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Channel Financing- Empowering Businesses in Challenging Times

Channel Financing- Empowering Businesses in Challenging Times


In the face of a sluggish economy and an overall banking liquidity crisis, Nepal has been grappling with numerous economic challenges. The construction sector, a vital pillar of growth, has experienced a slowdown due to a lack of sufficient liquidity. This, in turn, has had a ripple effect on the paints business, impacting both the construction sector itself and the timely collection of dues. However, amidst these difficulties, a lifeline has emerged for dealers in the form of Channel Financing.

Channel Financing is a program that offers crucial liquidity support from banks, providing a much-needed boost to businesses that have a challenge to manage working capital in these challenging times. Dealers can now access funds at competitive interest rates, empowering them to navigate the economic downturn more effectively. What’s more, this program allows dealers to avail higher loan limits by providing collateral. This expansion of lending options provides dealers with the flexibility they need to sustain and grow their businesses.

In addition to the competitive interest rates, Channel Financing offers several other benefits to dealers. One such advantage is the lower loan processing fees compared to standard loan processing costs. This reduction in expenses makes it more feasible for dealers to seek financial assistance and expand their operations. Moreover, dealers can access ad hoc or temporary limits on top of their availed limit to cover festive and seasonal requirements. This flexibility enables them to seize opportunities and adapt to market demands more effectively.

Recognizing the need to incentivize dealers further, banks have introduced attractive offers to encourage switching. Dealers can now switch banks at a low cost, while also benefiting from free credit cards and critical illness insurance coverage. This not only enhances the value proposition for dealers but also strengthens their relationship with the banking institution.

To sum up, Channel Financing stands as a beacon of hope amidst the economic challenges faced by Nepal. It serves as a testament to the power of innovative financial solutions in revitalizing and driving growth in challenging times. By providing liquidity support, competitive interest rates, and a range of additional benefits, Channel Financing empowers dealers to overcome the obstacles hindering their progress. Moreover, it fosters a symbiotic relationship between banks, dealers, and the manufacturer, strengthening the overall economic landscape and paving the way for a brighter future.

ASIAN PAINTS NEPAL AND NABIL BANK recently joined hands together to support the channel partners of Asian paints across Nepal to give them the benefit of ‘Channel Financing’. The MoU was signed by Mr Gopalakrishnan G, Country Director Asian paints Nepal and Mr Gyanendra Prasad Dungana, CEO of NABIL Bank in an event in Kathmandu.

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