Logistics Financing

Logistics Financing- Invoice Discounting

Logistics & Transportation as an Industry plays a major role in the Economic development of a country. Its value at the Micro level is substantial. Indian Logistics Industry is expected to grow at a CAGR of 8.6 percent between 2015 and 2020, which grew at a CAGR of 9.7 percent during 2010-2015. The Industry is fragmented & Under-developed. Lack of proper infrastructure, tax structures, fluctuating fuel costs, etc are major woes that the industry faces.

Logistics is not confined to manufacturing set up alone; it is relevant to all enterprises like government, schools & service industries like retail, financial services etc. The dependency on all major factors of human, financial, Technology & natural calamities is what makes it complex as well as important.

Invoice Discounting

Invoice Discounting is an alternate finance solution for businesses to unleash the power of these Invoices.

In essence, it means you can sell your invoice at a discount and use that money for the smooth functioning of your business operations.

Invoice Discounting in Logistics Industry

Invoice discounting can help fund the Logistics & Transportation industry by freeing up cash sitting in unpaid invoices. The dependency on unpredictable and fluctuating factors makes it all the more necessary for organizations to have a strong cash flow system.  Factors like increased competition, tighter margins, longer & delayed payment cycle, payment defaults only add on to the many challenges that one could face.

Invoice Discounting has many benefits, a few of them as listed below.

  1. Release cash tied up immediately rather than wait for 30/60/90 days
  2. Have steady cash flow to pay for important expenses like wages, fuel & operations
  3. Help Organizations focus on the business & its day to day activities
  4. This funding facility will help the organizations grow the business rather than move more into debt by O/D or loan options
  5. Businesses can get more customers on board by granting credit terms and not feel the pinch of slow paying Invoices

How can Kredx Help

  1. Liquidity – businesses get upfront access to capital rather than waiting for 60-120 days for the payments from large corporate
  2. Scalability – amount of funding is dependent upon the creditworthiness of the business and therefore can grow with the business
  3. Flexibility – no contractual obligation to use KredX for all/any financing needs. Businesses can come and go as they like
  4. Transparency – No hidden or opaque fee structure. Simple fee structure which is pre-determined at the time of funding
  5. Control – Businesses will have complete control of managing their relationships with their client
  6. Less Documentation – once registration is completed. Future documentation requirement is very minimal. No collateral or bank guarantees are required
  7. Accountability – businesses have the ability to maintain control of their financing options
  8. Low Cost – cost of borrowing is generally lower than other funding mechanisms
  9. Fast Processing – funds may be released within 3 days of request
  10. Non-Disclosure – businesses debtor facility may be kept confidential
  11. Data Security – all data is secured and is not shared inappropriately
  12. Convenience – easy and seamless process from onboarding to funding to payments
  13. Customer Service – dedicated relationship managers for all your concerns

KredX– India’s Leading Invoice Discounting Marketplace, Provides a Unique Unified Platform to help businesses grow.

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