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.
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.
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.