M Powering SI’s; Financing Options available in India

Financing options are the life line for the business.  There are multiple financing options available for Channel partners to grow their business and to fight with the cash flow challenges.

The business financing landscape is continually changing, with more options available to business owners than ever before. About half to two-thirds of these businesses seek financing from a number of places, from owner investments to non-bank sources. As small businesses continue to face challenges when it comes to gaining access to capital and taking advantage of opportunities to grow, it’s important that they’re seeking the right type of financing for their particular needs. There’s been a lot of focus on “alternative” lending recently, but how do business owners know when this is the right option to pursue?

One of the most obvious and common answers is that businesses seek financing when they’re faced with an unexpected opportunity or challenge that requires quick capital.

Talking about the IT Eco system, companies in the IT sector have fewer options for accessing capital. Moreover, they often face resistance from traditional lenders. This sector has been struggling to keep up with market transitions.

A SME require timely and adequate capital infusion through term loans and working capital loans, particularly during the early and growth stages. Historically the MSMEs have relied on following sources for financing their needs:

  • Credit Limit from the Distributors
  • Loan from banks
  • Personal savings
  • Loans from relatives
  • Loans from unregulated market
  • Funding from Vendors/ Govt.

Incred Finance



Partners have many options where they can raise and avail the maximum funds.  Incred Finance (who has acquired the business of X10 Financial Services Limited) offers flexible credit facilities to IT resellers for easing their cash flow management and helping partners grow their business.

  1. Inventory Finance Product – This product helps partners to pay their vendors in time for inventory purchases. Incred sets up a line of credit specifically for payments to approved suppliers on behalf of the partner. Partners can avail (subject to requirement and credit worthiness) from 10 lacs to up to 500 lacs collateral free credit limit. We offer additional 60 to 90 days credit period for the partner to repay the loan which will then ‘free up’ the limit for next cycle of payments.
  2. Project Linked Finance – This product is aimed at System Integrators (VARs) who execute quality projects and are often constrained to pitch for larger projects due to inadequate finance availability. Incred offers project based credit limit and extended credit periods to help partners execute projects and manage repayments to vendors.

Asim Hussain said, “Partners have various financing options and we offer the flexible credit facilities to IT partners. We ease partner’s cash flow management and we help partners to grow their business”.

Rashi Peripherals


Financing option/ raising funds from the distributors are also a reliable source for partners.  Rashi Peripherals offers various modes like CDC, Credit subject to credit limit, LC, DG and channel financing. As long as the partner has a good track record there are various modes of financing.

This helps to within limited capital investment, it help partner to scale up its business. These are also very important when sudden large deals are done.

The financing options that are available are Cash Credit and Overdraft against your stock and or customer outstanding that a bank or third party financing agency offers to the channel partner in the IT business. There are other options like Letter Of Credit and or Bill Discounting which are normally used by some when the transactions involved are of high value or imports and these are again offered by banks and third party entities.

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