How NAFA Is Helping Build a Stronger Supply Chain Through Channel Financing In India

Assisting farmers is crucial as the agriculture sector is one of the essential industries in India because it employs 60% of the Indian population and contributes 18% to the GDP of India. Innovations and technologies will foster the growth of agriculture in India. However, the farmers need proper assistance in terms of new equipment, agricultural inputs, and technology. That is where the need for channel financing comes into the picture to facilitate farmers’ requirements on time. The farmers’ growth will boost India’s economy and help make a mark and stand globally.

An agricultural finance company, NAFA, is helping build a more robust supply chain through channel financingin India. NAFA facilitates the distribution process of modern equipment, advanced technologies, and farm inputs from the manufacturers to the farmers. It is highly critical to support MSME dealers or channel partners of the manufacturers to make it possible. NAFA is striving hard to bridge the gap and build a robust supply chain by offering flexible working capital solutions for the distribution channel of Agri and allied products. This piece will help know what channel financing is and how NAFA is building a solid supply chain through channel financing.

What is channel financing?

Channel financing is a method that meets the fund requirements along the supply chain, helping to smooth the business flow without interruptions. Working capital finance helps MSME dealers get the required inventory, and buyers can obtain necessities on credit. And also, the businesses availing of channel financing can have complete access to funds before the maturity date.

Netafim agricultural finance company offers excellent channel financing to facilitate the smooth distribution process by financing dealers and channel partners. It ensures finances timely to the dealers and flexible repayment, hence easing cash flow for the business growth and strengthening the supply chain. With the help of an efficient cash flow through channel financing, it is easier to optimise business and provide farm inputs, equipment, and more to the farmers on time. Here is the link to know the tenure and loan amount that NAFAoffers for the smooth flow of businesses.

Different ways through which NAFA is facilitating a stronger supply chain via channel financing

The strongest pillars of the Indian economy are MSMEs, which deal in developing, manufacturing and processing goods. MSMEs act as catalysts to boost the economy and share a significant chunk of GDP. According to IBEF, there are over 63 million MSMEs across India; in 2019, they contributed 30.5% to India’s GDP and 30% in 2021. At the same time, the sector also creates innumerable job opportunities and accounts for 40% of India’s total exports.

NAFA (Netafim Agricultural Financing Agency) supports MSME dealers and manufacturers’ channel partners by providing flexible channel financing. It, in turn, will help to facilitate the easy distribution of agricultural equipment, farm inputs and more from the manufacturers to farmers. It helps in bridging the supply chain gap between the dealers and farmers, henceforth assisting farmers to achieve their goals of sustainable farming using technology, meeting the increasing demands of food and raising their incomes.

Availing channel financing through NAFA is flexible

Minimum Documentation: MSME dealers can avail of financing from NAFA with a minimum documentation process.

Easy Processing: With the help of advanced technologies, the process of grabbing the opportunity of channel financing is less cumbersome.

Quick Approval: Digitalisation makes the processing of proposals quick and on time.

Advantages of channel financing

• Channel financing helps in boosting cash flow in the business, and timely access to funds enables the smooth flow of supply chain processes.
• It helps build an excellent supply chain ecosystem by managing and optimising inventory.
• It allows access to funds as and when required without any working capital issues and easy flow of supply chain activities.
• It helps in sustainable growth through attractive interest rates.
• Financing also helps to receive early payments by the suppliers, and the buyers can delay the payments till maturity. As a result, fluctuations in demand will not affect supply chain operations.

Conclusion

NAFA is playing an valuable role by building a more robust supply chain through channel financing in India. It enables the supply chain to maintain optimum cash flow and improve operations. NAFA offers one-stop channel financing digital solution with minimum documentation to avail of a loan amount of up to 1 crore with flexible repayment options. Therefore, the MSMEs are flourishing, and in turn, the agricultural department is booming with timely and excellent quality farm inputs and technology.