How can businesses implement supply chain finance?

Businesses can implement supply chain finance by partnering with financial institutions that offer SCF platforms, integrating technology for digital invoicing, and coordinating with suppliers and buyers for seamless payment terms.

What is the difference between supply chain finance loan and factoring?

Supply chain finance helps buyers and suppliers optimize cash flow by extending payment terms, while factoring involves selling invoices to a third party (factor) for immediate cash at a discount.

Can small businesses benefit from supply chain finance?

Yes, small businesses can access early invoice payments, improve cash flow, and reduce collateral requirements, enabling better working capital management.

Is supply chain finance suitable for exporters and importers?

Yes, SCF improves liquidity, reduces payment risks, and supports cross-border trade efficiently. Subject to eligibility and terms.

How does supply chain finance impact global trade?

It enhances liquidity for both buyers and suppliers, reduces payment risks, and enables smoother cross-border transactions through flexible financing options.

What is Supply Chain Finance?

Supply Chain Finance helps businesses convert their invoices into cash, providing the working capital needed to support day-to-day operations. It allows businesses to raise funds against unpaid invoices.

Supply Chain Finance Solutions

Supply Chain Financing is the smart, tech-driven way to ensure your suppliers are paid quickly while you gain flexible credit terms. Access financing of up to ₹ 2.5 Crore to stabilize your business or support your value chain partners. With rates starting from 8% p.a. and an unsecured approach (no collateral needed*), you can manage cash flow efficiently and fuel growth, all through our seamless, quick-approval platform.

Features & Benefits
Documentation
Eligibility
Fees & Charges
Frequently Asked Questions

Loan Amount

Access a supply chain finance loan against your invoices to maintain smooth cash flow, with limits up to ₹ 2.5 Crore.*

Interest Rate

Enjoy supply chain finance Interest rates start from 8% p.a., helping you optimize working capital efficiently. Rates are indicative and subject to NBFC approval.

Flexible Tenure

Finance bills for 30, 60, 90, or 120 days, as per your needs

Quick Approvals

Our online application process ensures fast and efficient approvals

Collateral-Free Financing

No need for mortgages or additional security

Simple Process

Digital application process with minimal paper work

Benefits of Supply Chain Finance Loan

Cash Flow Optimization : Convert invoices into instant cash, ensuring smooth operations, timely supplier payments, and efficient working capital management. Subject to eligibility and NBFC approval.
Collateral-Free Loans : Access funds without pledging assets. SCF loans are provided directly against invoices, reducing the need for security. Loan approval is subject to NBFC assessment.
Flexible Payment Tenures : Choose repayment periods of 30, 60, 90, or 120 days to match your business cash flow cycles.
Digital Approval and Processing : Apply online, submit documents digitally, and receive quick approvals and disbursal, saving time and effort. Processing timelines may vary based on verification.

L&T Finance Business Loans give you the advantage of a trusted financial partner that understands business needs and provides solutions that support long-term growth.

Supply Chain Finance Loan Eligibility & Documents

Eligibility

Residency:

Indian resident

Age:

Salaried individuals: 20 to 70 years
Self-employed individuals: 25 to 70 years

Others:

eligibility can be increased by adding co-applicant income or other verifiable income sources

Documents

KYC Documents

Firm / Company: PAN Card | Address Proof | GST Registration Certificate (if applicable) | Udhyam certificate and other applicable registrations

Proprietor / Partner / Director: PAN Card | Aadhaar Card | Electricity Bill | Rent Agreement | Index II.

Income Documents

Income Tax Returns along with computation for latest 2 years (wherever applicable)

Profit / Loss statement and Balance Sheet for the latest 2 years (wherever applicable)

GST Returns (wherever applicable)

Bank Account Statement

Operative Bank Account Statements for Latest 12 months

Fees & Charges For Supply Chain Finance Loan

List of all fees and charges for Supply Chain Financing

Charge type - Small Medium Enterprise (SME) Supply chain Finance (SCF)
Details
Processing Fees:
Up to 3% on sanctioned amount + applicable taxes
Facilitation Fee*:
*A facilitation fee is levied on the customer to cover the company’s costs related to facilitating the transaction between the borrower and LTF. It is based on acquisition expenses including digital processing, manpower and other services.
For loans with Sanction up to Rs. 25 lakhs - Up to Rs. 5,000/- + applicable taxes
For loans with Sanction above Rs. 25 lakhs – Up to Rs. 10,000/- + applicable taxes
Asset Valuation & Verification (for semi secured loan)
Up to 1% of loan amount + applicable taxes
EMI Dishonour/Bounce Charge*
*A bounce charge is a charge for
(i) dishonour of any repayment instrument; or
(ii) non-payment of instalment(s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate
As shown in the table below

Charges in Rs.

Loan sanction amount in Rs.

₹ 500

< 5 lacs

₹ 1000

5 – 50 Lacs

₹ 1500

>50 Lacs – 2 Cr

₹ 2000

>2 Cr

Penal Charge/Late Payment Charge (LPC)
- Up to 2% p.m. on overdue amounts + applicable taxes
Part Prepayment charges
Nil
Annual Maintenance Charges
Nil
Foreclosure charges
Nil
Repayment instrument Swap Charges (per swap)
Up to Rs.500/- +applicable taxes (applicable only for branch walk-ins)
Document retrieval / Duplicate NOC charges
Nil for digital copy.
Charge for paper copy is Rs.1000/- + applicable taxes per statement/letter/certificate.
Original Title Documents (OTD) late collection charge (for semi secured loan)
Rs. 35 per day + applicable taxes
Non-Compliance charges (for semi secured loan)
Up to 1% p.a. of principal outstanding loan amount + applicable taxes
Charges incurred by LTF for initiating action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002: (for semi secured loan)
Issue of Loan Recall Notice = Up to Rs. 500/ –
Issue of Demand Notice = Up to Rs. 1,000/ –
Issue of Possession Notice = Up to Rs. 2,000/ –
Applying District Magistrate Order = Up to Rs. 8,000/ -
Taking Physical possession. Up to Rs. 20,000/ –
Actual cost incurred will be debited for expenses pertaining to Publication of Possession Notice / Publication Demand Notice / Publication of Sale cum Auction Notice. All applicable taxes will be added.
Legal fees and charges
Up to Rs.50,000/- + applicable taxes
Recovery charges
Up to Rs. 15000/- + applicable taxes
Field collection service charge
Rs. 500/- per collection + applicable taxes
Auction Fees (for semi secured loan)
Up to 1% of auction sale amount + applicable taxes

How to Apply For Supply Chain Finance?

Apply for Supply Chain Financing with these steps

FAQs & Support

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Business Loan

As a steel and aluminum trader, I needed constant capital post-COVID. L&T Finance's DLOD service impressed me with a seamless, fully digital process. Their executive guided me well, leading to a swift sanction. The competitive interest rate & round the clock transaction facility were game-changers for my business.

Jignesh Solanki

Mumbai

Business Loan

Setting up a molecular lab post-pandemic was challenging, but L&T Finance made it possible with quick turnaround, minimal documentation, and competitive rates. Thanks to their support, I expanded services, reduced waiting times, and offered new tests, serving more people efficiently.

Dr. Hrishikesh Chevle

Thane, Maharashtra

SME Loan

As a 2nd generation entrepreneur, expanding my PVD coating business was made easy with L&T Finance. The process was fast & smooth, with minimal paperwork & the best interest rates. All documents got digitally uploaded & approved. PLANET App mae part payments & additional withdrawals easy.

Harsh Gosalia

Pune, Maharashtra

SME

The special aspects of L&T Finance SME Loans are their faster turn around time, minimal documentation. I had a very good experience with L&T Finance SME Loans and I recommended it to a lot of my Doctor friends who have equally benefitted.

Dr. Hrishikesh Chevle

Pathologist, Alpine Diagnostics