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, smooth processing, and flexible repayment options to ensure smooth business operations.

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.

Here are the key features of Vendor Finance facility:

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

Here is the eligibility criteria for the Vendor Finance:

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):	Yearly audited financials Expression of interest Periodical list of vendors along with their names & addresses to whom bank should finance
For Vendors:	All necessary KYC documents Copy of Purchase Order/ Contract/ Agreement between the Principal and Vendor for supply of goods, if any. Past 2 years balance sheet & profit or loss account (one year projection, if required) Past 12 months bank account statement. Estimated balance sheet & profit or loss account 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 – Discuss your business 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