According to the latest data, the Indian automobile industry is the 5th largest in the world, as of 2019. In terms of commercial vehicles, it stood at the seventh position. The automobile industry has always been one of the key economic drivers of India, and even more so over the past decade. A general increase in median income of consumers and exposure to better standards of living has prompted a boost in the sales figures in this industry tremendously.
1) What Is Invoice Discounting For An Automobile Industry?
2) What is the Process To Avail Invoice Discounting Service for the Automobile Industry?
3) How Can An Automobile Business Benefit From Invoice Discounting?
4) What Are The Eligibility Criteria For Invoice Discounting For an Automobile Industry?
5) What Are The Documents Required For An Automobile Industry?
And while this industry demonstrates immense potential, as a whole, businesses individually come across several financial stonewalls. One of these hurdles is clearing unpaid invoices to finance its day-to-day activities. In that regard, invoice discounting for automobile business can be a pecuniary boon.
With such financing option, businesses can optimise their cash flow and provide for different operational costs without hassle. However, before opting for this financing option, companies must familiarise with their various features.
In the course of running a business, an automobile-based enterprise generates numerous invoices against its credit sales, which its clients pay on a later date. That period can vary from 30 – 90 days. In due course, thus, the funds remain tied up. And while so, a business might need to attend to a financial emergency, like paying rent, or make up for a cash-flow deficit.
That’s where bill discounting for Automobile business comes into the picture. An enterprise can leverage its unpaid bills with a financial institution to secure cash advance against their value. It allows businesses to release the tied up funds before the due date of corresponding invoices. Since the finances availed via invoice discounting do not entail any end-use restriction, companies can utilise it to whatever end it prefers.
Also, with KredX, businesses can avail cash advance against their unpaid invoices within 24 – 72 hours*. That way, businesses can address any financial emergency sans delay.
Invoice discounting for automobiles offered by KredX usually constitutes the following steps –
Working capital is one of the most crucial building blocks of growth for any automobile organisation, be it large or small. Thus, ensuring its proper management is quintessential. One variable that can boost this factor immensely is early access to funds.
Businesses can utilise funds availed by discounting their unpaid bills to cover several different expenses. It can be used to pay salary to employees, settle rent, take up additional orders, etc.
In a market of cutthroat competition, it is of utmost importance for automobile organisations to maintain a firmer financial footing. One way to ensure that is through bill discounting for automobiles.
With this financing service, a business can finance its operations more efficiently and further its profit and growth objectives with greater pace. Enterprises can boost their cash cycles and take on additional sales without qualms.
One of the key features that distinguish this financing option is expediency. Invoice discounting involves minimal formalities, and hence, disbursal of cash advance is faster compared to traditional financing facilities. With such liquidity, business can address any financial emergency with ease. It also improves the overall cash flow of a business.
An enterprise should satisfy the following criteria to avail of this financing service –
The documents one needs to submit when applying for invoice discounting service are –
Once the business is approved, they need to to furnish these documents –
Note that this list is not definitive. Apart from these companies may also need to submit other documents.
Invoice discounting for the automobile industry is one of the most convenient financing options for companies. Businesses can optimise their working capital by discounting their unpaid invoices with KredX without hassle and ensure there’s sufficient cash flow to address all forms of financial obligations.
A. No, with KredX, businesses do not need to collateralise any asset to avail a cash advance. They simply need to submit their unpaid invoices to that end.
A. Bill discounting does not involve any upper limit on the amount to be sanctioned. It depends on the value of invoices and eligibility criteria satisfied.
A. Invoices usually carry a payment period of 30 – 90 days from the date of bill generation. Therefore, bill discounting service also comes with a tenure of 30 – 90 days.
A. KredX disburses funds against invoices within 24 – 72 hours* of approval. Generally, application for bill discounting for automobiles is approved within 1 – 2 days.