To ensure a smooth flow of ST Working Capital Requirements, smart businessmen opt for bill or invoice discounting, which is a kind of prepayment of dues against the money that is expected to come in near future. These short-term loans help in keeping the business ball rolling with immediate funding.

Factoring is a disclosed facility. By this, we mean that our customers will be aware that we have purchased the debt and that the debt-customer has to pay us to settle the debt. This is typically disclosed on each and every invoice that the customer submits to our customers. We will speak to your customers and chase your debts as part of our credit management product which forms part of the factoring arrangement.

Invoice discounting is an undisclosed facility. The customers (i.e. on whom the invoice has been drawn) will pay our borrower, although payments will be made into a designated account where the Debit mandate would remain with us. Such designated account number would be mentioned in the underlying Invoices discounted by us.

Improved Cash flow: For most SMEs, payments from existing customers help them to start working on the next set of orders. But when the payment gets delayed, SMEs face trouble as they can’t pressurize the existing customers to pay or else they might lose them, but also can’t forgo newer assignments. In such a scenario, invoice discounting services help small businesses improve cash flow by giving them the capital quickly.

Quick access to cash: The process is faster than other loan options, as invoice discounting provides liquid cash to companies as soon as an invoice is issued. It accelerates cash inflow, helping the borrower spend money on the next project or for business expansion or for repaying outstanding dues, etc.

Reduced collection period: The whole time taken from the delivery of the goods or services to generating the bill and then waiting for the payment and then payment to come out as liquid cash is way too long. Invoice Discounting reduces this collection period. To reiterate, the blocked funds are converted into cash and that too without waiting for the entire credit period.

No collateral required: In most of the cases, no asset (movable or immovable) needs to be put on the line as collateral in discounting process. Only the fee that is deducted from the actual invoice payable is the cost the applicant has to let go.

Business to sell goods on credit: Selling goods on credit means that the customer owes the supplier of goods and services, some money. If customers prefer credit payment, companies can grow their sales if they opt for invoice discounting as they now don’t have to wait for the actual cash payment. The discounting agency will pay them. So, they can allow their next customer the same privilege of taking time to pay the amount.

Trading of Multi-Segment– The first phase involves the borrower or the small business offering a Multi-segment (Greenhat customer) to their Buyer/Anchor

Raising invoice – The borrower then raise invoices for the payments he expects from the Buyer/Anchor to pay within a stipulated period of time that may range from 7 days to 90 days

Discounting of bill – The borrower then approaches Greenhat Kgfs to get the bills discounted, or to get a loan against the invoices raised. The bill is discounted after deducting a small fee and applicable Interest for tenure period. Net Proceeds are remitted to our borrowers’ Current/CC/OD account.

Collection – In this stage, the Buyer/Anchor pay our borrower as per the invoice raised by due date. This way the borrower can repay the loan which is self-liquidating in nature