Invoice Discounting

Have you received a large order from a renowned business? And, are now short on working capital?  Waiting for the credit period to get the invoice clear puts a strain on your cash flow. Such situations lead to big trouble for Small and Medium-sized businesses.  In such cases, Bank loans are not the best choice for businesses due to the lengthy and inefficient process. That’s where Invoice Discounting - the simplest and easiest form of invoice finance, comes into the picture.   

What is Invoice Discounting?

Invoice Discounting is a process that allows businesses to raise working capital by selling the unpaid invoice to authorized investors such as Banks, NBFCs, HNIs (High Networth individuals), Institutional investors, etc discounting at a percentage of the invoice’s value. 

In the process of Invoice Discounting, there are 3 parties involved,

1. Generate the invoice - The one who’s going to get the payment
2. Name of the invoice - The one who’s going to make the payment
3. Lender - Who purchases the unpaid invoice at a discounted rate

In a complete process of ID, the first two parties determine the extent of safe discounting. 

Why Invoice Discounting is the best option for businesses?

An invoice Discount has been a foremost choice to raise the working capital fund to complete the order. 

• Instant Access

Invoice Discount enables businesses to get instant access to cash tied up in an unpaid invoice. NBFCs and financial institutions have the funds readily available and therefore need not wait for months.

• Quick processing

Unlike bank loans, invoice discount doesn’t demand waiting in a long application queue, a lot of paperwork, and time. The unpaid voice is shown, some documents are submitted, and cash is received.

• No asset

There’s no asset required to convert the invoice into cash. The invoice you generate is the only asset and warrants the funds too. There’s no need of putting your assets at risk, unlike bank loans. 

• Smooth Business Operations

An unpaid invoice is just a piece of paper. Convert these invoices to cash by selling these invoices to a third party at a discounted rate. Utilize this money for smoother business operations. 

At Zircon Consulting, we offer invoice discounting services to businesses of all sizes. Through our network of banks, NBFCs, and financial institutions, we provide our customers with the best discount on their invoices. 

We follow a transparent process to get cash against your company’s unpaid services. Contact us to know what it requires to be eligible for Invoice Discounting.