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HBL Channel Finance Solutions

HBL Channel Finance Solutions aim to provide alternative financing products to suppliers and distributors of our corporate business partners, primarily Small & Medium Enterprises (SMEs). This will help us to facilitate their financial inclusion, promote capacity enhancement and catalyze growth. We provide end-to-end solutions to complement the supply chain infrastructure.

Dealer and distributor finance facility helps with the inventory purchasing requirement of the dealers associated with our selected corporate partners.

Supplier and vendor finance facility helps with the working capital requirement of the suppliers of our selected corporate partners through receivable finance, payable discounting and invoice financing.

Benefits of Dealer Finance

Benefits to Corporate

  • Enhanced channel loyalty strengthens dealer relationships.
  • Boosts revenue due to financing available to dealers to purchase exclusively from corporate.
  • Sales terms modification provides options to modify sales terms with dealers including reduction in cash discounts.
  • Minimize collection hassles. Corporate can receive payment the same day from dealer.
  • Balance sheet de-risking improves DSO, working capital and cash flows.
  • Reduced transaction time and cost enforces discipline in payment cycle by introducing one bank.
  • Reporting Detailed MIS on collections (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

Value proposition for Corporates

  • Enhanced channel loyalty strengthens supplier relationships.
  • Working capital improvement helps in achieving working capital target by increasing DPO
  • Supports growth plans by enabling capacity enhancement of suppliers to achieve company’s growth plans.
  • Purchase terms modification provides options to modify purchase terms with the suppliers including purchase discounts.
  • Reduced transaction time and cost enforces discipline in payment cycle by introducing one bank.
  • Reporting detailed MIS on payments (activity reports, daily sale MIS, cash inflow forecasting)

Value Proposition for Supplier

  • Financial Inclusion- Ease of collateral-free financing at competitive rates.
  • Capacity Enhancement-Improved liquidity as the payment is received on day1.
  • Improves working capital and cash flows. Enhances cash forecasting Capabilities.
  • Enforces discipline in payment cycle by introducing one bank.
  • Preferred Banking Services through the largest branch network of the country

Features and Benefits

  • Convenient and assured financing with relaxed collateral requirement
  • Capacity Enhancement: improved liquidity and purchasing power
  • Quick and easy processing of loan
  • Preferred after sales service
  • Affordable pricing
  • Financing available across Pakistan

Eligibility Criteria

  • Authorized dealers or suppliers of our selected corporate partners
  • The business and sponsor(s) must comply with HBL as well as applicable regulatory policies

Pricing

  • 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

*Financing facilities are approved at bank's discretion.