Do you require quick access to money and are wondering what bill discounting is? Invoice Trades is here to simplify it for you.
When there are unpaid invoices that have been scheduled to pay later, bill discounting has a solution for it. The process of bill discounting is selling unpaid invoices to a buyer who will then make the payment of the invoice. However, when the business is selling their invoice, they do so with a discount. The whole reason businesses opt for this decision is to gain access to short-term financial assistance. If the business requires working capital and wants to speed up the cash flow, this is one of the best options.
To make it clearer, we'll give you an example:
Suppose Business 1 sells goods worth Rs. 1,00,000 to Business 2, Business 1 will issue an invoice to Business 2 at a later date. Business 1 knows that Business 2 will be paying their invoice but they require cash immediately. What Business 1 does, is sells the invoice they have given to Business 2 to Invoice Trades, at a discounted price. Business 1 agrees to a 15% discount and Invoice Trades will pay them Rs. 97,500.
Of course, bill discounting will not give you a profit and won't even give you the entire amount of the invoice, but it is the best way to get cash inflow instantly. Suppose a business is looking for cash to fund a business expenditure, pay their employees, or order more inventory, bill discounting may seem worth their loss.
It's not all a loss. There are a lot of benefits to bill discounting too. They are as follows:
If you think bill discounting works for your business, then it is time that you hop on Invoice Trades and get on the path to business growth!
