Receivables · buyer quality first
Invoice / Bill Discounting
Cash against receivables
Cash against invoices your buyers already owe — if those buyers are names credit will take. A long tail of kirana debtors is not this product.
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Indicative ticket
₹5 Lakh – ₹3 Crore+
Tenure
Aligned to invoice tenor, often 30–120 days
Security
Assignment of receivables; additional security if asked
Category
Working capital
Working capital
Unlock receivables: discount accepted bills or invoices of creditworthy buyers.
Discount accepted invoices or bills so you are not waiting 45–90 days on buyers. Works best with creditworthy debtors and a clear GST trail.
Overview
Invoice discounting is not a general personal overdraft. The lender looks at who owes you money. Government, PSU, large corporate or well-rated buyers are easier than a long tail of small retailers.
It can sit as a separate line or as part of a WC package. Concentration risk (one buyer = most of sales) is a common credit question — we flag it early.
What this facility offers
- Liquidity against eligible receivables
- Useful when buyers are stronger than the MSME supplier
- Can reduce pressure to take costly unsecured loans
Who owes you money is the underwriting
PSU, large corporate and well-rated buyers discount. Related-party ‘buyers’ and disputed bills do not. Concentration on one group company is a strength only if that company is independent and large.
GST trail of the invoice
E-invoice, e-way bill and GSTR should tell the same story as the bill you want discounted. Credit will sample. A parallel cash book will not save a weak buyer list.
Recourse, dilution and concentration
Most MSME invoice lines are with recourse: if the buyer delays, you still owe. Credit notes, returns and disputed lots are dilution — they shrink what can be lodged. One buyer at 80% of the book is a strength only if that buyer is independent and large.
Assignment of receivables and a notice to the buyer are operational, not fine print. If you cannot tell the buyer the invoice is assigned, this may not be the product — it may be a CC against book debts with a quieter hypothecation.
Unlike CC, the limit is lodgement-based, not a standing godown DP. Unlike SCF, you may not need an official dealer code. Unlike unsecured term, tenor follows the invoice, not seven years.
Will not discount
- Retail walk-in debtors
- Personal OD
- Discounting your own sister-concern bills as an anchor
Buyer, dilution and assignment
- Ageing and buyer names
- Disputes and credit notes
- Assignment of receivables
Bills that a named buyer already owes
- Supply to corporates/PSUs
- Seasonal receivable spikes
Suppliers to PSU / large corporate books
- B2B manufacturers and traders with quality receivables
Buyer-quality tests
- B2B sales with traceable invoices
- Acceptable buyer portfolio
- GST and banking that match invoice trails
Invoice, e-way, GST and ageing — together
- Invoices, POs, e-way bills as applicable
- Buyer list and ageing
- KYC, GST, banking of the MSME
Lodgement, not a standing godown DP
Typical desk timeline: 2–4 weeks after buyer mapping
- 1
Login and share your brief
Create your MSME desk account or log in. Tell us city, Udyam band, turnover range and the purpose of funds in one clear sentence. Consent is recorded before any lender share.
- 2
Map buyers and invoice ageing
Corporate, PSU and rated buyers vs long tail of small retailers. Disputed and overdue invoices are excluded upfront.
- 3
Invoice discounting vs CC choice
Clean receivables from strong buyers → ID line. General stock and mixed debtors → cash credit is often the better structure.
- 4
Document checklist and vault upload
Promoter KYC, Udyam, GST, banking and purpose papers are listed product-wise. You upload once to the vault; we tell you what is missing before the file goes to credit.
- 5
Lender login and credit processing
The file moves to a partner bank, NBFC or HFC that matches your profile. Queries on GST vs banking, end-use or security are coordinated with you — we do not promise sanction from this website.
- 6
Sanction letter and agreement
If approved, you receive the lender’s sanction with rate, tenure, security and covenants in writing. Read processing, insurance and prepayment clauses before signing — they vary by institution.
- 7
Limit setup and lodgement process
You learn how invoices are lodged, financed and repaid when the buyer pays. Recourse terms are read before first lodgement.
Ready to start?
Quick apply for Invoice / Bill Discounting without creating an account — or login if you want vault KYC and status tracking on your desk.
Receivables-finance questions
Will every invoice be financed?+–
No. Ineligible buyers, disputed bills and overdue invoices are usually excluded.
SCF and packing credit are not this book
- Working Capital LoanShort-term and revolving funds so stock, payroll, GST and suppliers do not wait on collections.
- Cash Credit (CC)A revolving MSME limit against stock and receivables — draw, repay, draw again within drawing power.
- Business Overdraft (OD)Overdraft on the current account for MSMEs that need flexible, interest-on-usage liquidity.
Figures are indicative. Not an offer. Sanction, rate and security rest with the bank, NBFC or HFC. Scheme names are not a website promise.
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