Supply chain finance for dealers, distributors and vendors
Supply chain finance is working capital tied to a business's trade with a large buyer or brand, the anchor. Unlike one-off invoice discounting, it runs as a recurring programme: vendors are paid early against approved invoices, and dealers get credit to buy the anchor's stock. It suits a business with repeat buyers, suppliers, dealers or distributors.
Capnix is not a lender and never lends its own capital. The lender decides approval, limit and terms. We map your trade flows, share your file with lenders on our panel only after you give consent, and run the lender application. Getting your loan through us costs you nothing: no joining fee, no file charge, no cut of your loan.
- Loan
- Supply Chain Finance
- Decided by
- The lender
- Cost to you
- ₹0
- Last checked
The facts that matter
| Fact | What it means | Source |
|---|---|---|
| Who sells and buys on TReDS | Only micro, small and medium enterprises sell on TReDS. Any buyer can join, and banks, NBFC-Factors and other permitted institutions finance. | RBI FAQ on TReDS Checked 02-Oct-2026 |
| Risk to the seller | Transactions on TReDS are without recourse to the seller. | RBI FAQ on TReDS Checked 02-Oct-2026 |
| Budget 2026-27 | Announced: TReDS for purchases from micro and small enterprises by central public sector firms, a CGTMSE guarantee for discounting, GeM linked with TReDS. | Union Budget speech 2026-27 Checked 02-Oct-2026 |
| Guarantee on TReDS | CGTMSE covers invoices where buyer and seller are both micro or small enterprises: 75% cover, up to ₹2,00,00,000 for each seller. |
CGTMSE circular 262, 15-Jun-2026 Checked 02-Oct-2026 |
The three common forms
Which form you use depends on which side of the anchor you sit on. The rows below describe usual practice.
| Item | Vendor finance | Dealer or distributor finance | Buyer-led programme on a platform |
|---|---|---|---|
| Who borrows | The vendor that supplies the anchor | The dealer or distributor that buys from the anchor | The suppliers of a large buyer |
| The anchor is | The large buyer | The brand or manufacturer | The large buyer that joins the platform |
| The lender relies on | The anchor's approved invoices | The anchor's strength and the dealer's sales | The buyer's acceptance of each invoice |
| Who repays | The anchor, on the due date | The dealer, usually from sales | The buyer, on the due date |
Supply chain finance on TReDS
TReDS is the platform route for small sellers to large buyers. Only micro, small and medium enterprises can sell, any buyer can join, and the discounting is without recourse to the seller.
| Point | What applies | Source |
|---|---|---|
| Platforms | RBI authorises five: Invoicemart, C2treds, DTX, M1xchange and RXIL. | RBI list of authorised payment system operators Checked 02-Oct-2026 |
| Budget 2026-27 | A mandate for TReDS on purchases from micro and small enterprises by central public sector firms, and a link between GeM and TReDS. | Union Budget speech 2026-27 Checked 02-Oct-2026 |
| Guarantee | CGTMSE cover of 75% where both buyer and seller are micro or small enterprises, up to ₹2,00,00,000 for each seller across all platforms. |
CGTMSE circular 262, 15-Jun-2026 Checked 02-Oct-2026 |
Supply chain finance or invoice discounting?
The two overlap, which is why the rows below separate them. They describe usual practice, not rules.
| Item | Supply chain finance | Invoice discounting |
|---|---|---|
| Who starts it | Usually the anchor or a platform | You, for the invoices you choose |
| Credit risk is read on | The anchor, mainly | The buyer on each invoice |
| How often | A recurring programme | One invoice or batch at a time |
| Best for | Repeat trade with one or two anchors | Occasional gaps on large invoices |
What you will need to share
A lender must see the trade relationship before it funds it. Expect to share the details below. Capnix shares your file only with lenders on our panel, and only after you give consent.
- The anchor's name and your history of trading with it
- Invoices and the payment terms behind them
- GST returns and bank statements for the last 6 to 12 months
- Your Udyam certificate, if you sell on TReDS
Source: Bank of Baroda guide to business loan documents, 29-Apr-2026, checked 02-Oct-2026.
Costs to expect
| Charge | What to expect | Source |
|---|---|---|
| Discount or interest | Charged for the days between funding and repayment, set by the lender or by bids on a platform. | |
| Penal charges | A penalty is a penal charge, not extra interest, and it cannot be added to the loan to earn more interest. |
RBI penal charges circular, 18-Aug-2023 Checked 02-Oct-2026 |
| Key Facts Statement | New MSME term loans sanctioned from 01-Oct-2024 need a Key Facts Statement with the annual percentage rate. |
RBI Key Facts Statement circular, 15-Apr-2024 Checked 02-Oct-2026 |
Worked example: ₹8,00,000 of stock bought on dealer finance
A dealer buys ₹8,00,000 of stock from the anchor on a dealer finance line and repays in 90 days. The example rate is 10.5% a year, the top of the range one public sector bank publishes for micro enterprise loans up to ₹25,00,000. Your lender sets the rate and the programme fees.
| Item | On the stock bought |
|---|---|
| Amount interest is charged on | ₹8,00,000 |
| Interest for 90 days at 10.5% a year | ₹20,712 |
Cost = amount x rate x days / 365. Programme or platform fees are extra, and the anchor may offer its own cash discount terms.
Source: Bank of Baroda MSME loan rates, checked 02-Oct-2026.
Who it suits and who it does not
A strong fit if
- Your business has repeat buyers, suppliers, dealers or distributors
- Trade flows are regular but payment timing creates pressure
- You need finance linked to a trade relationship
Not a fit if
- You have one-off sales with no repeat counterparty
- You do not want the lender to see your buyer or supplier details
How Capnix fits
- Start with your free Capnix score. It reads GST discipline and banking health, the records any lender in a trade programme looks at first.
- Capnix shares buyer and supplier details only after you give consent, and you can withdraw that consent in your Capnix account.
- The lender pays Capnix a fee after disbursal. It is never added to your cost.
More than a loan. A team that gets you there
Funding built around real trade flows
We help a lender see the movement between your buyers, suppliers, invoices, stock and payments.
A better fit for repeat relationships
We approach lenders who fund repeat trade patterns, not only one-off loans.
Where this helps
- Finance vendor or supplier payments
- Support dealer or distributor stock
- Bridge cash flow gaps in anchor-led trade
- Fund recurring purchase and sale cycles
What happens after you start
We work out your Capnix score first, then work the lender applications with you until the money is disbursed.
See how it worksLoan products, rates, and eligibility are determined by the lenders on our panel. Capnix is not a lender and does not lend its own capital. We run your loan journey end to end.
Have a question?
Find answers here
Whether you are scaling up, smoothing cash flow, or buying new equipment, we take your file to the right lender and stay with it through to disbursal.
Read the trade flow. Matched to the right lender
Supply chain finance depends on how money moves between counterparties. We read the buyer, supplier, invoice, inventory, and payment pattern, then shape the case around repeat trade.
From there we approach lenders who understand relationship-led working capital, so funding fits the flow of business rather than a generic loan template.
Real people,
start to disbursal.
No hand-offs and no generic replies. A dedicated team
works the lenders while you keep running your business.