Bill Discounting For Manufacturing Industries

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 Manufacturing


How Invoice Discounting Helps The Manufacturing Industry:

Bill discounting for the manufacturing industry can aid in

Unlocking money by clearing unpaid invoices:

  • Get access to quick working capital within 24-72 hours
  • Consistent cash flow requirements with our no collateral policy
  • Optimal use of your unpaid invoices to cover your expenses

Improved business efficiency:

  • Mobilise the supply chain with access to working capital at all times
  • Take care of labour costs, outstanding bills, salaries, distributor charges and much more right on time.
  • Satisfied customers due to improved efficiency

Fuelling business growth by getting access to liquidity:

  • Speed up your cash cycles to take on more orders, boost sales, expand your distribution base, deliver goods on time.
  • Business growth due to more sales
  • Prepare yourself for any surge in demand

How Does Invoice Discounting Work?

  • Manufacturer raises an invoice to the customer that is payable within 30 - 90 days
  • Post KYC and successful onboarding, manufacturer uploads unpaid invoices on the KredX platform to receive working capital
  • Funds get credited into manufacturer’s account in 24 - 72 hours*

Why KredX?

  • Timely access to funds: Get quick access to working capital with KredX’s unique bill discounting technology that empowers distributors to become verified vendors and receive funds within 24-72 hours*
  • No collateral required: Avail working capital with zero collateral
  • Discount rates ~ 1.2-2%**: List unpaid invoices at market discount rates
  • Seamless process: Enjoy a smooth and secure digital process with the technology-embedded KredX platform
  • Real-time status update: Track the status of listed invoices and get updates on them

How KredX Can Help Grow Your Business?

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.

KredX Proposed A Working Capital Solution:

The manufacturer was offered a solution to gain access to quick working capital, wherein:

  • The manufacturer raised invoices to enterprise payable within 60 days and approached KredX with unpaid invoices
  • The manufacturer listed the discounted invoices on the KredX platform for 60 days
  • KredX’s investors purchased invoices as per the terms and conditions
  • Manufacturer received the amount in 24-72 hours thereby, helping the business take on more orders and expand
  • At the end of the tenure, KredX investors received the principal amount invested along with the profit earned


Eligibility Criteria:

  • Business should be at least 10 months old
  • Business should cater to at least 2 large-scale corporates
  • CIBIL score of 620 and above
  • Business should have a minimum turnover of 25 lacs

Documents Required:

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 cheque
  • Tri-partite undertaking involving KredX
  • Memorandum of Association and Article of Association
  • Personal guarantee letter
  • Articles of association

FAQs on Invoice Discounting Manufacturing:

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