What is Supply Chain Finance (SCF) and how does it work?

Supply Chain Finance (SCF) is a set of financing solutions that optimize cash flow by allowing businesses to extend payment terms to suppliers while providing suppliers early access to payment. CarmaOne's LMS for Supply Chain Finance manages the complete SCF lifecycle - from program setup and borrower onboarding through invoice verification, disbursement, repayment, and reconciliation. It supports multiple SCF structures including dealer financing, vendor financing, invoice discounting, and channel finance programs.

What SCF program structures does CarmaOne LMS support?

CarmaOne LMS supports the most advanced and flexible SCF program structures: (1) Paying Party Split - divide financing costs between anchor and borrower based on agreed ratios; (2) Flexi Tenure - fixed or usage-based tenure options; (3) Interest Split - allocate interest charges between parties; (4) Lock-in Period & Prepayment Handling - automatic excess interest calculation and adjustment against future invoices; (5) Max Benefit Programs - auto-apply reduced interest rates for early repayments. All structures work without manual intervention.

How does invoice verification through GST portal work?

During the disbursal process, CarmaOne LMS automatically runs multiple verification checks: (1) Invoice authenticity validation through the GST portal API; (2) HSN code matching against declared business activities; (3) E-way bill mapping for payload validation; (4) Duplication checks to prevent double-financing of the same invoice; (5) Over-invoicing detection against typical transaction patterns. This comprehensive verification prevents fraud while enabling genuine invoices to be financed in under 2 minutes.

How do virtual account-based repayments work?

Each borrower in the SCF program receives a unique Virtual Account (VA) linked to their loan. When a payment is received in that VA - whether from the anchor or borrower directly - the LMS automatically: identifies the payment source, matches it to the correct loan, applies principal and interest appropriately, updates loan balances in real-time, and generates accounting entries. This eliminates manual allocation errors and ensures 100% accuracy in repayment tracking.

What fraud prevention features are available?

CarmaOne LMS has comprehensive fraud prevention: (1) Real-time invoice verification through GST portal; (2) HSN code validation against borrower's business profile; (3) E-way bill cross-checking for goods movement proof; (4) Duplicate invoice detection across all financing; (5) Related party transaction checks between borrower and anchor; (6) Velocity checks for unusual invoice patterns; (7) Historical pattern analysis for over-invoicing detection. These checks run automatically during every disbursal request.

How does limit management work at multiple levels?

CarmaOne LMS offers powerful multi-level limit management: (1) Borrower Level - individual limits per dealer/vendor; (2) Anchor Level - aggregate exposure limits per anchor company; (3) Program Level - overall limits per SCF program; (4) Multiple programs can run in parallel with independent limits. Every disbursal is validated against available limits in real-time. The system automatically performs related-party checks between borrower and anchor to ensure compliance.

How does automated bank reconciliation work?

FinOps teams can run daily reconciliation by simply uploading bank statements. If the bank is integrated via AI or H2H (Host-to-Host), this step isn't needed - the LMS performs a full two-way match automatically: LMS → Bank (verifying disbursals hit the right accounts) and Bank → LMS (matching all incoming payments to loans). This ensures no repayment is missed, duplicated, or wrongly mapped, giving complete confidence in your books.

What is the typical disbursal time?

For invoices that pass all verification checks, disbursal happens in under 2 minutes - from invoice upload to loan activation with funds transfer initiated. This is achieved through: straight-through processing with H2H banking integration, pre-configured auto-approval thresholds for smaller tickets, real-time limit and compliance checks, automated accounting entries. The entire flow is designed for speed while maintaining complete audit trails.

How does auto accounting with ERPNext work?

CarmaOne LMS is deeply integrated with ERPNext for seamless, automated accounting. When a loan is disbursed, the system automatically creates the appropriate journal entries. When repayments come in, interest income and principal recovery are booked correctly. No manual journals are required. Books update on a T+1 basis, enabling finance teams to complete month-end closing by the 3rd working day instead of 10th-15th.

Can the LMS handle multiple programs simultaneously?

Yes, CarmaOne LMS is designed for multi-program operations. You can run: (1) Different anchor programs with unique terms; (2) Multiple product structures (dealer finance, vendor finance, invoice discounting); (3) Varying interest rate structures per program; (4) Independent limit hierarchies for each; (5) Separate accounting treatments. Each program maintains its own configuration while sharing common infrastructure, reporting, and portfolio views.

What ROI can anchor companies expect from SCF automation?

Typical results from CarmaOne SCF clients include: (1) 90% reduction in disbursal time (days to minutes); (2) 70% reduction in operations overhead through automation; (3) Zero manual allocation errors with virtual accounts; (4) 100% invoice verification eliminating fraud losses; (5) T+1 accounting instead of monthly reconciliation; (6) Improved borrower satisfaction with instant financing. Anchor companies also benefit from strengthened supplier/dealer relationships and working capital optimization.

How does CarmaOne LMS ensure regulatory compliance?

CarmaOne LMS has built-in compliance features: (1) RBI guidelines compliance for NBFC and bank lenders; (2) Complete audit trail for every transaction; (3) Automated consent management for GST data access; (4) Related party disclosure and monitoring; (5) Interest rate cap enforcement per regulations; (6) Document archival for inspection readiness; (7) Regulatory reporting formats. The system ensures you're always audit-ready for RBI or other regulatory inspections.

CarmaOne | AI Credit Management Platform

Every SCF Structure. One Powerful Platform.

Whether it's dealer financing, vendor programs, or invoice discounting - CarmaOne LMS handles it all with flexible configuration.

Dealer Financing

Finance dealers to stock inventory, with anchor company as the paying party

✓Stock financing
✓Inventory funding
✓Extended credit terms
✓Anchor-backed security

Vendor Financing

Early payment to vendors against approved invoices from anchor

✓Receivables discounting
✓Early payment program
✓Working capital support
✓Anchor credit benefit

Invoice Discounting

Finance against GST-verified invoices with comprehensive verification

✓GST verification
✓E-way bill matching
✓Duplicate detection
✓Instant disbursement

Channel Finance

End-to-end financing for distribution and channel partners

✓Distributor financing
✓Retailer funding
✓Multi-tier programs
✓Sales-linked limits

Why CarmaOne LMS is India's Best SCF Platform

Purpose-built for Indian supply chain financing with GST integration, virtual accounts, and automated reconciliation.

Advanced SCF Structures

Paying Party Split, Flexi Tenure, Interest Split, Lock-in Period, Max Benefit Programs - all configurable without coding.

Invoice Verification

GST portal validation, HSN matching, E-way bill mapping, duplication checks - comprehensive fraud prevention.

Multi-Level Limits

Borrower, Anchor, and Program level limits with automated related-party checks for compliance.

Virtual Account Repayments

Unique VA per borrower with automatic loan allocation. Zero manual errors, instant updates.

Auto Reconciliation

Two-way matching (LMS ↔ Bank) via AI or H2H integration. Complete confidence in your books.

T+1 Accounting

ERPNext integration with automated journals. Month-end closing by 3rd working day.

From Invoice to Disbursal in Under 2 Minutes

Straight-through processing with comprehensive verification at every step

1

Upload

Invoice submitted for financing

2

GST Check

Verified via GST portal API

3

HSN Match

Business activity validated

4

Limit Check

Multi-level limit validation

5

Disburse

H2H banking fund transfer

6

Track

Virtual account repayment

Transform Your SCF Operations

Replace manual processes with intelligent automation

❌Before: Manual SCF Operations

×Days to verify and disburse invoices
×Manual invoice verification calls
×Payment allocation done in spreadsheets
×Month-end reconciliation nightmares
×Fraud detected after losses occur
×No real-time limit visibility

✓After: CarmaOne LMS

2-minute disbursals with GST verification
100% automated invoice validation
Virtual accounts with auto-allocation
T+1 accounting with ERPNext
Fraud prevented at transaction time
Real-time multi-level limit tracking

Powering Supply Chain Finance Across India

NBFCs, Banks, and Corporates trust CarmaOne LMS

90%

Disbursal Time Reduction

70%

Operations Cost Saved

100%

Invoice Verification

How to Choose the Best SCF Platform in India

Complete checklist to evaluate supply chain finance platforms for your business.

1

Invoice Verification

GST portal API integration
HSN code validation
E-way bill matching
Duplicate detection

2

Program Flexibility

Multiple SCF structures supported
Interest/cost split options
Flexible tenure configurations
Multi-program capability

3

Repayment Automation

Virtual account-based collections
Automatic loan allocation
Multi-party payment handling
Real-time balance updates

4

Banking Integration

H2H banking connectivity
Instant fund transfer capability
Automated reconciliation
Multi-bank support

5

Limit Management

Borrower-level limits
Anchor-level exposure tracking
Program-level controls
Related party checks

6

Accounting & Compliance

ERP integration (ERPNext)
Automated journal entries
Regulatory reporting
Complete audit trail

✓ CarmaOne LMS meets all 6 criteria - making it India's most comprehensive SCF platform

SCF Challenges We Solve

Purpose-built to address the specific pain points in supply chain financing

❌ Invoice verification takes days of manual calls

✓ GST portal verification in seconds with automatic validation

❌ Fraud losses from fake or duplicate invoices

✓ Comprehensive checks - GST, HSN, E-way bill, duplication

❌ Payment allocation done manually in spreadsheets

✓ Virtual accounts auto-allocate every payment to correct loan

❌ No visibility into real-time limit utilization

✓ Multi-level limit tracking updated with every transaction

❌ Month-end reconciliation takes 10+ days

✓ T+1 accounting with automated two-way reconciliation

❌ Can't run multiple programs with different terms

✓ Unlimited programs with independent configurations

❌ Disbursals take days due to manual processes

✓ Straight-through processing with H2H banking in 2 minutes

❌ Related party transactions go undetected

✓ Automatic related-party checks at every disbursal

SCF Solutions for Every Industry

Customized supply chain financing for your specific industry needs

Manufacturing

✓Raw material financing
✓Vendor payment programs
✓Dealer inventory funding
✓Distributor financing
✓Export receivables

FMCG & Consumer

✓Distributor financing
✓Retailer credit programs
✓Super stockist funding
✓Channel partner limits
✓Seasonal inventory finance

Automotive

✓Dealer floor planning
✓Spare parts financing
✓Service center funding
✓OEM vendor programs
✓Used vehicle financing

Pharma & Healthcare

✓Stockist financing
✓Hospital vendor programs
✓Medical equipment financing
✓Distributor credit lines
✓API supplier financing

Electronics & IT

✓Distributor financing
✓Reseller credit programs
✓Component supplier financing
✓Project-based funding
✓Service provider credit

Agriculture & Commodities

✓Farmer financing
✓Mandi financing
✓Processor working capital
✓Export financing
✓Warehouse receipt financing

Need SCF customization for your specific industry?

Launch Your SCF Program in Weeks

Fast implementation with dedicated support at every step.

01

Program Design

We understand your SCF requirements, anchor relationships, and financing terms. Configure program structures, limits, and workflows.

⏱️ 1 week

02

Integration Setup

Connect GST portal, banking systems, and accounting platforms. Set up virtual accounts and reconciliation rules.

⏱️ 2-3 weeks

03

Go Live

Onboard borrowers, start processing invoices, and scale your SCF operations with full automation and support.

⏱️ Immediate

Ready to Digitize Your Supply Chain Finance?

Join leading NBFCs and corporates already using CarmaOne LMS

What is Supply Chain Finance?

Supply Chain Finance (SCF) is a set of technology-based financing solutions that optimize cash flow and working capital across the supply chain. By leveraging the creditworthiness of anchor companies (large buyers or sellers), SCF enables their suppliers or dealers to access affordable financing that they might not qualify for independently. This creates a win-win: buyers can extend payment terms while suppliers get paid early.

CarmaOne's LMS for Supply Chain Finance is purpose-built for the Indian market, with deep integration into GST Portal for invoice verification, virtual account infrastructure for automated repayments, and ERPNext integration for seamless accounting. Unlike generic platforms, it supports the specific SCF structures popular in India including dealer financing, vendor financing, and channel finance programs with flexible cost-sharing arrangements.

Key Components of Modern SCF Platforms

Invoice Verification: GST portal validation to ensure invoice authenticity and prevent fraud
Program Configuration: Flexible structures for different SCF programs with varying terms
Limit Management: Multi-level controls at borrower, anchor, and program levels
Disbursement: Straight-through processing with banking integration for instant fund transfer
Repayment: Virtual account-based collections with automatic loan allocation
Reconciliation: Automated two-way matching for accurate book-keeping

Who Benefits from Supply Chain Finance?

Multiple stakeholders benefit from SCF programs: (1) Anchors/Corporates - strengthen supply chain relationships, optimize working capital, and negotiate better terms; (2) Suppliers/Vendors - access early payment at attractive rates, improve cash flow, and reduce collection effort; (3) Dealers/Distributors - finance inventory purchases, extend selling time, and grow business without capital constraints; (4) Lenders - access lower-risk, anchor-backed financing opportunities with automated operations.

With GST making invoice data transparent and verifiable, and digital banking enabling instant fund transfers, supply chain finance in India is experiencing rapid growth. CarmaOne LMS provides the infrastructure that lenders and corporates need to capture this opportunity with automated, fraud-proof, and scalable SCF operations.

Integrate with CarmaOne's Complete Lending Suite

LMS for Supply Chain Finance integrates seamlessly with CarmaOne's other solutions: Enhance borrower assessment with Credits Insights for comprehensive credit analysis, connect with our Loan Origination System (LOS) for complete lending automation, or integrate with our Deal Management System for structured credit operations.

Frequently Asked Questions

Everything you need to know about CarmaOne LMS for Supply Chain Finance

Ready to Transform Your Supply Chain Finance?

Join leading lenders and corporates using CarmaOne LMS. Book a demo and see how 2-minute disbursals become reality.

Purpose-Built LMS for Supply Chain Finance

Watch LMS for Supply Chain in Action

Every SCF Structure. One Powerful Platform.

Dealer Financing

Vendor Financing

Invoice Discounting

Channel Finance

Why CarmaOne LMS is India's Best SCF Platform

Advanced SCF Structures

Invoice Verification

Multi-Level Limits

Virtual Account Repayments

Auto Reconciliation

T+1 Accounting

From Invoice to Disbursal in Under 2 Minutes

Upload

GST Check

HSN Match

Limit Check

Disburse

Track

Transform Your SCF Operations

Powering Supply Chain Finance Across India

How to Choose the Best SCF Platform in India

Invoice Verification

Program Flexibility

Repayment Automation

Banking Integration

Limit Management

Accounting & Compliance

SCF Challenges We Solve

SCF Solutions for Every Industry

Manufacturing

FMCG & Consumer

Automotive

Pharma & Healthcare

Electronics & IT

Agriculture & Commodities

Launch Your SCF Program in Weeks

Program Design

Integration Setup

Go Live

Ready to Digitize Your Supply Chain Finance?

What is Supply Chain Finance?

Key Components of Modern SCF Platforms

Who Benefits from Supply Chain Finance?

Integrate with CarmaOne's Complete Lending Suite

Frequently Asked Questions

Ready to Transform Your Supply Chain Finance?