Invoice Financing

1. Invoice Financing: The Untold Secret to Unlock Your Business Potential Invoice financing has become increasingly popular in recent times due to its advantages such as quick access to funding without the need for collateral and a hassle-free application process. It accounts for 10% of total credits from financial institutions, making it an effective solution for businesses facing working capital deficits. Falcon, one of the leading invoice financing companies in India, has simplified the process of obtaining funds even further. What exactly is invoice financing? In India, it refers to a method through which businesses can receive advances against their outstanding invoices from customers. In return, they pay a fee to their lender based on a percentage of the total invoice amount. By utilizing this financing method, businesses can meet their short-term liquidity needs by obtaining a portion of the value of their unpaid invoices as a loan. These unpaid invoices are known as accounts receivables and allow businesses to receive the agreed-upon amount at a later date. By accessing funds through invoice financing, businesses can improve their cash flow, invest in operations to drive growth, pay suppliers and employees, and fulfill various other financial requirements. It eliminates the need to wait for customers to settle bills and provides readily available funding options. This is why many businesses find invoice financing an attractive form of funding. According to a customer questionnaire conducted recently, 22% of respondents preferred bill financing as a convenient mode of instant funding. Now let's take a closer look at how invoice financing works: Before opting for this type of finance option, it's essential to understand how the entire funding process is carried out: Businesses generate an invoice and send it to their chosen financier. The financier reviews the invoice and disburses a percentage of its value as a loan within 24-72 hours (timing may vary depending on the lender). The business then waits for the customer to settle the outstanding invoice amount. If payment is not received, business owners can pursue the payment themselves or have the financier handle it as per their agreement. Once the customer settles the invoice, businesses receive the remaining percentage of its value, minus the service fee charged by the financier. Invoice financing enables businesses to unlock capital that would otherwise be tied up in unpaid invoices.

2. There are two types of invoice financing available for business owners: invoice factoring and invoice discounting. Invoice factoring involves selling unpaid invoices to a third-party factoring company. The factoring company purchases these invoices for a certain percentage of their total value and takes on the responsibility of collecting payments from customers. On the other hand, invoice discounting is a more confidential process where customers are unaware that their unpaid invoices are being used to raise funds. In this case, businesses retain control over their sales ledger and are responsible for collecting outstanding amounts from customers. Regardless of whether one chooses invoice factoring or discounting, this form of financing allows businesses to access up to three times more cash compared to other financing options. The Indian market has seen a rise in the number of invoice financing companies in recent years. One prominent player in this space is Falcon Invoice Discounting, which serves as India's leading marketplace for invoice discounting. They provide working capital to businesses by offering funds against uncertain invoices, all while maintaining complete transparency with their terms and conditions. Best Invoice Financing Company In India: Through Falcon Invoice Discounting platform, business owners can easily opt for invoice discounting and receive instant funds based on the value of their invoices. Here's a breakdown of how the process works: The customer generates an invoice with a typical payment period ranging from 30 to 90 days. After signing up, the customer uploads the invoice onto our portal. Once approved, the loan amount equivalent to the invoice value is disbursed into the customer's account within 24-72 hours*. At the end of the agreed tenure, when the customer settles their dues, the external investor receives their payment. This streamlined process enables businesses to access funds quickly and address their financial needs effortlessly. With readily available working capital, businesses no longer have to face delays in receiving regular funds and can maintain a steady cash flow. Conclusion invoice financing serves as a vital lifeline for businesses in India by transforming unpaid invoices into immediate working capital. This financial tool comes in various forms such as invoice factoring and discounting, allowing companies to boost liquidity and drive growth without having to wait for customer payments.Falcon simplifies this process and makes it accessible for businesses looking to effectively manage their cash flow. Whether it's maintaining operations or investing in growth or managing expenses, invoice financing offers strategic solutions that cater

3. to diverse business needs while ensuring financial stability and adaptability within today's dynamic economic landscape