Is your money stuck in invoices? Get quick disbursal in 24 hours!
Documents Required
- Current invoice or Purchase Order
- Top 10 Customers and their yearly sales
- Bank Account statements of last 2 years
- Monthly GST returns of the previous 2 years
- KYC Documents of the borrower
- Audited Financials and ITR returns for 2 years
- Sales ledger for last 1 year
- Collateral sale deed (for secured lending)
Red Fort Capital's Philosophy
Trustworthy Individuals
With high integrity and the intention and capacity to reimburse us.
Reliable Companies
Businesses with clear and consistent cash flows.
Reliable Buyers
Long and stable relationship with buyer improves approval rates
What is Invoice Discounting/ Receivable Financing?
A small business in India needs to critically manage its cashflows. A sufficient buffer in cashflows can ensure that small businesses can thrive in uncertain times. Invoice discounting also known as receivable financing or sales bill discounting, is a very short-term working capital financing vehicle. It allows small businesses to leverage their outstanding invoices to secure cash flow by taking loan against these invoices. It provides instant liquidity to cover their operational expenses, gear up for an upcoming sales season or any other expenses.
The Benefits of Invoice Discounting
Improved Cash Flow: One of the most significant advantages of invoice discounting is the immediate infusion of cash into your business. Rather than waiting for payment, you receive a sizeable portion of the invoice value upfront, helping you maintain a healthy cash flow to meet your day-to-day financial commitments.
Working Capital Flexibility: Invoice discounting gives you the flexibility to manage your working capital efficiently. You can access funds when needed, whether it is to cover payroll, invest in inventory, or take advantage of supplier discounts for early payments.
Quick Access to Funds: Traditional financing methods can be time-consuming and involve extensive paperwork. Invoice discounting, on the other hand, offers a streamlined process. You can often get approval and access funds faster, allowing you to respond quickly to emerging business needs.
Maintaining Customer Relationships: Invoice discounting is a confidential financing method, which means your customers may not even be aware of it. You maintain control over your customer relationships and collection processes, preserving your business’s reputation.
Scalability: As your business grows, so do your financing needs. Invoice discounting is a scalable solution. The more invoices you generate, the more funds you can access, making it an ideal choice for businesses on a growth trajectory.
| Ticket Size | 20 Lakhs to 1 Crore (Unsecured), Up to 3 Crore (Secured) | Invoice Tenure | 30 to 90 days |
| Interest Rate | 1.5% per month onwards | Discount Rate | Up to 90% of the invoice value |
| Disbursement Time | Less than 24 Hours | Borrower Rating | Cibil score > 700 |
Invoice Tenure30 to 90 days
| Ticket Size | 20L to 1 Cr Unsecured Upto 3 Cr Secured |
| Interest Rate | 1.5%/month onwards |
| Discount Rate | Upto 90% of the invoice value |
| Disbursement Time | Less than 24 Hours |
| Borrower Rating | Cibil score > 700 |
Is Invoice Discounting Right for Your Business?
Invoice discounting can benefit a wide range of businesses, particularly those that deal with B2B transactions and have outstanding invoices. It’s an excellent choice if:
- Your business experiences seasonal fluctuations in cash flow.
- You want to take advantage of growth opportunities without waiting for customer payments.
- You need more certainty in your business cashflows. It ensures smooth business operations.
- You prefer a financing solution that doesn’t require collateral.
We understand the complex business relations, the urgency of funds to satisfy short-term obligations, and provide customized service as an invoice discounting facility to assist small businesses like yours with their short-term requirements. We are committed to providing our customers with the best possible service and support. Our staff of experts is always accessible to address your concerns and maximize the utility of our invoice discounting facility. Contact us immediately to find out how we can assist you in achieving your goals.
How Invoice Discounting Works?
Invoice Generation
You provide goods or services to your customers and issue invoices as usual.
Invoice Submission
You submit the invoices to an invoice discounting service provider or financial institution.
Loan Approval
The provider evaluates the invoices and approves a certain percentage of their total value for immediate funding.
Loan Disbursal
You receive the approved funds, typically within 24 to 48 hours, which you can use to meet your business needs.
Repayment
Within the stipulated duration, whenever your customers clear the bills, the lenders deduct their share and return you the remaining amount.
FAQs
What is the eligibility criteria for invoice discounting?
If the borrower is receiving payments from his buyer on a timely basis, he will be eligible for invoice discounting. Eligibility is also accessed by financial stability and creditworthiness
Which sector’s invoices are discounted?
All sectors except construction and education are eligible for invoice discounting
Borrower Testimonials
“Thanks to Red Fort Capital, we were able to expand our presence in the global market with their quick funding process. With their support, we can offer our innovative alkaline black water to a wider audience and promote healthy living.”
“Red Fort Capital has amazed us with the 100 million INR disbursement within a record time of 8 days. With the speed capital provided by Red Fort Capital, we will be able to capitalize on time-sensitive opportunities and grow further.”
“With Red Fort Capital’s support, we have been able to procure raw materials and meet the specific needs of our valued clients. We are grateful for their trust and partnership helping us expand our market share throughout Maharashtra.”
"I needed funds to further expand my business and Red Fort Capital stood strong on their promise of speed and value creation. They understood the requirements of my business and were extremely transparent throughout the loan process."
"We’re truly amazed by the speed and enthusiasm with which Red Fort Capital disbursed the loan in a record time of 7 days and helped us capitalize on time-sensitive opportunities."
"It will help us to enhance our medical infrastructure, expand our specialties and services, and meet the growing demand for quality healthcare in the region".
