These FAQs address your common questions about procuring steel on credit from Tata nexarc
A. Informal credit is a favour. When your business grows, their limit may not. Formal credit scales with you – your limit grows, and you never have to ask twice.
A. True, but no paperwork means no track record. A little documentation today builds long-term trust and eligibility. One-time effort, lifetime value.
A. Interest is often hidden in supplier prices. Our rates are transparent and separated from product pricing – giving you better negotiation power.
A. We guide you to manage your CIBIL proactively. With discipline, it becomes your growth passport – helping unlock better rates and limits.
Our Support: Dedicated team to help you maintain healthy credit practices.
A. It may be fast, but it's capped. Formal credit gives you a system that scales as your orders grow – no need for awkward follow-ups.
A. No documents mean no formal record. A credit profile opens doors to bigger limits, better deals, and long-term financial credibility.
Investment in Future: Small documentation effort today unlocks significant opportunities tomorrow.
A. It may feel safer, but it's fragile. Supplier credit can be withdrawn anytime. Our credit is governed, transparent, and built to last.
A. That's exactly why you should start early. Even small limits build your CIBIL and ensure you're ready when big opportunities come.
Remember: Every big business started small. Your credit journey should too!
A. Delaying credit planning can slow down your growth! Building your credit profile today prepares you for big orders tomorrow – don't let them slip by unprepared.
Act Now: Start building your credit profile today so you're ready when opportunities knock!
A. CIBIL isn't a threat – it's your business's financial resume. We help you manage it well, so it works in your favour.
Our Support: We guide you through every step to ensure your CIBIL works for you, not against you.
A. Reporting small delays (SMA-0) doesn't damage your score. We offer structured grace periods – the system is built to help, not punish.
Our Approach: We work with you to maintain healthy credit practices and provide guidance when needed.
A. It's actually your biggest enabler. Think of it like a resume: every payment builds credibility for future funding.
Reality Check: CIBIL is your pathway to financial freedom, not a limitation!
A. Staying invisible limits your growth. Without a credit profile, you'll miss bigger deals. Let's make you visible to the right people.
A. A few delays don't ruin your CIBIL. We help you structure repayments, so small hiccups don't become problems. It's the pattern that matters.
Our Promise: We work with you to maintain healthy credit patterns, not perfect records.
A. Not true. You can bounce back. Timely repayment rebuilds scores – we'll guide you through recovery if needed.
Support Available: Our team helps you navigate recovery and rebuild your credit profile.
A. No one is perfect. CIBIL values consistency over perfection. One-off delays are fine – just stay steady overall.
Key Message: Be consistent, not perfect. CIBIL understands business cycles!
A. Because it earns you better terms. A good CIBIL gets you lower rates, longer durations, and larger limits. No data = no leverage.
Your Data Works For You: Credit history becomes your bargaining chip for better deals!
A. Not building a credit profile is the real risk. Without it, you stay stuck with small orders and informal deals.
Smart Risk: Building credit profile is an investment in your business future, not a gamble!
A. Not at all. CIBIL is for any business that wants to grow. Start small, build credibility, and unlock larger opportunities.
Truth: Every big company started small. CIBIL helps you follow the same growth path!
A. Short delays may not immediately affect your CIBIL score but will attract penal interest. Frequent delays can reduce your credit score and affect future loan eligibility.
Key Takeaway: Consistency matters more than perfection. Avoid making delays a pattern.
A. You get 12 months. After that, renewals are simple – just repay on time and update your financials.
Pro Tip: Maintain good payment history throughout the year for smooth renewals!
A. Repayment timelines range from 30 to 90 days. Depends on your buyer terms, industry practices, and risk assessment.
Note: Timeline is determined during the approval process based on your specific business situation.
A. Yes, you can apply for a credit limit enhancement anytime, based on:
Note: A waiting period may apply before reapplying for enhancement.
A. Yes. Factoring is a formal credit facility, and delays are reported to credit bureaus. Consistent, on-time repayments help build a stronger CIBIL score.
A. You get access to two types of credit:
Working capital support linked to supply chain transactions.
Receivables-based financing against invoices raised to credit-worthy buyers.
Both options: Designed to support your business growth with flexible financing solutions!
A. Not really. Rates are competitive and vary by lender:
Note: All quotations shared by Tata nexarc are inclusive of applicable interest rates.
A. All charges are clearly communicated upfront – no surprises.
Varies from state to state, as per applicable laws.
A. For both Channel Finance and Factoring, the credit period starts from the invoice date.
A. All repayments go directly to the lender's authorised bank account. Easy and traceable.
A. No, Tata nexarc raises the invoice, so you can focus on fulfilling the order.
Benefit: Concentrate on your core business while we handle the administrative work!
A. Late payments attract penal interest — typically 2%–3% per month over the standard interest rate. Charges vary by lender:
Any delayed payment will attract charges as per the slabs below:
Delay in Payment | Delayed Interest Rate (over & above sanctioned Interest rate) |
---|---|
Between 0-7 days | 12% p.a. |
Between 8-30 days | 24% p.a. |
31 days & above | 36% p.a. |
Any delayed payment will attract charges as per the slabs below:
Delay in Payment | Delayed Interest Rate (over & above sanctioned Interest rate) |
---|---|
Between 0-7 days | 12% p.a. |
Between 8-30 days | 24% p.a. |
31 days & above | 36% p.a. |
If repayment is not made within the 5-day grace period, delayed charges apply from day 1 on the outstanding principal:
Delay in Payment | Delayed Interest Rate (over & above sanctioned Interest rate) |
---|---|
Between 0-5 days | 0% |
5 days & above | 36% p.a. |
Note: These rates are subject to change by the respective lenders and may be notified to the customer. Delayed payments may also negatively impact your CIBIL score and affect future credit eligibility.
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