Invoice Discounting For Fast-Moving Consumer Goods (FMCG) Industry

The contribution of the fast moving consumer goods (FMCG) is fourth in the Indian economy, accounting for 43 % of the overall market. The rise in disposable income has led to an increase in mid-and high-income consumers in urban areas who have shifted to premium from essential products. This shift has led firms to enhance their premium products portfolio. Indian and multinational FMCG players are leveraging India as a vital sourcing hub for manufacturing and cost-competitive product development to cater to international demands.

Invoice discounting can aid the FMCG industry by freeing up cash sitting in unpaid invoices, thus ensuring a seamless supply chain. FMCG industry requires a lot of additional costs like packaging, transportation, storage, etc. Payments for these services require additional working capital. In the case of large orders, the suppliers need to wait for the payments which are cleared anywhere between 30 days to 90 days in most of the cases. Challenges like upfront payment to sellers, delayed receivables, prolonged and delayed payment cycle, high overhead costs, and operational inefficiency further add on to the challenges that the industry could face.

Invoice Discounting For FMCG Industry

How Invoice Discounting Helps The FMCG Industry:

Invoice discounting for the FMCG industry can help in more than one way-

Unlock tied up money by clearing unpaid invoices:

  • Get access to quick working capital within 24-72 hours*
  • Fulfil your cash flow requirements with our no collateral policy
  • Make optimal use of your unpaid invoices for overhead expenses

Optimum supply chain management with invoice discounting:

  • Seamless operation by access to working capital at all times
  • Access to liquidity for covering gaps in various costs
  • Efficient services leading to happier customers

Fuels business growth by getting access to liquidity:

  • Timely payments leading to more orders
  • Growth in business due to more sales
  • Larger warehouses and delivery fleets

How Does Invoice Discounting Work?

  • Business raises an invoice against the customer payable within 30 - 90 days
  • Post successful onboarding and completion of KYC, business uploads unpaid invoices on the KredX platform
  • The business gets funds credited to the account within 24 - 72 hours*

Why KredX?

  • Quick access to liquidity: Get access to fast funds via KredX’s invoice discounting technology empowering vendors and suppliers to be verified and receive funds within 24-72 hours*
  • Collateral free: No need for securities or collaterals to get working capital
  • Discount rates ~ 1.2-2%**: Get unpaid invoices discounted at competitive discounting rates
  • Easy digital process: Enjoy a hassle-free digital process with a unique technology on the KredX platform
  • Off-the-books: Zero-liability invoice discounting service offered by KredX with no impact on your balance sheet
  • Real-time status update: Track the status of listed invoices on the platform

How KredX Has Helped FMCG Businesses Grow?

A leading FMCG company was facing challenges to keep up with the growing demands. This led to inefficient managing of the day to day operational expenses leading to an immediate need to increase the credit line to help with growth and expansion. The need for working capital arose for warehouse expenses, delivery fleets, and others. Owing to the rigorous and lengthy process of other financial institutions, the company decided to go for invoice discounting for transport and other services to meet their working capital needs.

KredX offered a Payable Financing’ option:

KredX offers a holistic solutions to all our patrons from the FMCG industry. The company was offered a tailor-made ‘Payable Financing’ product effectively repurposing their capital needs for better allocation of liquidity, wherein:

  • Vendors raise invoices against the company payable within 60 days
  • KredX does payables financing and pays vendors on the on time
  • Discounted invoices are listed on KredX’s platform for 90 days
  • KredX’s Investors buy the invoices at a higher rate which is pre-decided as per the terms and conditions
  • At the end of 90 days, KredX Investors receive the principal amount invested + profit earned

Result & Impact:

KredX's invoice discounting facility helped the business to better manage its liquidity along with maintaining a better relationship with its customers. Furthermore, it aided in opening new avenues for the company in terms of growth and expansion.

Eligibility Criteria for KredX:

  • The FMCG business should be at least 10 months old
  • The FMCG business should cater to at least 2 large-scale corporates
  • Credit bureau score of 650 and above
  • The FMCG business should have a minimum turnover of Rs 25 Lacs


The following documents are required for the onboarding stage

Pre Sanction stage:

  • KYC of directors
  • CIBIL record of directors
  • Proof of address and PAN Card of company
  • Bank statement of the last 12 months
  • Books of account/audited financials
  • Sales data for the last 1 year
  • Loan Declaration

Post Sanction stage:

  • Board Resolution
  • Post dated cheques
  • Tri-partite undertaking involving KredX
  • Memorandum of Association and Article of Association
  • Personal guarantee letter
  • Articles of association

FAQs On FMCG Invoice Discounting:

Any FMCG business that supplies goods/services to large blue-chip companies can avail the invoice discounting services offered by KredX. The company should be willing to share their financial information and other related documents for the verification process.