Distributor Finance

Distributor Finance is a mode of financing in which the financier makes payment to the seller of goods on behalf of its distributors and the distributors after a certain credit term pays the money back to the financier. It is a revolving short term financing facility that enables the distributors to take advantage of cash purchase and source higher amount of goods that earn them do business in bigger volume and thus earn higher profit. It requires involvement of 3 parties namely :-

  • Distributor/Client
  • Seller
  • Financier/MFIL


  • Dealer / Distributors of a Corporate exclusively
  • Distributorship from renowned corporate house or MNC’S
  • Minimum three years continuous business experiences in distribution line
  • Minimum business turnover at least BDT 3.00 million monthly
  • Subject to clean CIB report from Bangladesh Bank


  • Ample Current Cash flow to the Distributor/Agent
  • The payment period is associated to the payment commitment to the Principal
  • Increases purchasing power to the Distributor
  • Better financial standing, creditworthiness, and solvency
  • Higher sales volume – the company meet the market demand smoothly
  • No payment hassle for both Principal and Distributor
  • Easier to accomplish seasonal demand immediately
  • Allows quicker ‘just-in-time’ for purchasing or lifting products

Required Documents:

  • Valid Trade License
  • TIN Certificate
  • Updated asset report
  • Bank Statement for last 1year
  • Sales data for last 1 year
  • Copy of Utility bill
  • Rental deed copy
  • Land Documents (if applicable)