Anchor Financing Explained
How anchor-led supply chain finance works, and what the facility is assessed on.
Supply chain financeprogramme for SMBs
Fixing cash flow shortfalls for businesses with our supply chain financing solutions.
RBI Registered NBFCCoR B-14.01-787Funding on both sides of the trade
For suppliers raising invoices
Invoice discounting
Suppliers are settled ahead of the due date against invoices already raised. The buyer pays on the original due date, and existing payment terms remain unchanged.
- Tenor
- 30 to 120 days
For dealers placing orders
Purchase financing
Dealers are funded to place larger orders. Settlement is released against a confirmed order, and the dealer repays at the end of the agreed credit period. The credit does not sit on the seller’s books.
- Tenor
- 30 to 120 days
Our approach
Assessment is based on how the business trades and how its buyers settle, rather than on a headline turnover figure.
Buyer settlement behaviour
Average collection period
Receivables ageing
Buyer concentration
Invoice and settlement history
Annual turnover
Existing facilities
Trading vintage
GST filings and banking
Intended application of funds
Agreed 60 daysDays late
Buyer APays close to terms
Paid on day 62+2 days
Buyer BConsistently late
Paid on day 84+24 days
Buyer CGetting slower
Paid on day 101+41 days
Illustrative figures. Same terms on paper, three very different working capital requirements.
How we work
01
Scoping
The anchor’s suppliers and dealers are reviewed: how many there are, the credit periods in place, and the volume a programme would carry.
02
Structure and onboarding
A term sheet sets out the structure and the limits. Each supplier or dealer is then onboarded separately, and assessed on the trade with the anchor alongside the business’s own financial records.
03
Programme live
Suppliers draw invoice discounting against invoices already raised on the anchor. Dealers draw purchase financing against confirmed orders. The programme is reviewed with the anchor on an ongoing basis.
Insights & Resources
₹7.34 Lakh Crore Is Owed Late to India’s MSMEs
The measured backlog of late payments to Indian MSMEs, and why late settlement persists despite the law.
What Late Payment Actually Costs
How delayed settlement turns into financing cost, declined orders and constrained growth.
What Buyer Payment Behaviour Reveals
Why settlement records read as an earlier signal of business health than filed accounts.
Anchor eligibility
What a programme requires of the anchor.
- ₹25 Cr+
- Annual turnoverReported turnover of ₹25 crore or above in the most recent financial year.
- 6 months
- Trading historyA minimum of six months of payment history with the businesses a programme would cover.
- 30–120 days
- Trade tenorRecurring B2B trade on credit terms of 30 to 120 days from invoice date.
Criteria are indicative and describe the anchor rather than a single borrower. Meeting these criteria does not constitute approval of a programme, or of any business within a programme, and every facility remains subject to credit assessment and to the applicable terms, conditions and documentation.
Frequently Asked Questions
For matters not addressed here, contact us.
Set up a programme
Set up supply chain finance programmes for buyers and suppliers within an anchor ecosystem.
Discuss a programme