Invoice Discounting For Modern Trade

Modern Trade (MT) emerged during the early 1990s in India and this retail format found more takers due to favourable factors like easy and modern shopping experience. It consists of the hugely popular supermarkets and hypermarkets than retail FMCG. In a short span of time, modern trade has skyrocketed its opportunities as it’s the preferred channel for every consumer of the country. Today, Modern Trade commands the FMCG sales, it’s an urban phenomenon that has opened up an important sales platform catering to urban shoppers.

It’s a known fact that modern trade needs a continuous supply of goods and vendors to make a beeline in meeting the huge requirements. The logistics in today’s competitive marketplace might not be a major concern, instead, it's the pending invoices that slow-down the entire process. A sensible approach to deal with this existing crisis is Invoice Discounting.

The supply chain that caters to the MT behemoth is huge and the network further extends to a large number of vendors and suppliers who keep ticking the business continuously. Suppliers definitely require quick working capital for modern trade management to sustain their business.

How Invoice Discounting Helps Modern Trade Businesses?

Invoice discounting for Modern Trade can facilitate in more than one way

Unlocking money by clearing unpaid delivery invoices:

  • Get access to quick working capital within 24-72 hours*
  • Sail through your cash flow requirements with our no collateral policy
  • Cover miles by making optimal use of your unpaid invoices

Efficient supply chain management:

  • Mobilise the supply chain with access to working capital at all times
  • Seamless running of the supply chain from transportation costs to deliveries
  • Happier customers due to lesser efficiency gaps

Fuels business growth by getting access to liquidity:

  • A surge in the number of orders due to timely payments
  • Business growth due to more sales
  • Larger fleet to complete orders

How Does Invoice Discounting Work?

  • Consigner raises an invoice against the consignee payable within 30 - 90 days
  • Post KYC and successful onboarding process, consigner uploads unpaid invoices on the KredX platform
  • The consigner gets fund credited to the account within 24 - 72 hours*

Why KredX?

  • Prompt access to funds: Get working capital swiftly with KredX’s invoice discounting technology enabling retailers, manufacturers, and wholesalers to become verified vendors and receive funds within 24-72 hours*
  • No collaterals: Freedom from collateral and securities to get working capital
  • Hassle-free process: Enjoy a secure digital process with simple technology on the KredX platform
  • Real-time status update: Track the status of listed invoices on the platform

Eligibility Criteria For KredX:

  • The business should be at least 10 months old
  • The business should do business with at least 2 large-scale corporates
  • The business should have a CIBIL score of 680 and above
  • The business should have a turnover of Rs 25 Lakhs or above

Verification & Onboarding Process For Modern Trade

A business has to undergo two stages after successfully completing signup

  • Pre-sanction stage: Once a retail business comes seeking for invoice discounting service on the platform, KredX initiates the process to assess its profile. This stage will need the verification of a set of documents
  • Sanction: After verifying the documents, KredX sends a Sanction Letter which requires a signature from the vendor
  • Post-sanction stage: Once the vendor has signed the Sanction Letter sent by KredX, another set of documents are required by us to begin listing the invoices on the platform

    KredX follows a rigorous, multifaceted evaluation process to verify the authenticity and intent of businesses.


    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 Modern Trade:

    Modern Trade includes supplies goods to supermarkets, hypermarkets and FMCG, 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.