There are certain nuances in businesses today that act as major factors when it comes to practical serviceability. Invoice factoring and Invoice discounting makeup an interesting context for differentiating business processes that work similarly but at the same time are vastly different from each other. The differences, however, are very important when it comes to…
We got talking to an Expert in Logistics industry and got an insider’s view on the do’s & don’t. Below are his views on the industry & how it works.
Cash is the ‘King’. The time delay between payment to suppliers and employees and collection from vendors and customers is the major problem and the only solution is cash flow management which is actually very complex to manage.
According to the International Finance Corporation, the total financing gap in the SME space is Rs. 2.93 trillion. One reason could be that financial institutions mostly cater to the demand of traditional collateral-based lending, leaving out many SMEs without funds and dry. SMEs hence turn to alternative finance solution like Invoice financing, asset-backed contributions, letter of credit and others for their capital requirements. Out of these, Invoice Financing is their first choice.