Before starting with Invoice Discounting and Bill Discounting — a financing method where a business gets immediate funds against unpaid invoices, rather than waiting for customer payment terms — it helps to have everything ready in advance. Here's the checklist relevant to businesses with long receivable cycles wanting to improve cash flow.
The Checklist
✓ Genuine, verifiable invoices raised against actual delivery
✓ Buyer's creditworthiness assessment by the financing party
✓ Business KYC and registration documents
✓ History of past transactions with the buyer, where relevant
✓ Terms of discounting — recourse or non-recourse
✓ Repayment/settlement mechanism once the buyer pays
Why Preparation Matters
Missing or incomplete documentation is one of the most common reasons applications get delayed with banks, NBFCs, and dedicated invoice discounting platforms. Having this list ready before you begin can meaningfully speed up the process.
Once You Have Everything Ready
- Identify invoices eligible for discounting based on buyer and terms
- Submit invoices to the chosen financing platform or institution
- Receive an advance against the invoice value, minus a discount
- Settle the arrangement once the buyer makes the original payment
Need Help With This?
Leegal's team handles registration, compliance, and advisory work like this end-to-end, with transparent pricing and a dedicated point of contact throughout.
Call: +91 95721 91163 | Email: mail@leegal.in