Corporate Finance

Dealer Finance

Dealer Finance

Dealer financing, also known as vendor financing, is a type of financing option where the retailer or dealer assists customers in securing a loan through partner financial institutions. This model enables customers to obtain on-site financing at the point of purchase.

In the dealer financing model, the retailer acts as an intermediary between the borrower and the financial institutions, often having credit tie-ups with banks or credit unions. This setup allows customers to access quick and convenient financing options directly from the dealership or vendor location.

Key Features of Dealer / Vendor Financing

  • Retailer acts as a financing facilitator
  • On-site financing availability for customers
  • Credit tie-ups with banks and financial institutions
  • Streamlined loan approval process
  • Attractive loan terms and interest rates

Documents Required for Verification and Processing

Required Documents

Required Details
  • Quotations of proposed Plant & Machinery / Vehicles / Inventory
  • Dealer Agreements / MOUs / sale agreements / Marketing Agreements
Business Proof Documents
  • Incorporation certificate/Registration certificate, MOA, AOA, GST Registration certificate/ Trade License, Certified copy registered partnership deed or sole proprietorship declaration
ITRs / Income Proof
  • Last 3 years ITRs and Computations. Audited Balance sheets
  • Last 12 months GST returns copies
Bank statements
  • Last 12 months bank statement.
KYC Documents of Directors / Partners
  • Copy of Pan/Aadhar/Passport/Voter Id/Driving License.
Existing Loans sanction letters Sanction Letters
  • of Existing loans and balance outstanding as on the day.
  • Existing loans Repayment track records

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