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Invoice Discounting for vendor invoices to maximise your returns
Improve EBITDA by up to 5% through invoice discounting. Use treasury funded early payments or use off balance sheet financing to extend payable days at 0% interest rate.
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Safe and secure. Compliant with RBI guidelines & IndAS
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Talk to Sales
Safe and secure. Compliant with RBI guidelines & IndAS
Trusted by more than 3000 companies
The Problem Today
Vanilla invoice discounting programs don’t maximise ROI
Flat rate invoice discounting programs treat all vendors the same, irrespective of their risk profile or willingness to pay. This leaves money on the table - that could boost your EBITDA.
Compliance is ignored
Invoices are rarely checked for compliance issues - struck off PANs, incorrect GST, MSME,
e-invoice checks and more.
No central database
Invoices and vendor data is distributed, and often inaccessible when required for audits and future reference.
Unreliable OCR systems
Legacy OCR scanning only offers about 65% accuracy, reducing trust in the system and leaving invoices to be checked manually.
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The Problem Today
AP teams spend 100s of hours booking invoices
This is not only a waste of time and productivity, but many a times the invoice booking process has compliance loopholes, uses outdated technology and there is no central storage system for audit readiness and future reference.
Compliance is ignored
Invoices are rarely checked for compliance issues - struck off PANs, incorrect GST, MSME,
e-invoice checks and more.
No central database
Invoices and vendor data is distributed, and often inaccessible when required for audits and future reference.
Unreliable OCR systems
Legacy OCR scanning only offers about 65% accuracy, reducing trust in the system and leaving invoices to be checked manually.
Flat rate programs
When companies have an invoice discounting program, they offer a standard flat rate to all vendors, instead of maximising return with a dynamic rate program.
Lack of external financing
Most invoice discounting programs are on your balance sheet, which may not agree with your strategy.
Scale, but how?
Most invoice discounting programs fail to scale across your vendor base - primarily due to lack of awareness.
Presenting, an Invoice discounting platform built for corporate finance teams
On-Balance Sheet
Optimise working capital while earning up to 12% risk-free treasury returns
Pay your vendors early and capture cash invoice discounts for EBITDA improvement.
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Off-Balance Sheet
Extend payable days by leveraging funds from external financiers at 0% interest rate
Access network of 20+ financiers in addition to TReDS platforms for your invoice discounting platform. Enable additional working capital facility to all your vendors at a price that works for them.
Price Negotiation
Maximise ROI by letting an AI negotiate a win-win rate with your vendors
Leverage CashFlo’s AI-powered price-discovery engine for discovering the sweet spot for both buyers and vendors for your invoice discounting program.
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WhatsApp Based Flow
Increase vendor penetration by enabling 1-click discounting through WhatsApp
Increase awareness and usage rates by choosing a WhatsApp based, managed services flow with support in 10+ languages. A win for your invoice discounting platform.
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Managed Service
Hands-on, dedicated managed services to ensure program success
Real value unlock through on-ground team to support buyers and vendors. CashFlo runs extensive program for vendor onboarding and training to use the platform.
Explore our entire suite of Corporate Finance Automation Products
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Unlock the potential of your finance team & boost productivity 10x. Let us show you how.
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What is Invoice Discounting?
Invoice discounting is a financing method where businesses unlock working capital by using unpaid customer invoices as collateral to receive early payments. Offered by various invoice discounting companies, this facility helps suppliers bridge cash flow gaps without waiting for the credit period to end. Unlike traditional loans, this method doesn’t require asset collateral and keeps customer relationships intact. It is commonly used in conjunction with factoring and invoice discounting solutions to enhance overall financial flexibility for businesses.
Key Features of Invoice Discounting
Access to Immediate Working Capital: Businesses using invoice discounting services receive cash quickly against approved invoices through a structured invoice discounting process flow.
Retain Customer Control: Suppliers manage their collections, making it a confidential invoice discounting facility.
Custom Financing Terms: MSMEs and large enterprises can choose invoices to discount based on need ideal for MSME invoice discounting.
No Collateral Required: The invoice acts as collateral, making this a low-risk solution compared to traditional loans.
Integrated with Supply Chain Finance: Often combined with invoice discounting and factoring solutions for end-to-end liquidity.
Digital Workflow: Online invoice discounting platforms automate approvals and disbursements, improving speed and accuracy.
Retain Customer Control: Suppliers manage their collections, making it a confidential invoice discounting facility.
Custom Financing Terms: MSMEs and large enterprises can choose invoices to discount based on need ideal for MSME invoice discounting.
No Collateral Required: The invoice acts as collateral, making this a low-risk solution compared to traditional loans.
Integrated with Supply Chain Finance: Often combined with invoice discounting and factoring solutions for end-to-end liquidity.
Digital Workflow: Online invoice discounting platforms automate approvals and disbursements, improving speed and accuracy.
Benefits of Invoice Discounting
Improved Supplier Liquidity
Suppliers receive instant working capital with minimal paperwork, enhancing cash flow through trusted invoice discounting providers or platforms like TReDS invoice discounting.
Faster Payments Without Discounts
With factoring invoice discounting, suppliers maintain invoice value while receiving early funds.
Confidential Financing
Unlike factoring, invoice discounting keeps the buyer uninformed, making it suitable for businesses prioritizing discretion.
How Invoice Discounting Works
Invoice Submission: The supplier submits invoices through an online invoice discounting portal or a TReDS invoice discounting platform.
Financier Approval: The invoice discounting providers verify the invoice, and eligibility is determined.
Funds Disbursed: A percentage (typically 80-90%) is disbursed instantly. The invoice discounting returns are calculated based on payment timelines.
Customer Payment: The buyer pays the full invoice amount at maturity.
Final Settlement: After the buyer's payment, the balance, less the cost of invoice discounting, is transferred to the supplier.
Financier Approval: The invoice discounting providers verify the invoice, and eligibility is determined.
Funds Disbursed: A percentage (typically 80-90%) is disbursed instantly. The invoice discounting returns are calculated based on payment timelines.
Customer Payment: The buyer pays the full invoice amount at maturity.
Final Settlement: After the buyer's payment, the balance, less the cost of invoice discounting, is transferred to the supplier.
Who Uses Invoice Discounting?
Mid to Large Enterprises: They use invoice discounting services to boost liquidity without disturbing credit terms.
MSMEs: Rely on MSME invoice discounting to access working capital without bank loans.
Exporters and Traders: Who benefit from invoice discounting and factoring to manage long payment cycles.
Finance Teams: Utilize invoice discounting facilities to manage cash flow more predictably.
Supply Chain Finance Ecosystems: Often implement factoring and invoice discounting as part of broader liquidity solutions.
MSMEs: Rely on MSME invoice discounting to access working capital without bank loans.
Exporters and Traders: Who benefit from invoice discounting and factoring to manage long payment cycles.
Finance Teams: Utilize invoice discounting facilities to manage cash flow more predictably.
Supply Chain Finance Ecosystems: Often implement factoring and invoice discounting as part of broader liquidity solutions.
Enhance Working Capital and ROI with Our Invoice Discounting Platform
Maximize Invoice Discounting Returns: Unlock up to 90% of your receivables instantly with our AI-powered invoice discounting services.
Zero-Collateral Working Capital: Our invoice discounting facility helps you access funds without pledging assets.
GRN-Based Lending: Combine factoring invoice discounting with real-time goods receipt tracking.
WhatsApp-Enabled Interface: Use online invoice discounting via WhatsApp for easy, one-click transactions.
End-to-End Managed Services: Partner with one of India’s leading invoice discounting providers for smooth implementation and robust ROI.
Zero-Collateral Working Capital: Our invoice discounting facility helps you access funds without pledging assets.
GRN-Based Lending: Combine factoring invoice discounting with real-time goods receipt tracking.
WhatsApp-Enabled Interface: Use online invoice discounting via WhatsApp for easy, one-click transactions.
End-to-End Managed Services: Partner with one of India’s leading invoice discounting providers for smooth implementation and robust ROI.
Frequently Asked Questions
1. Who can avail of invoice discounting?
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What are the advantages of invoice discounting?
What is the difference between invoice financing and factoring?
What is meant by discount rate in invoice discounting?
Are invoice discounting services available online?
What documents are required for invoice discounting?
Can I use invoice discounting for all buyers?
What is TReDS invoice discounting?
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