How Invoice Discounting Works In India<\/b><\/p>\n
The perfect alternative to a business loan, invoice discounting is a form of raising instant funds for your business. It creates an increase in cash with money that is already owed to the business by your customers. Invoice discounting is simple and straight forward. If you sell goods or offer services on credit, you are eligible for the service. The basic process requires you to use the invoices of your company to raise funds. The lender will pay a lump sum which is usually 70 percent of the invoice amount. This money can be used for any purpose in the business and the customer will pay on the due date. The customer will not be aware of the transaction that has taken place between you and the lender. If you do not want to wait for 30 to 90 days for the customer to make the payment, use invoice discounting. Let us take a look at the pros and cons of <\/span>invoice discounting in India<\/span><\/a>.\u00a0<\/span><\/p>\n If you are in immediate need of funds and do not have the time or patience to go through the process of a business loan application, you can use invoice discounting. It will give access to cash almost instantly so that you can keep the business running smoothly. It is perfect for those who need short term funds and cannot wait for weeks to get approval.\u00a0<\/span><\/p>\n It is important to remember that invoice discounting is not a one-time thing and you can use it to manage the cash flow from time to time. You can build a relationship with the lender and continue to discount the invoices whenever you need to make payments. It can become a regular form of raising short-term funds.\u00a0<\/span><\/p>\nPros of invoice discounting\u00a0<\/b><\/b><\/h2>\n
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Instant cash\u00a0<\/b><\/h3>\n<\/li>\n<\/ul>\n
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Manage cash flow\u00a0<\/b><\/h3>\n<\/li>\n<\/ol>\n