Who Can Benefit from Invoice Financing?

Invoice financing is suitable for the following types of businesses:

• Companies with long receivables cycles of typically 60-90 days that rely on trade credit and delayed payments from customers. Getting early access to invoice value improves cash flows.
• Businesses facing rapid growth and increased working capital need to fulfil new orders. Invoice financing provides funds without diluting ownership or taking loans.
• Exporters who have to wait for months for payments from overseas clients against shipping documents can bridge liquidity gaps with invoice advances.
• Small and Medium Enterprises (SMEs) and Micro, Small, and Medium Enterprises (MSMEs) with limited access to traditional loans can use invoice financing as an alternative source of funding for growth.
• Startups and early-stage ventures with negative cash flows that need funds to cover operational costs as revenue ramps up.
• Businesses in sectors like manufacturing, textiles, engineering, pharma, FMCG, retail, etc., where credit sales are prominent.
• Companies facing seasonal fluctuations in cash flows due to business cycles can even out cash availability.
• Any business where timely payment from customers is uncertain can leverage this mechanism to ensure smooth functioning.