Invoice Discounting Investment India: A Guide to Falcon Invoice Discounting Introduction:
Invoice discounting is a type of financing that allows businesses to access cash flow in advance of receiving payments from their customers. It is a short-term financing solution that can be used to meet working capital needs, such as paying suppliers, employees, and other expenses.
Invoice discounting is a relatively new concept in India, but it is quickly gaining popularity as a viable alternative to traditional bank loans. It is particularly attractive to small and medium-sized enterprises (SMEs), which often have difficulty accessing traditional bank financing.
One of the leading invoice discounting platforms in India is Falcon Invoice Discounting. Falcon is a peer-to-peer (P2P) invoice discounting platform that connects businesses with investors. Businesses can upload their invoices to the Falcon platform and receive cash advances within a few hours. Investors can earn attractive returns by investing in invoices that have been verified by Falcon.
How Invoice Discounting Works
Invoice discounting is a simple and straightforward process. It typically involves the following steps:
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The business issues an invoice to its customer for goods or services provided. The business uploads the invoice to the Falcon platform. Falcon verifies the invoice and the customer's creditworthiness. Falcon advances the business a percentage of the invoice amount, typically between 70% and 90%. The customer pays Falcon directly when the invoice is due. Falcon deducts its fees and pays the remaining balance to the business.
Benefits of Invoice Discounting
Invoice discounting offers a number of benefits to businesses, including:
Quick access to cash: Businesses can receive cash advances within a few hours of uploading their invoices to the Falcon platform. Flexible financing: Businesses can discount any number of invoices, regardless of size or industry. No collateral required: Invoice discounting is a secured loan, so businesses do not need to provide any collateral.