Invoice Discounting vs. Business Loan

Invoice Discounting vs. Business Loans: A Quick Guide

Most businesses inevitably face a cash crunch or two during their lifespan. To tide over such lean periods, a business can opt for financing options available in the market, the most obvious of which is a business loan or alternative financing solutions such as invoice discounting. How is invoice discounting different from a business loan? What are the advantages of it over a regular business loan? Here’s how!

Common cash flow mistakes

Common Cash Flow Mistakes Most Small Business Owners Make

Every business no matter how good the product may be, or how much funding they have are bound to have some trouble if their cash flow management is off. A company’s cash flow is dependent on timely invoice payments from their customers. A 2016 survey by Atradius on B2B Payments in APAC showed that Indian businesses face a delay of 65 days on an average to receive payments from the day of invoicing. The business struggles to stay afloat when these payments are delayed. This is one crucial aspect of any business that can spell success or doom for them. Here we outline some of the most common cash flow mistakes small business owners should stay clear of to avoid jeopardising their survival.

How to read your company's cash flow statement

What Is A Cash Flow Statement And How To Read It

Understanding your company’s cash flow statement is indispensable to getting your company finances in order. It tells you how much money goes in and out of your business. Your company’s cash flow statement, the balance sheet and the income statement together will give you a holistic view of your company’s financial profile. A cash flow statement is a report of sorts that tells you how much money your company has in hand or its liquidity.

what-is-invoice-discounting

What is Invoice Discounting?

All businesses inevitably face cash crunches from time to time, at some instance or the other. While larger businesses search and utilise all viable solutions to keep their businesses afloat, small businesses often don’t have many options to choose from. Such businesses need financing mechanisms which are more flexible and specifically cater to their cash flow needs. Invoice Discounting is an alternative financing solution for these businesses that utilises the value of their invoices.