Invoice funding is a great way of receiving quick finance solutions for business owners who are looking for urgent funds. This helps Small & Medium Enterprises to run their daily operations and doesn’t let the shortage of funds hinder the potential growth of the company.
What is Invoice Funding?
For companies that use invoices for financial payments often have their payments stuck at their customers’ end. This makes running daily operations difficult for an SME. In such situations, an enterprise can liquidate cash in exchange for unpaid customer invoices through invoice funding from a finance company like KNAB Finance.
Whom is it best suitable for?
Invoice funding is a type of corporate financing solution that comes as a big help for business owners whose company growth is being affected due to lack of money. It’s helpful for owners like manufacturers, distributors, suppliers for large corporates, and other SME and MSME.
How does KNAB provide Invoice Funding?
KNAB ensures that a small business never feels the credit crunch through invoice financing in India. It’s a big financial support for business owners by helping them to turn their unpaid customer invoices into fast cash with invoice funding. It helps them to free-up cash tied invoices by pre-selling them to a third party and receive a lump sum amount in exchange.
- Fill the application online with correct required details and information.
- Submit tied-up invoice from the customer, with whom the professional relationship has been in existence for over 3 months.
- Once approved, the owner will receive about 85% of the invoice value and the rest 15% will be retained by us until the customer pays back.
Benefits Invoice Funding from KNAB Finance?
- Easy Criteria
For invoice funding with KNAB Finance, your company needs to meet the following criteria:
- Turnover of above 25 lakhs
- Business vintage of over 2 years
- Professional relationship of over 3 months with the customer
- The business should not fall under the blacklisted/excluded list
- Quicker and Faster Process
With invoice funding, you don’t need to grapple with the slow-moving loan-approval process. At KNAB Finance, an invoice can be funded within 24 hours once your loan application has been approved.
The invoice funding does not demand any of your priced personal assets. Rather it uses the unpaid invoices as collateral to receive the funds. This feature of the invoice funding makes you feel at ease, with the least risk involved.
The process for applying and receiving the fund is flexible. An online application with the correct invoices is all you need. The application form for the loan can be filled just in 10-15 minutes. Once the details are checked, the disbursement of the loan is fast.
The following documents would be required to be provided during the loan application process:
- Promoters and entities KYC
- 1-year of audited financials-along with annexure if any (3CA/3CB/3CD)
- Last 6 months Bank eStatement (Recent)
- Last 6 months GST Returns
- ITR and statement of Income
We recommend uploading/sharing the original documents that you receive from your bank, tax authorities, CA/Auditors
Note: For loan amount of less than 3 lakh, furnishing GST Return and ITR will not be required.
No Hidden Cost
Apart from the initial charge, there are no other hidden charges involved in invoice funding. The terms and conditions and entire communication are transparent.