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Funding for Auto Component Manufacturers
OEM-linked working capital, vendor financing and capacity-expansion loans for Tier-1, Tier-2 and Tier-3 auto ancillary companies.
How We Serve the Auto Components Sector
Auto component makers operate on OEM schedules: 60–90 day payment terms, strict delivery windows and continuous pressure to add capacity for new platforms. Cash flow is predictable on paper but tight in practice.
We arrange vendor financing programmes against OEM receivables, working capital sized to production schedules, and machinery finance for new lines — including EV component capex, which several lenders now fund on priority terms.
Funding Challenges We Solve
Funding Solutions for Auto Components
Case Study
Tier-2 forging supplier, Faridabad
₹9 Crore — vendor finance + machinery
The Challenge
Payments from a Tier-1 buyer stretched to 85 days while the company needed two imported forging presses to retain the contract. Its bank offered only a top-up loan at 14.5%.
Our Solution
We set up an OEM-anchored vendor financing line that converted receivables to cash in 48 hours, and financed the presses through a foreign-currency-linked machinery loan with an 8-month moratorium.
Business Impact
- Receivable cycle cut from 85 days to 2 days on anchor sales
- Machinery funded at an effective 9.8% vs 14.5% quoted
- Contract retained and volumes up 30% within a year