Invoice Discounting For Retail E-Commerce Industry

India has witnessed a massive growth in the market for the retail and e-commerce sector. The prediction in 2017 stated that the revenue generation for this industry will increase from US$ 39 billion in 2017 to US$ 120 billion in 2020. This marks the annual growth of the industry at 51%, the highest growth marked by any country in this industry.

The electronics sector enjoys the largest share of the e-retail market segment in India. However, customers are now showing an inclination towards purchasing other products from online platforms. This has led to an increase in products to meet the varying demands of the customers.

Managing the daily operations and clearing unpaid invoices can be challenging, resulting in the need for quick access to working capital. Invoice discounting can help fund the retail and e-commerce industry by freeing up cash sitting in unpaid invoices. Both retail and the e-commerce industry need to purchase their products from the suppliers. In the case of large orders, the vendors 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 Retail And ECommerce Industry

How Invoice Discounting Helps Retail and E-Commerce Companies?

Invoice discounting or bill discounting for retail and e-commerce industry can help in more than one way

Free tied-up cash in invoices by clearing unpaid delivery invoices:

  • Get access to hassle-free working capital within 24-72 hours*.
  • Sail through high-speed retail services by increasing cash flow with our no collateral policy.
  • Keep your inventories updated by making optimal use of your unpaid invoices

Manage your supply chain efficiently:

  • Fulfilment of the supply chain with access to working capital at all times
  • Effective running of the supply chain from retailers to suppliers
  • Greater customer satisfaction

Multiply business growth by quick access to liquidity:

  • Timely payments leading to an increase in the number of orders
  • More sales resulting in business growth
  • Larger retailers and e-commerce connections for order fulfilment

How Does Invoice Discounting Work?

  • Retailer raises an invoice of the customer payable within 30 - 90 days
  • The unpaid invoices are uploaded on the KredX platform post KYC and verification.
  • The retailer 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
  • Discount rates ~ 1.2-2%**: List unpaid invoices at competitive discounting rates
  • 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

How KredX Can Help Your E-commerce Business Flourish?

A leading e-commerce platform was facing challenges in expansion and further growth due to lack of working capital for retail and availability of enough options to raise the required funds. The led to inefficiency in the management of operational expenses with an immediate requirement to enhance the credit line. Financial institutions followed a stringent process due to which the company decided to opt for invoice discounting for retail and e-commerce services to meet their working capital needs.

KredX Offered A Tailor-made Payable Financing Option:

The company was offered a tailor-made Payable Financing’ product for its vendors by providing them with additional working capital, wherein:

  • Vendors raise invoices against the company payable within 60 days
  • KredX does payables financing and pays vendors on the 55th day
  • Discounted invoices are listed on KredX’s platform for 90 days, thereby giving the company liquidity of 60 + 90 days, i.e., 5 months
  • 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, the company pays the amount back to KredX Investors
  • Recourse is on the company

Result & Impact:

KredX offered an increased revenue creation potential from a service provider perspective as overhead costs could be afforded in time. In addition to this, better adoption of business strategies was possible due to the availability of readily accessible funds and aided in the setting up of tangible growth parameters because of timely revenue retention. This, in turn, enabled the company to meet its objectives in time and enhanced prospects of business growth.

Eligibility Criteria for KredX:

  • Business should be at least 10 months old
  • Business should cater to at least 2 large-scale corporates (MNC | Renowned Brand name | Company with INR 1000+ Cr turnover)
  • Credit bureau score of 650 and above
  • Business should have a minimum turnover of INR 25 Lakhs
  • If the business in question is a startup, minimum funding amount should be $30 Million

Verification & Onboarding Process For Retail And E-Commerce Business:

Businesses have to follow the following two stages after successfully completing signup to begin listing their invoices on the KredX platform

  • Pre-sanction stage: Once an retail and e-commerce 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 meticulous, 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-parties undertaking involving KredX
  • Memorandum of Association and Article of Association
  • Personal guarantee letter
  • Articles of association


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.

As KredX provides complete FMCG financial solutions, we have no upper limit for sanctioned amounts for FMCG invoices and it is solely dependent on the business’s requirements. The upper limit depends on the business requirement and the eligibility as laid out by KredX.

No. A zero-liability invoice discounting service is provided by KredX as the working capital is availed using unpaid bills.

No. Being an ISO 27001:2013 certified private entity which deals with secure information from the clients, KredX takes strict measures in dealing with secured information.

KredX provides the option of short-term investments to our investors due to which the maximum tenure for a discounted invoice is 90 days.