Invoice Financing

Convert unpaid invoices into working capital to keep your business running smoothly. Get instant cash flow without waiting for customer payments.

₹1L - ₹10Cr

Financing Amount

12% - 18%

Interest Rate

24-48 Hours

Processing Time

What is Invoice Financing?

Invoice financing, also known as invoice factoring or accounts receivable financing, is a financial solution that allows businesses to convert their unpaid invoices into immediate cash. Instead of waiting 30-90 days for customer payments, you can access funds within 24-48 hours.

This financing method is particularly beneficial for businesses with long payment cycles, seasonal fluctuations, or those looking to accelerate growth without being constrained by outstanding receivables. It provides immediate working capital while reducing collection risks and administrative burden.

0

% Invoice Value

0

Hours Processing

0

Days Credit Period

Invoice Management

How Invoice Financing Works

Simple 4-step process to convert your invoices into instant cash flow

1
Submit Invoices

Submit your verified invoices from creditworthy customers for financing approval.

2
Credit Assessment

We assess your customer's creditworthiness and approve financing within hours.

3
Instant Funding

Receive 80-85% of invoice value immediately in your bank account.

4
Collection & Settlement

We handle collections and settle the remaining amount after customer payment.

Benefits of Invoice Financing

Key advantages that make invoice financing essential for cash flow management

Instant Cash Flow

Get immediate access to cash tied up in unpaid invoices, improving your working capital and operational efficiency.

Reduced Collection Risk

Transfer collection risks to the financing company, protecting your business from bad debts and payment delays.

Accelerated Growth

Use immediate funds to take on larger orders, invest in inventory, or expand operations without waiting for payments.

No Waiting Period

Eliminate the 30-90 day waiting period for customer payments and maintain steady cash flow for operations.

Professional Collections

Benefit from professional collection services while maintaining good customer relationships through proper communication.

Flexible Financing

Choose which invoices to finance based on your cash flow needs, with no long-term commitments or fixed loan amounts.

Types of Invoice Financing Solutions

Choose the right invoice financing option based on your business needs

Invoice Factoring

Sell your invoices for immediate cash

  • Sell invoices outright to factor
  • Get 80-85% advance immediately
  • Factor handles all collections
  • No recourse on bad debts
  • Suitable for high-volume businesses
  • Ongoing relationship with factor
80-85%
Advance Rate
1-3%
Factor Fee

Invoice Discounting

Borrow against invoice value

  • Borrow against invoice value
  • Retain control of sales ledger
  • Handle your own collections
  • Maintain customer relationships
  • Confidential financing option
  • Lower cost than factoring
75-80%
Advance Rate
12-18%
Interest Rate

Selective Invoice Financing

Finance specific invoices as needed

  • Choose specific invoices to finance
  • No minimum volume requirements
  • Pay only for what you use
  • Ideal for occasional needs
  • Quick approval process
  • Flexible terms and conditions
70-80%
Advance Rate
2-4%
Service Fee

Invoice Credit Line

Revolving credit against receivables

  • Revolving credit facility
  • Draw funds as needed
  • Pay interest only on usage
  • Automatic replenishment
  • Ongoing credit availability
  • Suitable for regular financing
Up to 80%
Credit Limit
14-20%
Interest Rate

Industries We Serve

Invoice financing solutions across diverse business sectors

Manufacturing

Raw materials, finished goods, B2B suppliers

Distribution

Wholesalers, distributors, trading companies

IT Services

Software development, consulting, outsourcing

Construction

Contractors, suppliers, engineering services

Textiles

Garment manufacturers, fabric suppliers

Logistics

Transportation, freight, supply chain

Food & Beverage

Processors, distributors, suppliers

Export/Import

International trade, exporters, importers

Invoice Financing Eligibility Criteria

Simple requirements to qualify for invoice financing solutions

Business Eligibility
  • Business operational for minimum 1-2 years
  • Annual turnover of ₹50 lakhs to ₹100+ crores
  • Regular invoicing to creditworthy customers
  • Good business credit history
  • Registered business entity (all types accepted)
  • B2B business model preferred
  • Consistent cash flow patterns
Invoice Eligibility
  • Invoices to creditworthy customers
  • Invoice value: ₹50,000 to ₹1 crore each
  • Payment terms: 30-90 days
  • Verified delivery of goods/services
  • No disputes or quality issues
  • Proper invoice documentation
  • Customer acceptance confirmation
Customer Eligibility
  • Established companies with good credit rating
  • Government departments and PSUs
  • Large corporates and MNCs
  • Listed companies preferred
  • No history of payment defaults
  • Strong financial position
  • Regular payment track record
  • Acceptable credit score/rating

Documents Required for Invoice Financing

Essential documents needed for quick processing and approval

Business Documents
  • Business Registration Certificate
  • GST Registration
  • PAN Card
  • Partnership Deed/MOA-AOA
  • Trade License
  • MSME Certificate
  • Board Resolution
Financial Documents
  • Last 2 years Audited Financials
  • Last 12 months Bank Statements
  • GST Returns (last 12 months)
  • Income Tax Returns
  • Management Accounts
  • Cash Flow Statements
  • Debtor Aging Report
Invoice Documents
  • Original Tax Invoices
  • Delivery Challan/Receipt
  • Purchase Orders
  • Work Completion Certificates
  • Customer Acceptance
  • Transport Documents
  • Quality Certificates
Customer Documents
  • Customer Credit Reports
  • Customer Financial Statements
  • Payment History Records
  • Customer Profile Information
  • Credit Rating Reports
  • Trade References
  • Customer Agreements

Invoice Financing Application Process

Streamlined 6-step process for quick invoice financing approval

1
Application

Submit application with business and invoice details

2
Verification

Document verification and business assessment

3
Customer Check

Customer creditworthiness and payment history review

4
Approval

Credit approval and financing terms finalization

5
Agreement

Financing agreement and legal documentation

6
Funding

Immediate fund transfer to your account

Invoice Financing Features & Benefits

Comprehensive features designed to optimize your cash flow management

Quick Processing

Get funds within 24-48 hours of invoice submission with minimal documentation and fast approval process.

Competitive Rates

Attractive financing rates starting from 12% per annum with transparent pricing and no hidden charges.

Revolving Facility

Ongoing credit line that replenishes automatically as invoices are paid, providing continuous access to funds.

Credit Protection

Optional credit insurance to protect against customer defaults and bad debts, ensuring peace of mind.

Portfolio Management

Professional management of your receivables portfolio with detailed reporting and analytics.

Digital Platform

Online platform for invoice submission, tracking, and management with real-time status updates.

Invoice Financing Cost Structure

Transparent pricing with no hidden charges or surprise fees

Interest/Discount Charges
Invoice Factoring: 1-3% per month
Invoice Discounting: 12-18% per annum
Selective Financing: 2-4% per transaction
Credit Line: 14-20% per annum
Processing & Service Charges
Processing Fee: 0.5-1% of limit
Verification Charges: ₹500-₹2,000
Documentation: ₹1,000-₹5,000
Collection Charges: 0.25-0.5% of invoice
Important Notes:
  • Rates vary based on customer creditworthiness, invoice value, and payment terms
  • Volume discounts available for regular customers
  • No prepayment penalties or hidden charges
  • Competitive rates compared to traditional working capital loans

Invoice Financing Calculator

Calculate your financing cost and cash flow benefits

₹10,00,000
80%
2%
60 Days

₹8,00,000

Advance Amount

₹32,000

Financing Cost

₹7,68,000

Net Amount

24%

Effective Rate (p.a.)

Apply for Invoice Financing

Invoice Financing vs Traditional Working Capital Loans

Compare invoice financing with conventional financing options

Criteria Invoice Financing Working Capital Loan Overdraft Facility
Processing Time 24-48 hours 10-20 days 15-30 days
Collateral Required Invoices only Property/Assets Property/FD
Credit Assessment Customer's creditworthiness Your business credit Your business credit
Funding Amount 80-85% of invoice value Up to ₹10 crores Based on turnover
Repayment Customer payment cycle Fixed EMI schedule Revolving facility
Collection Risk Transferred to financier Remains with business Remains with business
Documentation Minimal Extensive Moderate
When to Choose Invoice Financing:

Choose Invoice Financing when you have creditworthy customers with payment delays, need immediate cash flow, and want to transfer collection risks. It's ideal for businesses with strong sales but cash flow challenges due to extended payment terms.

Risk Management in Invoice Financing

Comprehensive risk assessment and mitigation strategies

Potential Risks
  • Customer Default: Risk of customer not paying invoices
  • Dispute Risk: Quality issues or delivery disputes
  • Concentration Risk: Over-dependence on few customers
  • Dilution Risk: Credits, returns, or adjustments
  • Fraud Risk: Fictitious or inflated invoices
  • Currency Risk: For export invoice financing
Risk Mitigation
  • Credit Assessment: Thorough customer credit evaluation
  • Credit Insurance: Protection against customer defaults
  • Portfolio Diversification: Spread across multiple customers
  • Invoice Verification: Detailed invoice and delivery verification
  • Legal Documentation: Proper assignment and notification
  • Monitoring Systems: Continuous portfolio monitoring
Our Risk Assessment Process
Customer Analysis

Credit reports, financial analysis, payment history review

Invoice Verification

Document authenticity, delivery confirmation, acceptance verification

Portfolio Review

Concentration analysis, diversification assessment, exposure limits

Ongoing Monitoring

Regular updates, payment tracking, early warning systems

Frequently Asked Questions

Common queries about invoice financing and factoring solutions

In invoice factoring, you sell your invoices to the factor who takes over collections and customer relationships. In invoice discounting, you borrow against invoice value while retaining control of collections and maintaining direct customer relationships. Factoring is more hands-off while discounting gives you more control.

Once your facility is approved and invoices are verified, funds can be released within 24-48 hours. For first-time applications, the setup process may take 3-5 working days including documentation and customer verification.

Typically, you can get 70-85% of invoice value as advance, depending on customer creditworthiness, invoice terms, and your business profile. The remaining amount is released after customer payment, minus financing charges and fees.

In invoice factoring, customers are notified as payments are redirected to the factor. In confidential invoice discounting, customers are not informed and continue paying you directly. The choice depends on your preference and customer relationship considerations.

In non-recourse factoring, the factor bears the credit risk. In recourse factoring or discounting, you may need to buy back the invoice or provide alternative invoices. Credit insurance can provide additional protection against customer defaults.

Yes, with selective invoice financing, you can choose specific invoices based on your cash flow needs. However, whole turnover facilities may require you to finance all eligible invoices to approved customers.

B2B businesses with creditworthy customers, long payment cycles (30-90 days), and growth opportunities benefit most. This includes manufacturers, distributors, IT services, construction contractors, and exporters with strong sales but cash flow challenges.

While rates may appear higher, invoice financing offers unique benefits like immediate cash flow, risk transfer, and no collateral requirements. When considering the total cost including opportunity cost of delayed payments and collection expenses, it's often competitive.

Client Success Stories

Real businesses that transformed their cash flow with invoice financing

Manufacturing Unit
Textile Industry
"Invoice financing helped us bridge the 60-day payment gap with our major customers. We could take larger orders and grow our business by 40% without cash flow stress."
₹2.5Cr
Monthly Financing
40%
Business Growth
IT Services Company
Software Development
"With 90-day payment cycles from enterprise clients, invoice discounting gave us the working capital to hire more developers and take on bigger projects."
₹1.8Cr
Credit Limit
25
New Hires
Distribution Company
FMCG Distribution
"Invoice factoring eliminated our collection headaches and gave us immediate cash to stock inventory for peak seasons. Our margins improved significantly."
₹5Cr
Annual Financing
15%
Margin Improvement

Why Choose LoanAssure for Invoice Financing?

Your trusted partner for invoice financing with expertise and best-in-class service

Lightning Fast Processing

Get funds within 24-48 hours with our streamlined digital platform and automated verification processes.

Extensive Network

Access to multiple financing partners ensuring competitive rates and flexible terms for your business needs.

Risk Management Expertise

Professional credit assessment and risk mitigation strategies to protect your interests and maximize approvals.

Digital Platform

User-friendly online platform for invoice submission, tracking, and portfolio management with real-time updates.

Relationship Management

Dedicated relationship managers providing personalized service and ongoing support for your financing needs.

Growth Partnership

We grow with your business, scaling financing limits and adding new services as your requirements evolve.

Getting Started with Invoice Financing

Simple steps to begin your invoice financing journey

1
Initial Consultation

Discuss your business needs, cash flow challenges, and financing requirements with our experts.

2
Business Assessment

We evaluate your business profile, customer base, and invoice portfolio to design the right solution.

3
Facility Setup

Complete documentation, legal agreements, and system setup for seamless operations.

4
Start Financing

Begin submitting invoices and receiving funds to improve your cash flow immediately.

Transform Your Cash Flow Today!

Stop waiting for customer payments. Convert your invoices into immediate working capital and accelerate your business growth with our invoice financing solutions.

Apply Now Call Expert