If any NBFC is not a captive finance company, it is advisable to have a major marketing tie-up.
This is mutual; both manufacturing company with whom the tie-up is done and the NBFC - both get their top line at ease. Sourcing the business at dealer's/ distributor's purchase point is far easier than sourcing directly and through Direct Marketing Agents.
Even, cost of sourcing comes down dramatically.
Any defect in asset will be addressed rather quickly by asset manufacturer; service to the customer is better.
Deliquency will be very low; it is highly co-related and more so in the case of income earning equipments /assets.
Sales & marketing people of both company enjoy the synergy of the tie-up and they push themselves and their respective products rather with higher confidence.
If NBFC could offer to finance upto 20% of the product across the country or in the region where the NBFC has a strong presence, any manufactiuring company would like to pick up the 'losses' beyond a reasonable level, besides upfront fixed charge (%) for committment. However, NBFC would do better not to committ for the basket of products by the manufacturing company. Such 'basket' arrangement leads to conflicts and to break-up.
Also to be ensured by NBFC is that not more than 5% of their resources is depolyed for any such tie-ups.
