The manufacturing industry is one of the most prominent sectors that account for a significant share in India’s GDP. Its potential is so immense that it has emerged as the high growth and chief wealth producing sectors in the country. It indulges in either the creation of new commodities or value addition, and that makes it an excellent zone for investments.
Nevertheless, on a daily basis, while these are the mainstay, it invariably generates a huge number of invoices. The challenge lies in clearing the unpaid invoices since it affects the continuity of the supply chain. Manufacturing industry involves a huge number of vendors who form the suppliers with humongous transactions. The settlement of bills follows a delayed and conventional procedure affecting vendors who fail to get the payment in time. A simple and effective means of tackling your pending invoices and simultaneously generate quick working capital for the manufacturers is through Invoice discounting or Bill Discounting. By getting access to the working capital you can pay the labour costs, outstanding bills, salaries, distributor charges, and much more right on time.
Bill discounting for the manufacturing industry can aid in
One of India's leading manufacturing companies faced certain challenges in terms of maintaining their day to day operations and keeping up with the increasing demand. What added to their woes was the rising operational costs and challenges procuring raw materials, prompting a need to increase the working capital to fuel growth and expansion. Since financing options offered by traditional financial institutions involve cumbersome documentation and lengthy processes, it became challenging for the company to get access to the working capital they required to keep the business running.
The manufacturer was offered a solution to gain access to quick working capital, wherein:
The following documents are required for the onboarding stage