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Invoice Discounting

What is invoice discounting- Provides the facility of procurement of funds as soon as the invoices are raised.Know More.<br>

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Invoice Discounting

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  1. INVOICE FINANCING Essential for Business

  2. Cash Flow • Cash flow is the backbone of any business in today’s world.  • Constant and trustworthy revenue is the ultimate success mantra for a company. • The business which does not fall prey to the fluctuating demand and supply are safe and can fulfill their basics like staff salaries and material costs. • Maintaining a healthy working capital in Indiais difficult to achieve because of higher competition.

  3. Problems • Most companies running short of cash mostly turn up to the banks and other financial institutions for funds, which can be in the form of fixed-term loans or overdrafts. • Due to their uniform policies for all businesses whether big or small. • It proves to be a rigid formula in today’s complex market situation. The budding businesses require some flexible policies which can help them in their growth.

  4. Invoice Discounting Process

  5. Go for Invoice Financing • All these restrictions have opened up the way for invoice financing which is a way of vendor finance in India. • It provides the facility of procurement of funds as soon as the invoices are raised • This way the business is able to meet their cash flow and grow simultaneously.

  6. Types of invoice financing • Invoice Discounting- Invoice discounting in Indiais the technique in which the lender provides upto 90% of the total amount of the invoices to the lender and the responsibility of managing and receiving the payments is taken up by the client itself. • Invoice Factoring- It is almost the same as invoice discounting; the only difference is that the responsibility of managing and receiving the payment is with the lender itself.

  7. Advantages of invoice financing • Smoother cash flow- It helps the business in getting rid of the worry about timely payments by the vendors. • Flexible policies — Invoice financing is based upon the amount of business we do, the more we do the business the more we need such funds. • New investments — It can also facilitate the small businesses to procure new technology and projects which can ultimately reduce their overhead expenses. • Frees up time- In invoice factoring the lender takes the responsibility to manage and procure payments from vendors, this frees up some valuable time for the client to focus on core business.

  8. Priority Vendor • Small business can flourish through their policies. Does your start-up need funding? • ContactPRIORITY VENDOR which is known to be the pioneer of invoice financing in India.

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