Dealer Trade Advance
Dealer Trade Advance
Trade Advance (TA) is an unsecured overdraft facility given to the Dealers which provides short term credit that optimizes working capital for the Dealer, each disbursement is based on Dealer request subject to eligibility.
Features and Benefits of Trade Advance
*Eligibility is subject to credit parameter checks and this facility is available at select branches only.
Eligibility Criteria
The age of the guarantor or Authorised Signatory should be between 21 years and 60 years.
How Does Trade Advance Work?
Let’s say a two-wheeler Dealer wants TA facility based on their eligibility parameters. Every vehicle financed by Ujjivan Small Finance Bank Ltd. (the Bank) through the Dealer to be adjusted against the advance payment. When the Dealer is unable to settle dues within the timeline, then Dealer would have to transfer the entire outstanding amount to the Bank. If the Dealer crosses the 29-day mark set for the advance limit or tranche, then interest would be levied on the outstanding amount and subsequently Dealer would then have to pay the outstanding amount with applicable interest to keep the account regular.
Document Checklist
| Documents required | Description |
| Application form | - Firm application form (signed by all partners/directors) - Guarantor application form (signed), if entity is other than a proprietorship |
| KYC | - All partner/director KYC - Pan card & Aadhar card (self-attested and OSV) - Guarantor current address proof (self-attested and OSV) |
| Banking proof | - 3-month Banking statement with 1st & last page self-attested & OSV (if the bank statement is collected from branch, then bank seal & sign is required) (If the bank statement is downloaded from Net banking application, then no bank seal & sign is required) |
| GST | - GST certificate and GST return-3B, 12 months with 1st & last page self-attested if provided scanned copy |
| Address proof | Firm address proof is required with self-attested and OSV |
| ITR (If on-boarded under Normal Scheme) | - Latest 2-year ITR with Computation of income with 1st & last page with self-attested and OSV - Latest 2 year Audited Financial Statements 3CB/3CD with P&L and Balance Sheet with 1st & last page self-attested and OSV |
| RSM recommendation | - RSM recommendation on mail |
| Firm specific documents | 1. Limited Liability Partnership - LLP Deed - Shareholding pattern/profit sharing ratio of partners - Board Resolution - Partnership authority letter
2. Partnership Firm - Partnership Deed - Shareholding pattern/ profit sharing ratio of partners - Partnership authority letter (Declaration for authorized signatory) - Partnership Declaration Letter
3. Private Limited/ Public Limited/ One Person Company - MOA & AOA - Certificate of incorporation & registration for Pvt Ltd with self-attestation and OSV - Company shareholding pattern (Key shareholders/ directors having highest shareholding) - Board Resolution (Ltd & Pvt Ltd)
4. Proprietorship Firm - Sole proprietorship letter |
| Other firm specific documents | - Letter of Intent Please note that the above is an indicative list and not exhaustive. |
Interest Rates & Charges
| Interest charged | Upto 17% |
| Penal Charges | 5% (after 59 days on the outstanding) |
| Processing Fee | Rs. 5000 + applicable GST |
FAQs
1: What is Trade Advance?
Trade Advance (TA) is an unsecured overdraft facility given to the Dealers which provides short term credit that optimizes working capital for the Dealer, each disbursement is based on Dealer request subject to eligibility.
2: What are the eligibility criteria for Trade Advance? *Eligibility is subject to credit parameter checks*
3: What is the minimum and maximum overdraft offered?
The minimum amount is ₹3 lakh and the maximum amount is ₹2 crore.
4: What is the interest-free period?
No interest shall be charged during the standard liquidity provision window (29 days from the facility open date). Interest rate shall be applied on the outstanding from the 30th day.
