- KredX Editorial Team
- 05 Jan 21
- Invoice Discounting

In theory, invoice discounting is an excellent financing solution. Cash-strapped businesses can release their locked-away funds in unpaid invoices at a discounted rate to meet several short-term obligations.
Be it taking up a new project or paying suppliers in advance; invoice discounting plays a vital role in maintaining a healthy and smooth-running supply chain.
However, manual invoice discounting is full of frills, which can be an impediment to seamless financing and management of day-to-day operations. In this regard, technological disruptions in this discipline have brought about numerous changes.
Blockchain and Machine Learning have been at the forefront of this change, allowing this space to be more dynamic, efficient, and faster.
Drawbacks of Conventional Discounting
Before delving into the nitty-gritty of how technology has revolutionised this system, it may be pertinent to look at a few areas where traditional invoice discounting lacks.-
Time-Consuming Process
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Eligibility
Technological Advancements In Invoice Discounting
Blockchain technology has been a leading factor in boosting invoice discounting’s popularity over recent years. How? Blockchain is essentially a decentralised ledger where transactions once recorded, cannot be tampered with. And invoice discounting is a system that involves more than one stakeholder. Hence, a public ledger that cannot be manipulated is an apt technology in this respect. Besides blockchain, Machine Learning has also contributed to a more dynamic invoice discounting space. Fintechs like KredX have deftly integrated these technologies to create a seamless and hassle-free financing solution for SMEs. Take a look at the advantages these technologies bring –-
Streamlined Verification
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A Greater Ambit
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Uniformity Across The Board
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Dynamic Discounting Rates