Multiple banks. Different interest rates. Call it a "conflict of interest".
  • Loading your search...
    Close

    Compare, check your eligibility and apply online instantly.

  • Invoice Financing - A Quick Solution to All Your Business Credit Needs is Rated as "Great!" by 94136 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service

    Responsiveness

    Personal Loan BYTES FROM OUR KITCHEN
    rated 4.0/5.0 by 94136 users

    Invoice Financing - A Quick Solution to All Your Business Credit Needs

    When a buyer pays for a product or service to a business, he or she receives a commercial document stating the details of the transaction. These kind of documents containing the product/service details, quantities, and the amount paid are known as invoices. If a business owner is facing a temporary financial crisis, these invoices can be used to receive monetary aid to take care of the credit needs related to the business. Under this scheme, the merchant will receive the funds in advance against unpaid invoices that the customers are yet to pay for.

    If you are a business owner in need of financial aid in order to improve the cash flow within your business, make payments to the employees or suppliers, spend on the business operations, or further invest in the growth of business, you can avail the benefit of Invoice Financing. This scheme is directed to help merchants gain access to funds for temporary financial crises even before their customers make their payments. This type of financing schemes help solving credit requirements when the customers are taking a long time to make their payments. In order to avail the Invoice Financing scheme, business owners will have to pay a percentage share of their upcoming invoice amount to repay the debt.

    What is Invoice Financing?

    When a business purchases goods from a retailer or wholesaler, the payments of the items are usually done later. However, purchasing materials from retailers in credit means that the business has to give away a huge portion of the funds received from its customers to pay off the debt. This system of payment reduces the cash flow within a business since the money has been used to clear off the debt instead of being used to enhance the operations. To help business owners better the financial condition of their businesses, financial lenders offer Invoice Financing which can be used to take care of the monetary needs of the business while maintaining a sufficient amount of cash flow. This loan can be used for short-term credit requirements of a business based on the unpaid invoices that the company will receive. The funds received under this asset-based lending scheme are subject to the account receivables from future customers of the business. Due to this reason, Invoice Financing is also known as Account Receivables Financing.

    What Are the Benefits of Invoice Financing?

    If you are deciding whether to opt for Invoice Financing for the financial requirements of your business or not, you should see the below mentioned list comprising the key features of the scheme:

    • Quick access to funds Applying for a loan or other financial product is a time-consuming task and the loan disbursal may take longer. If an applicant wants to receive cash immediately for his or her business expenses, Invoice Financing is the option that they should go for.
    • Locked cash can be released This scheme is targeted towards liquefying cash that has been locked for a long time due to delayed payments by the customer. This amount can, then, be used in case of emergencies or to help the business grow further.
    • Improves cash flow As Invoice Financing can turn pending account receivables into liquid cash, the cash flow within the company increases. This can, in turn, lead to shorter working capital cycles.
    • No collateral is needed The business owner does not need to provide any collateral to be eligible for this financing plan. The applicant only has to provide the invoice transaction details that are yet to be paid.
    • More chances of growth Since Invoice Financing allows for credit sales to be converted into quick cash, there is more room for the business to grow in terms of sales and operations. The funds from this scheme can be used for multiple company expenses such as paying the employees or suppliers, buying any machinery, or making a further investment.
    • Complete confidentiality Once a business owner decides to opt for the Invoice Financing scheme, the customers and suppliers will not be made aware of the borrowings of the business subject to the sales invoices. Although, this happens only when a business owner opts for Invoice Discounting.
    • Maintain a healthy relationship with the customers Using this scheme, a business can offer credit period to more of its customers while maintaining its regular cash flow. In turn, this will help the business flourish both in terms of sales and operations.
    • Better upfront cash with less chances of outgrowth When compared to other loan and overdraft facilities, a business can avail more liquid cash using Invoice Financing. Since the cash received from this scheme is directly dependent on the sales of the company, there is also less chances for the business to outgrow the amount.

    Key Points to Remember About Invoice Financing

    Before you decide to liquidate your assets in order to avail this financial scheme, you must learn about the following points mentioned in the list below:

    • Many stakeholders might perceive Invoice Financing negatively due to the false stigma people have towards it. Therefore, a business should always consider this factor before deciding to avail this scheme.
    • Most of the financial service companies offer Invoice Financing only on commercial invoices. In case the business caters to the general public, it might not be eligible for this scheme depending on the lender.
    • If this scheme is used excessively then the business might lose focus from improving the liquidity and working capital cycles. This might lead to lenient credit norms for debtors and the business might incur losses in the long run.
    Apply for Personal Loan

    Types of Invoice Financing

    Invoice Financing can be broadly categorised into two types - Invoice Factoring and Invoice Discounting. Learn about Invoice Factoring and Invoice Discounting in details below:

    • Invoice Factoring In order to meet the immediate cash requirements of a business, a merchant might decide to sell all the accounts receivables to a third party, known as factor, at a discounted price. This type of debtor finance is known as Invoice Factoring. In this financing scheme, the borrower avails a loan by providing the invoices of his or her business as collateral in order to receive liquid cash. If the invoices are paid in full by the borrower, the lender will remit a percentage of the invoice amount to the business and the borrower will only have to repay a fee or interest for the service. In this type of Invoice Financing, the lender collects the payments from the customers of the business. Due to this reason, this type of financial scheme might reflect poorly on the business. Therefore, businesses can use Invoice Discounting as an alternate to receive financial aid through Accounts Receivables Financing.
    • Invoice Discounting In this type of Invoice Financing, the business can use its accounts receivables or invoices to receive liquid cash for its credit needs. However, in Invoice Discounting, the customers make the payments directly to the business and not the lender. Therefore, the customers are not aware if a business is using Invoice Financing for its financial needs. Using this type of debtor finance, the lender offers a loan amount subject to a maximum of 95% of the invoice amount to the borrower. The business can repay the financing company using the payments received from the customers without any additional fee or interest.

      This type of Invoice Financing is more popular due to being seamless and transparent. Additionally, it also doesn’t hamper the reputation of the business.

    Conclusion

    If you are a business owner facing a short-term financial crisis, you can use your accounts receivables or invoices to receive a loan to meet your business credit needs. Invoice Financing is an upfront cash loan that can be used by a business to improve the cash flow and offer better services to its customers while releasing the locked-in funds. A borrower does not need to provide any collateral in order to avail this scheme and receive financial aid quickly within as less as 24 hours. With Invoice Factoring and Invoice Discounting, a business owner can choose how he or she wants to repay the financial services organisation offering the loan.

    Personal Loan Reviews

    • Bank Bazaar Personal Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has been a very good experience i had with them and i had recently started using the services of them. I had been using the website of them and it has been easy in using it. Their customer support also had been good as well where there has been a good response which they had made so far.
      Was this review helpful? 3
      , new delhi
      Reviewed on Sep 17, 2018
    • HDFC Bank Personal Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      The process in getting this loan has been smooth and easy. The loan amount which they had provided had been less than i expected, but the interest rate with them had been good. There has not been any hassle faced with the services of them. Their customer support and their staff responses also had been good as well.
      Was this review helpful? 2
      , new delhi
      Reviewed on Sep 17, 2018
    • Axis Bank Personal Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      It has been a very good experience i had with this loan and the loan amount which they had provided also had been good as well, but the interest rate had been on the higher end when compared with the market rate. Their customer support also had been responsive as well and there has not been any hassle faced with them so far.
      Was this review helpful? 1
      , new delhi
      Reviewed on Sep 17, 2018
    • Bank Bazaar Personal Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      It has been a good experience i had with Bank Bazaar and i had been using the services of them for the last 4-5 months. I had been using the mobile application as well as the website of them and both had been easy in using it. Their customer support also had been good as well.
      Was this review helpful? 1
      , new delhi
      Reviewed on Sep 17, 2018
    • Kotak Personal Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      The process in getting this loan had taken almost three to four days and the process had been easy. The loan amount which they had provided has been satisfactory and the interest rate also been good as well. There has not been any charges which they had been charged also had been good when compared with the market rate.
      Was this review helpful? 1
      , new delhi
      Reviewed on Sep 17, 2018
    • HDFC Bank Personal Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      It has been a good experience in getting this personal loan and the loan amount which they had provided also had been satisfactory. The interest rate with them has been a little higher when compared with the market rate. There has not been any charges which they had taken on processing and their customer support had been good.
      Was this review helpful? 4
      , bangalore
      Reviewed on Sep 17, 2018
    • HDFC Bank Personal Loan
      "Not satisfied with the service"
      0.5 1.0/5 "Really Bad"
      The experience i had with them has not been satisfactory and the process has been good in getting the loan. There has been some small issues when i was trying to close it before the tenure period where there was no option for a pre closure. The interest rate has been quite nominal with them and the loan amount was okay.
      Was this review helpful? 1
      , chennai
      Reviewed on Sep 17, 2018
    • review Personal Loan
      "Good finacial service with high rate of intrest "
      0.5 4.0/5 "Great!"
      I have taken personal loan from Bajaj fin serv , Am not satisfied with the rate of interest of 19%which is high. Where there is processing fees of Rs 8000 They took time for approval and documentation. Their customer executive explained the term and condition before taking the loan.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Sep 16, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have been using the Bank Bazaar services for a while. It was good, I am using the mobile application it is really easy uses. Customer support is good , they helped me very well throughout the process . This was my first experience with bank bazaar and it is too good .
      Was this review helpful? 1
      , lucknow
      Reviewed on Sep 16, 2018
    • IndusInd Bank Personal Loan
      "good "
      0.5 2.0/5 "Expected more"
      I got my personal loan through INDUSIND BANK , the loan process was too slow and even initially they said everything will be online but they personally visit to check the documents , it took 25days to receive the loan . They provide 300000 of loan and it is sufficient , there is no processing fee with this bank .
      Was this review helpful? 1
      , lucknow
      Reviewed on Sep 16, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been using BANK BAZAAR services for while , i came to know about this service through online . The customer support follow up was also good during the application. Bank Bazaar makes it easier to compare and choose various banking products online. .
      Was this review helpful? 3
      , mumbai
      Reviewed on Sep 16, 2018
    • Incred Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have take my personal loan with INCRED INSTITUTION , the tenure period is 36 months and rate of interest is too high 28% so i am not happy with that . I did not face issue at the time of getting loan . The processing fee is 5000 and loan amount is 110000 and it is sufficient to me .
      Was this review helpful? 2
      , mumbai
      Reviewed on Sep 16, 2018
    • Bank Bazaar Personal Loan
      "good service"
      0.5 5.0/5 "Blown Away!"
      I have been using the Bank Bazaar services for a while. For the first time i have taken i have taken financial product through bank bazaar . The best part is the process of getting loan was to quick . Bank bazaar needs to filter the list suggested to the customers based on the requirements as per customer needs.
      Was this review helpful? 0
      , chennai
      Reviewed on Sep 16, 2018
    • HDFC Bank Personal Loan
      "good service"
      0.5 4.0/5 "Great!"
      My personal loan was taken with HDFC BANK , the processing fee is 8000 and it is too high , there is no preclosere option with this bank . Rate of interest is 17.5% and it is not nominal in the market . Customer support and their response is good , i got my loan soon , there is no issue with this bank .
      Was this review helpful? 2
      , chennai
      Reviewed on Sep 16, 2018
    • Bank Bazaar Personal Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      I have been using the Bank Bazaar services for a while. The best part is customer support there peoples are very cooperative , i receive too many calls from them just to get my work done , they are very helpful . Mobile application and website were easy to use and very user friendly .
      Was this review helpful? 1
      , kolkata
      Reviewed on Sep 16, 2018
    • ICICI Bank Personal Loan
      "GOOD SERVICE"
      0.5 4.0/5 "Great!"
      My personal loan was taken with ICICI BANK , i have bitter experience with this bank , the customer support attitude not good with this bank . Initially they said 12.9% of interest rate but later they charge 14% so it is very disappointing part . Loan amount is 1.5 lakh and it is sufficient to me .
      Was this review helpful? 1
      , kolkata
      Reviewed on Sep 16, 2018
    • review Personal Loan
      "EXCELLENT"
      0.5 4.5/5 "Excellent!"
      My personal loan was taken with BAJAJ FINANCE , the tenure period is 3year . Customer support is good they respond on time and the process of getting loan is very smooth and quick , i did not face any issues at the time of documentation . Loan amount is 60000 and it is sufficient to me .
      Was this review helpful? 1
      , nellore
      Reviewed on Sep 16, 2018
    • Bank Bazaar Personal Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      I have been using BANK BAZAAR for many months . The best part of this website is their representative is good and attentive , everything was explain step by step and clearly , and even their follow up is outstanding . I came to know about this website through advertisement .
      Was this review helpful? 1
      , nellore
      Reviewed on Sep 16, 2018
    • Fullerton Personal Loan
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      My personal loan was taken with FULLETRON INSTITUTION , i am happy with this bank , they provide within 15 days my loan amount . They charge 11% of interest rate and tenure period is 3year . They provide 120000 of loan but i got 99000 after deducting . I use to pay 5500 of EMI.
      Was this review helpful? 0
      , nellore
      Reviewed on Sep 16, 2018
    • Bank Bazaar Personal Loan
      "good service"
      0.5 4.0/5 "Great!"
      I've been using the Bank Bazaar services for a while. I have applied for a personal loan via Bank bazaar. The customer support follow up was also good during the application. Bank Bazaar makes it easier to compare and choose various banking products online.
      Was this review helpful? 0
      , new delhi
      Reviewed on Sep 16, 2018
    Common Loader Icon

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.