Question 1

What credit options are available for purchasing products from JSW One?

Accepted Answer

We offer multiple credit solutions based on your business requirements, including:

Trade AR        
Channel Financing
Letter of Credit (LC)
Bank Guarantee

The most suitable option depends on your purchase volume, payment cycle, financial profile, and working capital needs.

Question 2

What is Buy now, pay later or Open Credit (Trade AR)?

Accepted Answer

Trade AR allows customers to purchase material and make payment after an agreed credit period upto 45 days. This helps customers manage cash flow and align payments with their sales collections.

Question 3

How can I become eligible for credit facilities?

Accepted Answer

Eligibility is generally assessed based on:
Company's financial strength
Business vintage and track record
Annual turnover
Banking relationship
Payment history
Internal credit evaluation
Customers are required to submit financial statements and other supporting documents for assessment.

Question 4

What is channel financing and how does it work?

Accepted Answer

Channel financing is a financing solution where the financial institution pays the supplier on your behalf. You receive an extended payment period and repay the financier on the agreed due date. This helps preserve working capital while ensuring uninterrupted material supply.

Question 5

What are the benefits of channel financing?

Accepted Answer

Key benefits include:
Extended payment tenure
Improved cash flow management
Higher purchasing flexibility
Reduced working capital pressure
Timely payments to suppliers

Question 6

What is a Letter of Credit (LC)?

Accepted Answer

A Letter of Credit is a commitment issued by your bank assuring payment to the supplier, subject to fulfillment of agreed terms and submission of required documents. It provides payment security to both the buyer and supplier.
An LC may be used when:
Purchase volumes are high
The supplier requires stronger payment security
The business relationship is new
Internal credit limits are insufficient
International or high-value transactions are involved

Question 7

What is a Bank Guarantee (BG)?

Accepted Answer

A Bank Guarantee is an undertaking by a bank to compensate the beneficiary if the applicant fails to meet contractual or payment obligations. It serves as a financial assurance and helps strengthen business credibility.

Question 8

What documents are required to apply for a credit facility?

Accepted Answer

Typical documents may include:
Company registration documents
PAN and GST details
Audited financial statements
Latest bank statements
KYC documents
Additional documents may be requested based on the type of credit facility.

Question 9

How is my credit limit determined and can it be increased later?

Accepted Answer

Credit limits are determined based on factors such as:
Financial performance
Net worth
Business turnover
Purchase volumes
Banking profile
Payment behavior