The service industry forms a critical component of the Indian economy, accounting for nearly 60% of the country’s GDP. Today, the service industry has emerged as one of the largest and fastest-growing sectors, consequently contributing to global output, attracting significant foreign investment flows, and generating employment. However, several factors like increased competition, tighter margins, longer and delayed payment cycle, payment defaults add on to the many challenges that businesses need to endure.
Nonetheless, on a daily basis, the service industry produces a considerable number of invoices, resulting in the need for quick access to working capital. An easy and efficient way to tackle pending invoices and concurrently generate working capital is through Invoice discounting. Invoice discounting for service industry can help fund companies by freeing up cash sitting in unpaid invoices. By getting access to the working capital, businesses can pay the labour costs, procure raw materials, settle outstanding bills, salaries, distributor charges on a timely basis. Additionally, the dependency on unpredictable and fluctuating factors makes it all the more necessary for businesses to have a seamless cash flow system.
Invoice discounting for the service industry can help in more than one way
The following documents are required for the onboarding stage