For distributors
Is it a loan? Will it affect my CRB listing?
Straight answers for distributors: what you owe, not what sounds reassuring. Where the two structures differ, you get both answers.
The two that decide whether you read on
- Is this a loan?
- It depends which structure your program uses, and the difference is not cosmetic. A conventional distributor facility is credit: treat it as credit and read the terms as credit. Our Sharia-compliant option is a Murabaha sale, not an interest-bearing loan. The financier, as Master Distributor, buys the goods from the supplier and sells them to you at an agreed profit. You pay the agreed price on the agreed dates. It is a binding obligation: if you pay late, recovery follows documented Sharia principles. You are told which before you draw, and the obligations differ.
- Will it affect my CRB listing?
- On a conventional distributor facility, yes. You consent to your financier reporting the facility and your repayment conduct to the credit reference bureaux, and that consent is a term of the agreement rather than something decided later, which bureaux, and how, follows your financier’s own arrangements. Repaying on time builds your record and missing payments damages it.
Which structure your program uses is named before you draw. Read the one that is yours: distributor finance or Shariah-compliant dealer finance.
Before you draw
- What does it cost?
- On a conventional facility, interest and fees, set out in the term sheet. On the Sharia-compliant option the price is the financier’s cost plus a fixed profit, disclosed before you commit and unchanged by time. Either way you see the full cost and the repayment schedule before you draw, and each product page sets out what you owe under it.
- What happens if I do not repay?
- You are pursued for the money under the terms you signed. On a conventional distributor facility that conduct is reported to the credit reference bureaux and it damages your record there. Security taken over the facility can be enforced. We would rather you knew that on this page than found it out afterwards.
To see what your own numbers come to, put your term sheet or quotation into the calculator. It shows the full schedule, with no account and no default rates.
Next
Stock finance here is offered through the anchor you already buy from. Tell us who it is, and ask a person if anything above is unclear.
Questions about who sees your orders, what your anchor can see, and what happens to your data if you leave have their own page. Is my data safe?
Back to stock finance for distributors.