Why You Should Consider Selling Your Unpaid Invoices

Small business owners are often plagued with cash flow issues. The primary cause for this is delayed payments way past their payment period. Indian SMEs in general give their customers about 28 days to make payments for services or products delivered. According to the Payment Practices Barometer Asia Pacific 2017 by Atradius, over 96% of these SMEs have reported that, on an average, they receive invoice payments almost 34 days past the due date. This paints a rather grim picture of the payment practices in the country. This total takes the total delay in payment to a whopping 62 days. This impacts their operational capacity, hindering business growth due to a lack of financial reserves to take on new orders, thus threatening their very survival.

However, there is a way to avoid risking your cash flow and access working capital without applying for loans. You can choose to sell your accounts receivable or unpaid invoices to finance your business by opting for one of the following methods:

Invoice factoring: The business sells their unpaid invoice to a third party wherein, it becomes the third party’s responsibility to maintain the sales ledger, credit control and collect the payment from the customer to whom the business had delivered services or goods to.

Invoice discounting: This is a form of short-term borrowing that allows a business to draw money against its sales invoices before the customer has actually paid. It has zero-collateral requirement as the benefit is transferred between the parties solely on the basis of invoices for already-delivered services/products. In bill discounting, the business sells their unpaid receivables to a third party but retains control of their ledger, books and collects payment from the customer themselves.

Benefits of selling your accounts receivables

  • Quick processing in a couple of days
  • Hassle-free, online process as with KredX’s invoice discounting marketplace
  • No collateral required (the invoice serves as a pseudo-collateral or an assurance of payment)
  • Since the funds are availed using invoices, it does not impact your balance sheet and hence, no debt.
  • Caters to all business segments, even ones that don’t have access to business loans.
  • Cost-effective facility ensuring businesses earn significant profit margins and see a growth in their revenue
  • Faster cash cycles thereby, accelerating business growth

With over 56% of small businesses in India facing working capital issues due to unavailability of credit or late payment, KredX aims at addressing these obvious gaps. KredX – India’s leading invoice discounting marketplace, makes working capital easily available to SMEs in 24-72 hours as opposed to a traditional payment tenure of 30-90 days by selling their unpaid invoices to our network of investors while providing these investors with lucrative returns at minimal risk. This ensures a healthy cash flow and subsequent business growth.

If you would like to learn more about KredX, you can watch the video here or please write to us at info@kredx.com for more details.

Please follow and like us:


  1. Simon AndersanFebruary 2, 2018 at 9:19 am 

    May indulgence difficulty ham can put especially. Bringing remember for supplied her why was confined. Middleton principle did she procuring extensive believing add.

  2. Mark JohnsonFebruary 2, 2018 at 9:20 am 

    May indulgence difficulty ham can put especially. Bringing remember for supplied her why was confined. Middleton principle did she procuring extensive believing add.

  3. Coni KerginanFebruary 2, 2018 at 9:23 am 

    Weather adapted prepare oh is calling. These wrong of he which there smile to my front. He fruit oh enjoy it of whose table.

Leave a Reply

Your email address will not be published.