Invoice Discounting and Channel Finance

ISF Limited provides cashflow based working capital financing solutions, relying more on business transactions than just point of time financial statements. Invoice discounting facilities are especially designed for MSMEs to help them avail funds against their sales invoices for a short tenor of 15-90 days depending on the business cashflow cycle.

This infuses short term liquidity Into the business, and since the facility tenor is linked to cash-conversion cycle of the borrowing enterprise, it fits well into the day-to-day operations of the enterprise. Essentially, Invoice-led financing is characterised by multiple high volume / Low value transactions which are executed with the help of digital platform, and can be further strengthened through identified end-use controls.

Invoice discounting is a financial product that allows businesses to borrow against their unpaid invoices to improve cash flow and meet working capital needs.

Businesses with valid, unpaid invoices from reputable buyers and a good credit history are eligible for invoice discounting.

The facility tenor is usually extended for a period of up to 1 year. The facility drawdown is however done in multiple tranches, each tranche having a credit period of up to 90 days

  • Business ID proof (Aadhaar, PAN, COI, GST registration certificate, as applicable)
  • Address proof
  • Financial statements (if applicable)
  • Bank statements
  • GST ledger, as applicable
  • Other financial documents as per loan requirement
  • Copies of invoices to be discounted

Invoice discounting is an unsecured loan, meaning no collateral is required apart from the invoices themselves

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