As the foundation of any economy, the essential goods industry comprises key sectors catering to our daily needs. From medications to food items and basic commodities, it plays a crucial part in satisfying the demands of consumers around the globe. Despite its paramount importance, many essential goods companies operating in India often face a significant obstacle - balancing cash flow to sustain day-to-day operations. Maintaining a balance in the supply chain while dealing with the intricacies of deferred payments and prolonged credit terms can get tricky for any business.
According to a recent survey by Atradius, the essential goods industry faces a daunting barrier - delayed payments averaging 33 days. This trend affects the industry's cash flow and also restricts its ability to respond quickly to sudden demands. This dilemma is amplified by the traditional financing modes, which do not offer instant access to working capital. The essence of this industry requires fast capital access, given its constantly changing demand and timely production adjustments. As a solution, Invoice Discounting emerges as a saviour by letting these companies leverage their accounts receivable for on-demand working capital. KredX's invoice discounting solution is a strategic approach that helps businesses manoeuvre through market fluxes, enhance their operations, and seize growth opportunities in the cut-throat market.
Embracing invoice discounting within the essential goods industry yields manifold advantages.
An Indian essential goods company faced multiple obstacles, such as managing increasing demands, high operational costs, and delayed access to working capital through traditional financing methods. To overcome these challenges, the company turned to KredX's bill discounting platform to quickly secure working capital. The results were remarkable, with the company receiving the necessary funds within 24-72 hours*. This allowed for improved efficiency, expanded market reach, and a stronger foothold in the competitive essential goods industry. This strategic decision not only helped the company better manage expenses but also enabled them to meet market demands promptly. It also laid a strong foundation for sustained growth. In the end, KredX's invoicing discounting platform proved to be a game-changer for the essential goods company, providing them with the necessary resources to thrive in a competitive market.
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