Supply Chain Finance (SCF)
Purchase Invoice Discounting (PID) is a strategic financing solution that enables businesses to make early payments to suppliers and vendors, allowing them to negotiate better pricing and secure early payment discounts. This solution is particularly beneficial for SMEs, as it enhances their ability to optimize procurement costs while ensuring a steady supply chain flow. For corporates, PID serves as an effective tool to manage additional working capital requirements without straining their liquidity. By leveraging PID, businesses can improve cash flow efficiency, support projected growth, and strengthen supplier relationships—ensuring uninterrupted operations and long-term financial sustainability.
Key Benefits of Purchase Invoice Discounting:
Optimized Cash Flow:
Enables businesses to preserve liquidity while making early supplier payments.
Cost Savings:
Helps SMEs avail early payment discounts, reducing procurement expenses.
Stronger Supplier Relationships:
Ensures vendors receive timely payments, fostering trust and long-term partnerships.
Efficient Working Capital Management:
Corporates can leverage PID to fund projected growth without impacting existing cash reserves.
Scalable & Flexible Financing:
Adaptable to dynamic business needs, ensuring financial agility.
By integrating Purchase Invoice Discounting into your financial strategy, businesses can enhance operational efficiency, reduce procurement costs, and create a more resilient supply chain.
Purchase Invoice Discounting process
Pay Later, Keep Suppliers Happy
- Get Supplier
Invoice
Your supplier sends you an invoice after providing goods or services. This invoice outlines the amount you owe them for the purchase.
- Submit
Invoice
Submit the supplier invoice through our digital platform for a quick review and approval. This step ensures everything is processed smoothly and efficiently
- We Pay
Supplier
Once approved, we pay your supplier directly, ensuring they receive payment promptly. This helps you maintain a positive and trustworthy relationship with your suppliers while managing your own cash flow.
- Repay
Later
You can repay us at a later date based on flexible terms that align with your business’s cash flow cycle. This gives you the breathing room to manage other business expenses while still honoring your payment commitments.
Key Matrix at Glance
Key Metric
- Advance Payment
- Repayment Terms
- Approval Time
- Eligibility Criteria
- Risk Assessment
- Processing Fees
- Maximum Financing
- Funding time
Details
- Receive up to 90% of the invoice value upfront.
- Flexible repayment options ranging from 30 to 90 days.
- Fast approval, usually within 24 to 48 hours.
- Vendors must have at least 12 months of transaction history.
- Automated credit checks and buyer evaluation to minimize risk.
- Transparent fees, typically a small percentage of the invoice.
- Financing available for invoices up to ₹5 Crore.
- Quick disbursement, funds transferred within 1-2 business days
Sales Invoice Discounting (SID) is a powerful financing solution that enables businesses to access early payments against outstanding invoices issued to large corporates. Instead of waiting for extended payment terms, businesses can unlock a significant portion of their working capital tied up in receivables, ensuring uninterrupted operations and fueling projected growth.
This solution is particularly beneficial for MSMEs and suppliers, who often experience cash flow constraints due to long invoice payment cycles. By leveraging Sales Invoice Discounting, businesses can convert receivables into immediate liquidity, allowing them to reinvest in inventory, expand operations, and meet financial obligations without delays.
Key Benefits of Purchase Invoice Discounting:
Immediate Cash Flow Access:
Convert pending invoices into instant working capital, reducing reliance on traditional loans.
Business Growth & Expansion:
Utilize unlocked funds for inventory procurement, market expansion, and operational scaling.
Reduced Financial Risk:
Avoid cash flow disruptions caused by long corporate payment cycles.
No Collateral Required:
Financing is secured against invoices, eliminating the need for additional assets as security.
Stronger Financial Position:
Maintain a healthy cash conversion cycle while strengthening business creditworthiness.
By integrating Purchase Invoice Discounting into your financial strategy, businesses can enhance operational efficiency, reduce procurement costs, and create a more resilient supply chain.
Purchase Invoice Discounting process
Pay Later, Keep Suppliers Happy
- Issue
Invoicee
After delivering the product or service to your customer, generate an invoice with the agreed terms of payment. This is the formal document that confirms the amount owed by your client.
- Submit
Digitally
Upload your invoice securely through our digital platform. This step is completely paperless and ensures a fast and efficient process with minimal administrative effort.
- Receive Funds
Fast
We advance you up to 90% of the invoice value within 24 to 48 hours, providing you with immediate access to working capital. This helps bridge cash flow gaps without waiting for your customer to pay.
- Customer Pays
Us
On the due date, your customer makes the payment directly to us. The terms of payment you’ve agreed with your client remain unchanged, and they continue to pay as they normally would.
- Final Balance Paid
Once your customer has paid the invoice in full, we release the remaining balance of the invoice amount to you, minus a small, transparent service fee for our financing.
Key Matrix at Glance
Key Metric
- Advance Payment
- Repayment Terms
- Approval Time
- Maximum Financing
- Eligibility Criteria
- Risk Assessment
- Processing Fees
- Funding Speed
Details
- Receive up to 80–90% of the invoice value upfront.
- Buyer repays the financing platform in 30–90 days, as per original terms.
- Typically 24–48 hours for invoice approval.
- Available for invoices ranging from ₹50,000 to ₹5 Crore.
- Vendor must have at least12 months of trading history with credible buyers.
- Automated credit checks and buyer evaluation to minimize risk.
- Usually a small percentage of the invoice value.
- Funds transferred within 1–2
business days after approval.
Remaining balance (minus fees) paid to the vendor after buyer repayment.
Vendor Financing is a strategic supply chain financing solution that enables buyers to efficiently manage their working capital by offering early payment options to suppliers while simultaneously extending their own payment terms. This dual benefit allows businesses to optimize cash flow, maintain liquidity, and build stronger supplier relationships without compromising their financial flexibility.
Through Vendor Financing, suppliers receive accelerated payments, reducing their reliance on costly credit lines and improving their operational efficiency. At the same time, buyers can extend their own payable cycles without impacting supplier cash flow, ensuring a more sustainable and efficient supply chain."
Key Benefits of Vendor Financing:
Optimized Working Capital:
Buyers can extend their payment terms while ensuring suppliers receive early payments.
Stronger Supplier Relationships:
Timely payments enhance supplier trust and reliability, ensuring uninterrupted supply chain operations.
Improved Cash Flow Management
Reduces the burden of upfront capital requirements while maintaining smooth business operations.
Lower Financing Costs
Suppliers can avoid expensive borrowing options, reducing overall financial stress.
Scalability & Business Growth:
Ensures long-term financial sustainability by enabling businesses to reinvest capital into growth initiatives
By leveraging Vendor Financing, businesses can achieve greater financial agility, supply chain resilience, and a competitive edge, ensuring smooth operations while maintaining robust supplier networks
How Vendor Financing Works: Step-by-Step
- Vendor Delivers
Goods or Services
The vendor fulfills the purchase order, delivering the agreed goods or services to the buyer. This confirms the transaction and makes the goods eligible for financing. The vendor’s part in the deal is complete.
- Invoice is
Generated
Once the goods or services are delivered, the vendor generates an invoice. This can be uploaded manually or synced via the vendor’s ERP system. The invoice includes payment details, due date, and amount due.
- Automated Invoice
Approval
The platform quickly reviews the invoice through automated AI credit assessments. Historical payment data and buyer creditworthiness are analyzed. Approval usually occurs within 24-48 hours, ensuring speed.
- Early Payment to
Vendor
Upon approval, the vendor receives 80-100% of the invoice amount upfront. Payment is made within 1-2 days, providing immediate cash flow. This allows the vendor to manage operations smoothly and fulfill more orders.
- Buyer Repays on
Agreed Terms
The buyer repays the financing platform within 30-90 days based on agreed terms. This gives the buyer flexibility without immediate payment pressure. The platform collects the full invoice amount from the buyer on the due date.
Key Matrix at Glance
Innsigh Details
- Average Payout Time
- Advance Payment %
- Repayment Terms
- Eligibility Criteria
- Risk Mitigation
Details
- Payments disbursed within 48 hours of invoice approval.
- Vendors receive up to 90% of invoice value upfront.
- Buyers repay within 30–120 days, based on agreed terms.
- Minimum 6 months of transaction history required.
- Includes credit checks on buyers and digital KYC for all parties.
At Varfinn, we understand that businesses require strategic financial support to sustain operations, drive expansion, and invest in critical assets. Our Business & Corporate Loan solutions are designed to provide enterprises with fast, flexible, and scalable financing options to meet their diverse financial needs.
Key Benefits of Vendor Financing :
Short-Term Machinery Loans
Invest in Advanced Equipment & Technology
In today’s competitive landscape, businesses
must continuously upgrade their
machinery,
Working Capital Loans –
Power Your Business Growth & Expansion Maintaining adequate working capital is crucial for seamless business operations. Our Working Capital Loans provide liquidity to:
Trade Credit Financing
Simplifying Domestic & International Trade Transactions Trade Credit Financing empowers businesses to optimize cash flow and reduce trade cycle risks while conducting domestic and international transactions. Our financing solutions help:
Our loan structure ensures minimum paperwork, quick approvals, and customized repayment plans to support businesses in making timely investments.
How Business & Corporate Loans Work at Varfinn
- Identify Your
Financial Need
Choose the loan that suits your business, whether it’s for machinery upgrades, working capital, or trade credit financing.
- Simple
Application
Process
Apply online with minimal paperwork. The process is quick and straightforward, saving you time.
- AI-Driven
Credit
Assessment
Our AI-powered system evaluates your business's creditworthiness and provides quick approval with competitive rates.
- Fast Approval
&
Funding
Once approved, funds are disbursed quickly (within 24-48 hours) to meet your business needs.
- Flexible
Repayment
Options
Repayment terms are tailored to your cash flow, with flexible options that suit your business cycle.
- Use Funds to
Grow
Your Business
Invest in machinery, expand operations, or optimize trade credit for smoother transactions and growth.
- Ongoing
Support
Repay your loan with ease, and enjoy ongoing support and guidance for future financial needs.
Key Matrix at Glance
Innsigh Details
- Loan Types
- Loan Amount Range
- Advance Disbursement
- Repayment Flexibility
- Eligibility Criteria
- Application Process
- Approval Method
- Collateral Requirement
- Use of Funds
Details
- Machinery Loans, Working Capital Loans, Trade Credit Financing
- ₹1 Lakh to ₹5 Crore
- Funds disbursed within 24–48 hours post-approval
- Customizable terms: Monthly, Quarterly, or Linked to Business Cycles
- Minimum 12 months business vintage and valid financial records
- Online, minimal documentation, quick digital onboarding
- powered credit assessment for fast, accurate decisions
- Based on loan type; many options available without collateral
- Equipment upgrades, working capital, payroll, trade payments, expansions
Frequently Asked Questions
Invoice discounting is a financing method where businesses use their unpaid invoices as collateral to obtain immediate funds from a financial institution. This allows businesses to access cash tied up in receivables, improving liquidity and supporting ongoing operations
In invoice discounting, a business sells its outstanding invoices to a financier at a discounted rate. The financier provides an upfront payment, typically covering a significant portion of the invoice value. When the customer settles the invoice, the financier releases the remaining amount, minus a fee for the service
- Minimum revenue of the company should be 25 Cr.
- Maintaining a strong financial record increases the chances of obtaining approval for invoice discounting services.
- Invoices should be genuine, with clear terms and verifiable delivery of goods or services.
Purchase Invoice Discounting allows you to pay your supplier upfront while extending the payment term. We pay your supplier directly, and you can repay us later, helping you manage your working capital efficiently.
>Sales Invoice Discounting is a financing solution that allows businesses to access immediate cash by selling their unpaid invoices. Instead of waiting for your customer to pay, we advance you a percentage of the invoice value, which helps improve your cash flow.
- Application: Submit an application along with necessary documents, such as financial statements and a list of customers.
- Assessment: The financier evaluates your business and customer creditworthiness.
- Agreement: Upon approval, sign an agreement outlining terms, fees, and advance rates.
- Funding: Submit invoices for discounting; receive immediate funds based on the agreed terms
Sales Invoice Discounting is a financing solution that allows businesses to access immediate cash by selling their unpaid invoices. Instead of waiting for your customer to pay, we advance you a percentage of the invoice value, which helps improve your cash flow.Invoice discounting does not affect your balance sheet, as it is considered an off-balance-sheet financing method. This approach allows you to access immediate funds by leveraging your accounts receivable without recording additional debt or liabilities. Consequently, your balance sheet remains unaffected, and the transaction is typically disclosed in the accompanying notes of your financial statements
- Allows MSMEs to expand into new markets, invest in growth opportunities, and remain agile in a volatile economic landscape.
- Company Profile.
- Audited Financials of the last 3 years.
- Debt Profile.
- Top 5 Supplier / Buyer ledger.
- KYC of the company ( PAN, GST and Udhyam certificate)
- KYC of the Directors ( PAN , Adhar card, Live photograph)
- Brief note on the Borrower Entity and Promoters.
- CC account if any and primary bank account statement of the last 12 months.
- Latest Sanction letter.
At Varfinn, we offer invoice discounting solutions with interest rates customized to your business's unique profile and needs. Our rates typically start from 12% per annum and can range up to 16% or 17%, depending on factors such as your company's financial health, the creditworthiness of your customers, and the specific terms of the financing agreement. This flexible approach ensures that you receive financing solutions that align with your business's financial dynamics and requirements.