Businesses often raise bills or invoices against completed supplies or services, while the actual customer payment may be received at a later date. This timing difference can create a working capital requirement.
Bill Discounting is a financing approach that may allow eligible businesses to obtain funding against qualifying bills or receivables before the underlying payment becomes due, subject to the applicable financing structure.
KratuFin helps businesses understand their receivable-based funding requirement and explore applicable financing possibilities based on their transaction, financial profile, documentation and eligibility.
Appropriate bill discounting arrangements may help eligible businesses manage the gap between raising a bill and receiving customer payment.
Discuss Your RequirementBill discounting is linked to an underlying commercial transaction and eligible receivable. The exact financing structure depends on the transaction and financing institution.
The business raises an eligible bill or invoice against a completed supply or service.
The transaction, bill, business profile and applicable documentation are assessed.
Where approved, financing may be provided against the eligible bill under the applicable structure.
The underlying customer payment is realised according to the applicable commercial arrangement.
Depending on the transaction, eligibility and financing structure, bill discounting may help businesses manage receivable cycles and short-term liquidity requirements.
Appropriate financing may help eligible businesses manage cash flow before outstanding bills are settled by customers.
Businesses may be able to manage customer credit periods and receivable timelines more efficiently.
Financing may help bridge the period between bill generation and actual customer payment.
Better access to working capital may support regular operating and transaction cycles.
Suitable receivable financing may provide additional flexibility as transaction volumes increase.
Businesses may use appropriate financing structures to manage eligible receivables more effectively.
Bill Discounting may be relevant for businesses that generate identifiable receivables from genuine commercial transactions.
Suitability depends on factors such as the nature of the bill, customer or debtor profile, business financials, transaction history, documentation and the applicable criteria of the financing institution.
Businesses with identifiable bills or invoices arising from genuine transactions.
Businesses with identifiable customers and established commercial relationships.
Businesses operating with identifiable customer payment timelines.
Businesses seeking to manage working capital around eligible outstanding receivables.
We first understand the underlying transaction and receivable before exploring applicable financing possibilities.
Understand the bill, transaction, customer and business funding requirement.
Consider documentation, financial profile, transaction and applicable requirements.
Explore financing possibilities that may suit the underlying receivable requirement.
Proceed with the applicable institution's assessment and approval process.
Share your requirement with KratuFin and explore whether bill discounting may be relevant to your business.
Bill Discounting is subject to applicable eligibility criteria, documentation, verification of the underlying transaction and bill, credit assessment and terms of the respective financing institution. Availability, pricing, tenure and approval may vary based on the applicant, transaction, debtor profile and other applicable factors.