renovating commercial real estate easy and affordable. Dealers can also use these loans for working capital.

  • Term loans provided for working capital and to acquire business premises
  • Tenors of up to 5 years
  • Limits based on financial projections, acceptable DSCR and security provided
  • Up to 75% of the project cost would be funded. Balance to be promoter's contribution
  • Facilities to be secured by assets being financed. Collateral security may be obtained in certain cases
  • Minimal documentation

Working Capital Facilities

HDFC Bank’s Working Capital Finance helps dealers easily meet their cash flow requirements.

  • HDFC Bank extends working capital facilities through cash credit, WCDL, LCs, guarantees and export credit to select dealers of corporates
  • Credit is provided based on analysis of financials, need for funding, regulatory guidelines and security
  • Funding is provided against hypothecation of stocks and book debts with a minimum margin of 25%. Collateral security may be taken in specific cases
  • Minimal documentation