What Is Invoice Discounting?

Invoice discounting is the practice of using a company’s invoices as collateral for procuring financial aid. It is a very short-term approach of borrowing wherein the lender provides the debt amount on the company’s outstanding receivables.

How Does Invoice Discounting Work?

Every business has a network of vendors and their supplies to enterprises generate a lot of invoices.

But the problem lies in the billing cycle which delays the inflow of cash. Invoice discounting is a way of getting upfront funds on the receivables right from the moment the invoices are generated.

Why Invoice Discounting Is Right For Your Business?

In every business, the processing of invoices gets delayed due to the long billing cycle which is 30-90 days and this invariably affects the supply chain.

Invoice discounting helps businesses with continuous and quick cash flow thereby facilitating a seamless supply chain while accelerating the business cycle.

What Are The Two Types Of Invoice

Difference Between Invoice Discounting & Invoice Factoring

Invoice Discounting Invoice Factoring
Collection of invoices is the responsibility of the actual business Collection of invoices is the responsibility of the factoring company
An alternative way of money withdrawal against your invoices Invoices are sold to a third party
Less expensive as the business collects the invoices Factoring is very expensive as the collections department is a paid service
Customer pays the company as normal Customer directly pays the factoring company

Best Invoice Discounting Platform

Welcome to the best invoice discounting platform in India offering a perfect invoice discounting or bill discounting solution for your business needs. The KredX platform provides end to end service that is smooth, simple, fast, and online, ultimately enabling an efficient and transparent process.


  • Off-Balance-Sheet Solution
  • Collateral-Free Working Capital
  • Funds in 24-72 hours
  • Easy Digital Process


  • Timely access to working capital
  • Shorter cash cycles with increased operational efficiency
  • Offering a zero-liability bill discounting service
  • Instant uploading of invoices and real-time tracking of status
  • Quick onboarding