The Most Common Industries That Use Invoice Discounting:
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- Construction: Burgeoning subcontractors and contractors in the construction
industry generally means delays in payments. This cash flow crunch experienced in the
construction industry often disrupts the flow of business. Invoice
discounting is, therefore, an apt choice for this industry. The streamlined cash flow allows a
company or a contractor to bid on future work with confidence and compete with larger companies if
- Logistics – Hiring drivers for an ‘on-contract’ or a single delivery
requires disposable cash. Without it, there are a lot of potential problems that could arise. Apart
from jeopardising the financial stability and the growth trajectory of the company, it also risks losing
out on clients. Invoice discounting often solves these issues by injecting cash into a business when it
truly needs it. What’s more? KredX releases this money within 24 – 72 hours* from approval. It
helps a company build flexibility into their financial structure, allowing businesses to move ahead in the
- Manufacturing – The manufacturing industry has distinct financial
requirements. Often, there are on-going repair and maintenance costs for machinery that a company has to
endure. Adding to this, they also have regular payroll and other overhead expenses. Not handling these
finances promptly would result in the business being at a standstill, which would inevitably translate
into loss. This is why many manufacturing businesses use invoice discounting to solve their cash flow
concerns. They reap huge benefits by their unpaid invoice that further smoothens the operations of
- Printing & Publishing – Invoice financing aids this industry in growing and
developing. With this resource , there is no need to wait for months to receive payments. KredX advances a
percentage of invoices within 24 – 72 hours*. This permits a business to rapidly take on a new
contract or make repairs to vital machinery. The seamless cash flow instantly improves business operation
and does not impact your balance sheet either.
- Recruitment – It is an age-old problem in recruitment. There is always a huge
disparity in the time when the staff has to be paid and when you get paid by clients. This blockage can
crumble a business. Invoice discounting bridges this gap and business can avail funds within a few days of
invoicing a client. The payroll issue suddenly disappears, and the company can now focus on growth.
- Security – Since there is no need for lengthy paperwork or a long disbursal
period, this industry makes full use of this type of business funding. The smooth, hassle-free process
allows security firms to take on larger staff and bigger contracts.
- Transport – The inconsistent cost of fuel, timely maintenance fees, and wages,
all are notorious in causing cash flow problems. Being prevalent in the transport industry, it is only
logical for them to leverage their books of accounts for an instant cash injection. This can also help the
company maintain steady growth and provide flexibility to make plans.
- Wholesale & Distribution – A part and parcel of this industry is long-term
credit contracts. This is inevitable in triggering cash flow issues that invoice discounting can solve.
This quick capital injection helps breathe life into a company and improve its cash flow. The
flexible, efficient, and hassle-free nature of invoice discounting makes it an apt option for businesses
operating in the wholesale and distribution industry.
- Technology – Being a very competitive industry, it demands businesses to ramp up
its pace as there are constant requirements for upgrades or updates of the software/hardware. This
requires extensive capital, and one of the easiest and quickest ways of accessing it is by leveraging
unpaid invoices. Invoice discounting also helps the technology industry mitigate payroll issues as they
are always trying to retain their best talent in this highly competitive industry.
- Textile – Yet another highly competitive industry, cash flow is of the essence
for success. Operations are required to be on-going, and if the company doesn’t maintain traction,
it becomes irrelevant, and orders stop flowing in. Funding purchase orders, rent, payroll, inventory, and
other overhead costs are bound to keep depleting your finances. Invoice discounting can help nullify this
effect with a quick injection of capital. This streamlines cash flow and helps the business compete with
larger brands and move ahead in the market.
It can be frustrating when a business experiences cash flow crunches. This situation can lead to adverse
outcomes that may halt the growth trajectory of the company. A smart solution to this is to make use of
modern-day business funding solutions such as invoice discounting. KredX’s invoice discounting
platform allows businesses to utilise their unpaid invoices to gain access to immediate working