Invoice Discounting For The IT Industry
The Indian IT industry has grown by leaps and bounds over the previous decade and continues
to have remarkable growth at present.
In fact, Information Technology, as a whole, contributed to approximately 8% of the nation’s
GDP in 2017. In 2019, the sector’s annual revenue amounted to $180 billion. It goes on to
show the vast wellspring of potential this industry harbours both for the economy and
business owners, well attested by the flourishing scene in cities like Bangalore and
It is also a sector that deals largely in credit, with unpaid invoices forming a key
component of the working
capital. Thus, financing solutions such as invoice discounting for
IT can allow IT businesses to optimise their cash flow and provide for
upscaling operations efficiently.
KredX, an integrated cash flow solutions provider heps IT businesses raise working capital
through its invoice discounting platform against simple eligibility criteria.
What Is Invoice Discounting?
Unpaid dues from debtors can tie up necessary finances for an organisation, which it could
use to fund other crucial operations. Invoice discounting
services provide a financing solution that helps unlock such cash.
With bill discounting for the IT industry, firm owners can trade the
unsettled invoices from debtors to avail cash advance prior to the due date. A financial
institution provides the value of those unpaid bills, minus a nominal service fee, to the
This way, an organisation gains access to tied-up funds without waiting for 30 – 90
days, allowing for steady cash flow. A business can utilise the amount to pay its creditors
for infrastructure development as well as towards other development projects.
KredX offers advance against unsettled bills within 24 – 72 hours*. So, you only need
to upload the approved bills from your debtors at our portal to access instant working
capital via our invoice discounting services.
How Does Invoice Discounting Work?
Invoice financing in general and
invoice discounting in specific have become tremendously popular. With the ease of digital
lending, organisations have benefited significantly from the simplicity of this financing
Here’s how invoice discounting for IT works:
- A business issues invoices to its clients, which they then approve for payment at a
- The borrowing business uploads those unpaid bills at the portal of a financial
- The financial institution then assesses the invoices and provides their total value,
less a nominal percentage, to the firm.
- The business then initiates its credit collection process.
- Upon collecting the total dues, it then repays the lender the loan amount.
With KredX, you can avail funds against your business’s outstanding bills conveniently,
courtesy the minimum eligibility criteria.
How Can An IT Firm Benefit From Invoice Discounting?
With bill discounting for IT industry, businesses in the sector can enjoy
the following advantages:
Cash flow is the lifeline of any business, more so with IT firms. If planned properly
enterprises can regulate their working capital to the benefit of its operations more
You can settle your business’s dues on and even before time, invest in ongoing
projects, upgrade equipment, etc. with significant ease by utilising the bill discounting
An IT firm requires a stable cash flow at all times. In that regard, bill discounting allows
organisations to boost their working capital, stabilising its operational flow.
IT businesses looking for hassle-free financing solutions can turn to invoice
discounting for IT from KredX. It not only allows companies to release tied-up
finances but also helps regulate their working capital efficiently.
You can avail finance against your unsettled invoices with notable ease through nominal
documentation, eligibility criteria and minimum turnaround time.
Your business needs to satisfy the following criteria to avail
funds via bill discounting:
- It should be at least 10 months since the business’s
- The organisation’s score should be 650 or more.
- It should have an annual turnover of a minimum of Rs. 25
- At least 2 of the clients of the business should be well
No, invoice discounting is a financing solution that doesn’t get
recorded in the balance sheet. Thus, it bears no impact on a
business’s financial statements.
The following documents are required to avail
invoice discounting services:
- CIBIL record of directors
- Their OVDs for KYC
- Address proof
- Audited financial statements
- Trailing 12-months bank statements
- Board resolution
- Loan declaration
- Personal guarantee letter
KredX does not maintain any ceiling on the amount that a
business can avail via bill discounting. The maximum amount can
go up to 90% of the total invoice value.