Sign In
HBL PhoneBanking     111-111-425

Channel Finance

In order to cater to the Value Chain Financing needs of the borrower, set of guidelines has been developed that extends working capital finance to dealers/vendors having business relationships with corporates in Pakistan. The facility to dealers/vendors are offered under bilateral agreement with corporates. The program consists of following variants:

  • Dealer/Distributor Finance Facility

The facility looks at supporting distributors by providing a restricted Running Finance facility to finance their purchases from large corporates.

  • Supplier/Vendor Finance Facility

The purpose of this facility is to provide early payment options to suppliers of Corporates.  Facility includes receivable finance, payable discounting and invoice financing.​​​

Features

  • Assured and steady source of financin​g

  • Quick and easy processing of loan

  • Efficient after sales servic​e

  • Competitive pricin​g

Benefits of Dealer Finance

  • Benefits to Corporate
    • Builds Channel Loyalty
    • Enforces discipline in collection by introducing single bank.
    • Assured WC facility increases stocking ability
    • Detailed reporting of distributors (activity reports, daily sale MIS, cash inflow forecasting)

 

  • Benefits to Dealer
    • Exclusive Limits based on cash flow basis.
    • Supports to meet its working capital requirement to finance their purchases from principals.
    • Improved liquidity.
    • Assures steady and flexible source of finance at competitive rates.
    • Enhances buying capacity of the distributor.​​                                                           ​


Benefits of Supplier Finance

  • ​Benefits to Corporate
    • Can meet working capital target by increased day's payable outstanding.
    • Can leverage their financial strength to lower cost of goods sold/purchased.
    • Negotiate longer credit terms with suppliers.
    • Support to suppliers to achieve growth plans of the companies.
  • Benefits to Supplier
    • New source of financing.
    • Enhanced working capital capacity.
    • Liquidity optimization and cash flow management.
    • Access to more competitive interest rates.
    • Liquidity matched to the seasonality of the business.​

Requirements

  • Legal Entity Status (partnership, proprietorship or company​)​

  • Length of relationship to be mutually agreed by principal and H​BL

  • Going concern for at least two year​s

  • Minimum annual turnover to be mutually agreed by principal and HBL

  • The primary sponsor must be resident Pakistani aged between 21 years to 70 yea​rs

  • Clean EC​IB

Pricing

  • Dealer Running Finance:  3 months average asking KIBOR plus applicable spread​

  • Vendor Invoice Finance: Matching tenor average asking KIBOR plus applicable sprea​d

Fees and Charges

As per schedule of charges​

Required Documents

  • Company Profile

  • Last 3 Years Audited Financials

  • Management Account​s

  • Projections for next Year

  • Order Book

  • Directors Profile​​

  • ​​Sales breakdown with Corporate​s

  • Product details ( list of products offered​)

  • Business Update and Future plannin​g

  • Details of other bank rel​ation

  • Channel Financing arrangements of HBL with respective corporate​.

  • Collateral (Mortgage land & Building, Hypothecation of stocks & receivable)

  • Personal Guarantees and insurance of assets where applicable

  • Compliance with relevant Prudential Regulations of SBP​



​*Financing facilities are approved at bank's discretion. ​