- KredX Editorial Team
- 24 Nov 20
- business,Invoice Discounting

Small business owners are often faced with a dearth of working capital, which can compromise their operations significantly. If you have faced such an issue in your enterprise, you would know how difficult it can become to ensure efficient supply chain management under this situation. Insufficient working capital also means that you cannot pay your workers on time, causing additional hindrances.
Even though traditional lenders might reject credit applications from your small-scale business, opting for a bill discounting facility may be your best bet in these circumstances.
KredX is a leading integrated cash flow solutions provider, allowing businesses to utilise their unpaid invoices to gain quick access to working capital. However, before you can appreciate the benefits of bill discounting, you first need to understand the basics of invoice financing.
What Is Invoice Financing?
Invoice financing entails the process of raising funds against an unpaid invoice. If your business has an invoice due, you can leverage it, and acquire financial assistance whenever necessary. The financier will pay you a certain percentage of the outstanding amount, generally ranging from 70-90%. Invoice financing has two primary types, namely, invoice or bill discounting and invoice factoring. Here is what these two kinds represent –- Invoice Or Bill Discounting – In this form of finance, you and your company retain full control of the invoice or ledger, against which the funding is issued. This means you would need to collect the dues from clients or customers, before passing the pertinent sum to the service provider.
- Invoice Factoring – In this specific process, your company would need to surrender control of the outstanding ledger to your financer. The factoring service provider is liable, in such cases, to collect the due payments from your customers.
Benefits Of Bill Discounting For Any Small Business
Working capital deficiencies can disrupt the flow and profitability of any business. Nevertheless, smaller companies are the most affected when such financial troubles present themselves. Bill discounting is an efficient way to handle cash inadequacy, without any collateral hypothecation.-
Immediately Converts Receivables Into Cash
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Handling Cash Flow Issues Without Resorting To Traditional Business Loans
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Quick Financing Solutions
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Simple Repayment Process
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Focus On Business Growth