Vendor Finance

Strengthening Supply Chain Partnerships with South Indian Bank

South Indian Bank’s Vendor Finance Program provides a seamless financing solution for businesses looking to strengthen their supply chain, improve liquidity, and support vendor relationships. Designed for corporates and their trusted suppliers, this facility offers structured financial support, hassle-free processing, and flexible repayment options to ensure smooth business operations without disruptions.

Key Features and Benefits

Stronger Vendor Relationships

No Processing Fees for Corporates

Collateral-Free Financing

Competitive Interest Rates

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What is Vendor Finance?

South Indian Bank’s Vendor Finance facility is designed for direct vendors identified by corporates and approved by the bank. This financing solution provides funding ranging from Rs. 0.10 Crores to Rs. 20.00 Crores, catering to businesses of all sizes. The security is invoice-based, backed by bills or invoices accepted by the corporate, eliminating the need for additional collateral. The facility operates under a Memorandum of Understanding (MoU) between the corporate and the bank, ensuring a structured financing arrangement.

Stronger Vendor Relationships – Enables corporates to support their vendors with structured financing, ensuring timely supply chain management.
No Processing Fees for Corporates – Corporates can offer this facility to vendors at no additional cost, fostering a smooth business ecosystem.
Collateral-Free Financing – Security is based on invoices or bills accepted by the corporate, eliminating the need for additional collateral.
Integrated Software Platform – A dedicated digital portal allows seamless tracking and management of financing, benefiting both corporates and vendors.
Competitive Interest Rates – Rates are determined based on the vendor’s financial strength and creditworthiness, ensuring cost-effective funding.
Dedicated Software Support - Software support with user interface provided to Corporate & Vendor

Criteria	Requirement
Corporate MoU	Vendor finance is available only for corporates with a Memorandum of Understanding (MoU) with the bank.
Vendor Assessment	Vendors must meet South Indian Bank’s credit assessment criteria.
Documents	Vendors must provide valid Purchase Orders, Contracts, or Agreements for the supply of goods.
Primary Security	Invoice/Bills accepted by the Corporate

Document Type	Required Documents
For Corporates (Principals):	Expression of Interest from the corporate. Yearly audited financials. Periodic vendor list with contact details.
For Vendors:	Complete KYC documents. Copy of Purchase Orders or Agreements for supply of goods. Past two years’ balance sheet and profit/loss statement. Past 12 months’ bank statements. Estimated financial projections for the current year.

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Interest Rates

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Additional Charges

1% for each Vendor, No processing charges for Corporate.

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Online Application:
- Enter your details here and our representative will connect with you.

Offline Application:
- Visit Your Nearest Branch – Bring the required documents and discuss your needs with our loan officer. Branch locator
- Complete the Application Process – Submit the necessary paperwork for verification.
- Approval & Disbursal – Once approved, funds are made available quickly.