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 alternative 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 the 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 – the 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 – the cost of borrowing is generally lower than other funding mechanisms
  9. Fast Processing – funds may be released within 3 days of the 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.

 

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