Largely used in the trading industry, invoice discounting is a type of loan for the seller to obtain the money in advance at discounted rates from the bank. 

In order to decide whether the option of invoice discounting is suitable for your business, here are a few factors to consider before opting for a loan:

• Less chances of bad debts
• Regular and timely payments from the clients
• Meeting minimum turnover levels
• Solid credit history

The core difference between Invoice discounting and invoice factoring is the credit control management and payment collection from the clients. However, in both types, the funds are borrowed against unpaid sales invoices.

Invoice Discounting: Invoice discounting promises deep confidentiality between the clients and the lending institution, because it is the business unit that takes the responsibility of payment collection from the clients. Sales invoices are used as collateral to obtain short-term loans.

Invoice Factoring: The sales ledger and credit control management is executed and maintained by the lending institution. The lending institution buys the sales invoice and takes the responsibility of payment collection from the clients. 

The time taken is 3 working days to get approval. once all the documents are submitted.

Invoice discounting is a great option to capitalize an organization’s working capital.

We ensure continuous growth in your business with our premium services. Unlock the money with those pending/non-cleared invoices. Opt for bill discounting services that allow you to gain access to cash flow without impacting your balance sheet negatively. 

Through our association with lenders, who specialize in invoice discounting, we ensure that a MSME business obtains adequate funds at competitive prices. By using invoice discounting, you can obtain short-term funds from financial institutions based on your outstanding invoices. It not only helps businesses continue running, but also acts as a fuel to the growth of business.

Cash availability to MSMEs, flexible finance solutions, protection from bad debts, confidentiality, higher funds, and zero collateral required are some of the great benefits of invoice discounting.

Meeting eligibility criteria, higher interest rate, higher cost to obtain invoice discounts, available to limited sectors and only for commercial invoices, and shorter repayment tenure are some of the disadvantages of invoice discounting.