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The Most Common Industries That Use Invoice Discounting:

The modern financial era we live in permits us to opt for a business loan that doesn’t limit us to the traditional term loan. With an array of options to choose from, understanding what type of loan best suits your business requirement can be challenging. KredX gives you a detailed understanding so as to help ease the decision making process.

  • 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 required. 
  • 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 market.
  • 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 the business.
  • 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 capital. 

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