Don’t Let Cash Flow Constraints Hold You Back. Discover Invoice Discounting – A Simple Credit Solution for Vendors
Are you a Vendor or small business to a large corporation, and you supply goods / raw material / services to large corporations?
Then you must have been short on cash at some point, too. After all, none of these large corporations buy without a credit period. Whereas, as a small business owner you need immediate payments, so that you can manage your operations, and you are able to pay your suppliers.
What if we tell you there is a simple yet effective solution? 
Let’s understand with the help of an example.
Ramesh, who owns a laundry shop in the city, has received a huge order from a big hotel. Ramesh has to provide laundry services to the hotel on a daily basis for the next 6 months – with monthly billing of Rs. 25 lakhs and a 30-day payment term. (Meaning, that the customer will clear his payment on the 31st day from the invoice submission) But Ramesh is short on funds as he needs to buy detergents and pay electricity bills for the laundry on time.
He knows that his business does not have enough cash or working capital to fund its operations for the next month if he goes ahead with this order, but he cannot afford to reject this contract from the reputed hotel.
What should Ramesh do?
Now, in this case, invoice discounting can be a smooth and effective credit solution for businesses facing payment delays. With the help of Invoice Discounting, Ramesh can pay his bills immediately – without waiting for the invoice due date/credit period.
The discounting provider will pay the invoice amount on Ramesh’s behalf. When the invoice is due, the discounting provider will collect the total amount from the hotel (Ramesh’s customer). This way, both the parties (Ramesh and Ramesh’s customers) get their needs fulfilled.
In simple words, Invoice discounting is a financial tool that provides businesses with immediate cash flow by offering advances against their unpaid invoices. It’s a valuable strategy for Businesses facing short-term cash flow challenges or seeking to accelerate growth.
If your business faces cash constraints frequently, check out our website to see whether you’re looking for short-term credit, vendor financing, or just a smarter way to manage receivables.
We offer Customized Invoice Discounting tailored to your specific needs. We also provide flexible working capital options.
Here is why you should choose Flexipayment –
- Stronger Supplier/Buyer Relationships – Our program focuses on working with pre-approved buyers who have a proven track record of timely payments and creditworthiness. With these pre-approved buyers, you can confidently keep on supplying goods, resting on us to keep providing you immediate liquidity against your invoices.
- Flexible Funding – You have the freedom to choose which specific sales invoices you want to discount, allowing you to tailor the funding to your immediate cash flow needs. Remember, we charge interest only for the days you actually get your invoices discounted for. So control is always with you.
- Competitive Rates – We offer competitive discount rates, ensuring that you receive fair and beneficial terms for your discounted invoices.
Checkout flexipayment for more details or give us a call at +918976610775