CHANNEL FINANCING SCHEME POLICY
A structured program to ease payments from Dealers of DAIPL by providing them with a flexible funding facility.
To be used by dealers exclusively for payments to DAIPL towards purchases of goods from DAIPL. Note – This arrangement can not be used for any other purpose(s) other than purchase of goods from DAIPL and payment towards that purchase.
Dealers who fulfilled following criteria will be eligible for availing facility under this scheme; a.
signed dealer agreement with DAIPL
deposited security deposit with DAIPL
completed minimum 6 months of dealership with DAIPL
have minimum business experience of 3 years in air conditioning industry v.
no default in payment to DAIPL during preceding 1 year
is not under defaulter’s list of RBI/ ECGC
Neither of director/ promoter etc. of dealer is in arrear/ default of any facilities availed from YES BANK LTD. / group companies of YES BANK LTD. viii.
non of the facilities from YES BANK LTD. / group companies of YES BANK LTD. have been restructured ix.
Should not have one-time settlement with YES BANK LTD. / group companies of YES BANK LTD. x.
is not a sick/ potentially sick/ referred to BIFR
Have minimum turnover of Rs.20 million as turnover in last audited financial. ii.
Positive PAT (Profit after Tax) and Net Worth for the last 2 years. iii.
TOL/ATNW should be less than 4.
Facility will be provided only when recommended by DAIPL and approved by YES BANK LTD. bank after completion of internal due diligence of YES BANK LTD.
DAIPL and/or YES BANK LTD. Bank reserve(s) the right to add/change/delete any of the clause(s) at their own discretion at any time without assigning any reason(s). Limit Assessment of Dealers
Overall limit of each dealer shall be ‘limits as recommended by DAIPL’.
All billings to dealers under this scheme shall attract a cash discount as per their category based on achievement of turnover (As per Daikin’s dealer credit policy). 2.
This amount shall be adjusted in the invoice value. DAIPL shall not issue any credit note or cheque towards cash discount amount. 3.
Change in cash discount (upward/ downward) is dependant upon decision of management. This has no relationship on change of IBAR/ interest rate/ processing fee/ any other fee charged by YES BANK LTD.
Likely Benefits to dealers
Following benefits can be derived by dealers from this scheme; 1.
Better cash flows and liquidity
Reduced turnaround time
Competitive financing compared to other options
Minimal impact on working capital arrangement
Opportunity to expand banking relationship
Instant income = Cash discount ‘minus’ interest
60 days credit period
An eligible dealer may opt for billing through channel financing or use DAIPL’s credit facility. A dealer can not enjoy channel financing and DAIPL’s credit facility simultaneously. 2.
An eligible dealer can start using DAIPL’s credit facility only when he has paid whole of principal amount, interest amount and any other dues to YES BANK LTD. and submit proof of the same to DAIPL. 3.
DAIPL shall not bill to dealer, who has opted for channel financing, on cash advance basis or based on its own credit policy. 4.
In case a dealer wants to opt out of channel financing and wants to be under DAIPL’s credit policy, he shall be included under DAIPL’s credit policy only when all dues (principal + interest amount) are paid by the dealer to YES BANK LTD.
Maximum normal overall limit (called “Normal Limit”) available to each dealer shall not exceed Rs.5millions. 2.
Credit limit (called “Sanctioned Limit”) and credit days would be decided by YES BANK LTD. after doing field evaluation and due diligence of each dealer but can not exceed the credit amount allowed as per...
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