Invoice Discounting Facility and Top 6 reasons why you should review it regularly
A lot of factors influence the day-to-day operations of an SME business, the most important being the cash flow. As per International Finance Corporation, the overall financing gap in the MSME space is Rs. 2.93 Trillion and that around 97% of MSME’s in India face a working capital crunch. Long credit cycles can adversely affect the cash situation, and an SMB owner must explore financing options to tide over the situation. One such financing solution is the Invoice Discounting Facility.
Put simply, this method of financing is a short-term borrowing that helps in converting the outstanding Invoices that are due, into immediate cash required for running your SME business.
Exercising the option of Invoice Discount Facility
Reviewing your Invoice Discount Facility
- Business Growth
- Fees and other charges
- Change in Business
- Changes in your requirements
- Changing Market conditions
- Other Factors
To sum up
Invoicing Discounting Service Providers offer a variety of options, with different rates and terms. Be sure to do enough research before choosing the one that best meets your needs. When the business scenario changes, you can review the service providers and make a switch as it might help you save a lot of money in the long run.