Invoice Discounting for Pharma Industry

The pharmaceutical industry is the cornerstone of the Indian economy, playing a pivotal role in advancing healthcare and yielding substantial revenue. Its significance is underlined by its contribution to fostering innovation, creating life-saving medications, and driving economic growth. However, amidst this booming landscape, the industry struggles with a persistent challenge - managing numerous invoices that accompany its operational skills.

Like other manufacturing sectors, pharma companies engage with an elaborate web of suppliers and vendors, leading to many invoices waiting to be settled. Traditional payment methods often lead to delayed transactions, affecting the smooth functioning of the supply chain and the overall financial fluidity. In these challenges, a practical solution emerges as Bill Discounting, a strategic financial tool.

KredX Bill Discounting offers a streamlined avenue for pharmaceutical companies to ease the hindrance of pending invoices while securing immediate working capital. This financial solution empowers pharma companies to manage various financial obligations seamlessly, from meeting payroll and settling outstanding bills to covering distribution costs efficiently. The access to immediate working capital ensures timely payments and bolsters the robustness of the industry's economic ecosystem.

How Invoice Discounting Supports the Pharmaceutical Sector

Leveraging invoice discounting in the pharmaceutical industry provides several advantages.

Unlocking Funds from Unpaid Invoices

  • Rapid access to working capital within 24-72 hours*.
  • Consistent cash flow without the need for collateral.
  • Utilising outstanding invoices to cover business expenses efficiently.

Operational Improvements

  • Streamlining the supply chain by ensuring continuous access to working capital.
  • Timely management of labor costs, outstanding bills, salaries, distributor charges, etc.
  • Enhanced operational efficiency leading to customer satisfaction.

Business Expansion Opportunities

  • Access to liquidity that fosters business growth.
  • Accelerating cash cycles to accommodate more orders, amplify sales, and broaden distribution networks.
  • Facilitating increased sales and readiness to meet surges in demand.

How Invoice Discounting Works

  1. A pharmaceutical company issues invoices payable within 30-90 days.
  2. Upon successful onboarding and KYC procedures, the company uploads these unpaid invoices onto the KredX platform to secure working capital.
  3. Funds are disbursed into the company's account within 24-72 hours*.

How KredX Can Help Grow Your Business?

One of India's top pharmaceutical firms faced limitations managing daily operations and meeting rising demands, compounded by soaring operational costs and procurement challenges. Traditional financing avenues' lengthy processes hindered accessing necessary working capital swiftly. To counter this, the company turned to KredX's bill discounting platform. Within 24-72 hours, they gained critical working capital, streamlined operations, and expanded their market presence. This strategic shift empowered the company to manage costs, meet market needs, and lay a strong foundation for sustained growth in the competitive pharmaceutical sector.

KredX's Proposed Working Capital Solution

  1. The pharma company generating invoices payable within 60 days approached KredX with unpaid invoices.
  2. These discounted invoices were listed on the KredX platform for a 60-day duration.
  3. KredX investors purchased the invoices as per agreed terms and conditions.
  4. The company received the requisite amount within 24-72 hours.
  5. At the tenure end, KredX investors received the principal invested amount along with earned profits.

Why Choose KredX?

Swift Access to Funds

  • Utilise KredX's innovative bill discounting technology for rapid working capital access.
  • No requirement for collateral.

Competitive Discount Rates

  • List unpaid invoices at market discount rates (~1.2-2%**).

Seamless Process

  • Experience a secure and efficient digital process via the KredX platform.
  • Real-time tracking of invoice statuses.

Documents Required

The following documents are required for the onboarding stage.

Pre-Sanction stage*

  • KYC of the company's directors
  • CIBIL record of directors
  • PAN Card of the company and Address Proof
  • Bank statement for the last 12 months
  • Books of account/audited financials
  • Sales data for the previous one year
  • Loan Declaration

Post-Sanction stage*

  • Board Resolution
  • Post-dated cheque
  • Tripartite undertaking involving KredX
  • Memorandum of Association and Article of Association
  • Personal guarantee letter
  • Articles of association
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