Cash Flow Crunch? Kredmint's Invoice Discounting Can Help SMEs and Business Owners Unlock Working Capital
As a business owner, you may have a good credit history
Invoice discounting is a #supplychain finance option where businesses sell their unpaid invoices to a finance company at a discount. The finance company then advances a percentage of the invoice value, typically between 70% to 90%, to the business upfront. Once the customer pays the invoice, the finance company pays the remaining balance to the business, minus their fees.
Kredmint's invoice discounting option offers several benefits to businesses that are facing cash flow crunches due to delayed payments:
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- Quick Access to Working Capital
(#workingcapital): With invoice discounting, businesses can get quick access to working capital by unlocking cash from their unpaid invoices. This allows businesses to operate without the stress of waiting for payments from customers and helps them to fund their day-to-day operations. - Improved Cash Flow (#cashflow): By selling their unpaid invoices, businesses can improve their cash flow and reduce their cash conversion cycle. This, in turn, helps businesses to manage their finances better and make informed business decisions.
- Flexible Financing(#flexiblefinancing): Kredmint's invoice discounting option offers flexible financing solutions
to businesses. Businesses can choose to sell some or all of their unpaid invoices, depending on their financial needs. - No Collateral Required (#nocollateral): Unlike traditional financing options, invoice discounting does not require collateral. Businesses can access working capital without pledging their assets, making it a low-risk financing option.
In conclusion, if your business has a good credit history but faces cash flow crunches due to delayed payments from #customer ,#distributors & #retailor, Kredmint 's invoice discounting option can help you unlock cash from your unpaid invoices, providing you with working capital to grow your business. It's a flexible, low-risk financing option that can help businesses to manage their finances better and make informed business decisions.
CEO & Founder - Surety Seven (007) | MBA -ESADE Business School | B.Tech - Delhi College of Engineering | Former Microsoft, Nestle & CERN (Swiss Re)
1 年The question here would be how do you ascertain which invoice will be paid and not defaulted? The clear answer would be by doing a study of the buyer, which is called underwriting. In my opinion, there are 2 existing ways to do this. If the seller wants to secure themselves they may rely on: 1. Trade Credit Insurance: The seller can claim the amount if there is any violation of payment terms by the buyer, however, this doesn’t solve the problem of getting an advance on payment. That issue is generally solved by Surety Bonds or LCs. 2. Surety Bonds (or LCs): LCs do exactly what’s stated in your blog but they require collateral. Surety Bonds on the other hand were introduced in India last year and do not require collateral. That is why, world over Surety Bonds are highly popular. They do NOT REQUIRE COLLATERAL. They can be used to get an advance on the payment from banks (as banks recognize Surety Bonds). They are cheaper and can be issued quickly after passing an underwriting check (as is done by my team at Surety 007) Rahul Nagar: I am hapy to take our discussion forward on Surety Bonds.