Bill discounting provides the speed and flexibility needed to keep your business running smoothly. Ratnaafin Capital is committed to supporting your working capital needs by helping you unlock the full value of your invoices without adding debt. Take control of your cash flow with Ratnaafin Capital and lead your business towards sustainable growth.
Maintaining efficient cash flow in the manufacturing industry is critical for day-to-day operations and expansion. According to a recent report by the Reserve Bank of India (RBI), about 42% of small and medium-sized manufacturers in India have persistent liquidity problems. This emphasizes the need for good working capital management to keep production running smoothly. Guaranteed on-time delivery and drive business growth.
One effective solution to improve cash flow is invoice discounting. This is a financial service that frees up funds linked to unpaid invoices. This strategy helps producers make better use of their financial resources. and compete in a market with high demand
Working capital, the difference between current assets and liabilities, measures a company’s liquidity and ability to meet short-term obligations. For manufacturers, it’s essential for:
Lack of working capital can interrupt production cycles, delay orders, and restrict growth of business. Manufacturers often work on credit, and receive customer cash payments weeks or months afterwards. Invoice discounting essentially cropped this gap up by providing the finance required.
Invoice discounts benefit businesses You can secure loans against unpaid invoices It gives immediate liquidity since you do not have to wait for your customer to pay you back.
With Ratnaafin Capital, suppliers can submit accepted invoices to receive up to 80-90% of the invoice upfront post deducting small discounting fee. When the customer has paid the invoice The balance, is passed on to the manufacturer. This process helps maintain smooth cash flow by keeping operations on track without incurring additional debt.
Invoice discounts provide manufacturing companies with many benefits. In addition to improving cash flow:
Construction often has a long payment cycle. It takes customers 30 to 90 days to pay. Invoice discounts save manufacturers from having to wait for payment. This results in an immediate increase in cash flow for day-to-day operations.
This is different from traditional loans that increase debt. Invoice discount is a manual settlement solution. The customer pays the invoice and repays the borrowed amount. As a result, manufacturers do not have to pay long-term debts.
Stable cash flow allows manufacturers to pay suppliers on time. Strengthen trust and credibility Immediate payments can lead to discounts. Reduced costs and increased profitability
Invoice discounts provide the working capital needed to scale production and fulfill large orders without waiting for payment from customers. Helping manufacturers gain opportunities to grow.
Unexpected cash flows can cause financial stress. This makes it difficult to plan for the future. Invoice discounts provide manufacturers with immediate financing. This allows them to focus on growth and innovation. Instead of worrying about cash flow.
For any manufacturing organization Working capital is important to keep processes running smoothly. Run smoothly with Ratnaafin Capital. Invoice discounts are a strategic way to strengthen working capital:
Ensures smooth cash flow management
Invoice discount converts unpaid invoices into cash. It allows manufacturers to maintain stable cash flow and meet daily financial obligations.
Avoid payment delays
Invoice discounts eliminate waiting times for customer payments. It ensures that manufacturers have money on hand to meet immediate needs, such as raw materials or employees…
Maintaining credit control
Invoice discounts help manufacturers maintain control over their relationships with customers. and does not affect credit management Stabilize business operations and open credit lines…
To reduce the risk of bad debt
Producers have access to financing based on confirmed invoices. This reduces the risk associated with customers making late or non-paying payments.
Key Considerations for Manufacturers Using Invoice Discounting
Although invoice discounting is a flexible solution, here are some points that manufacturers need to consider:
The manufacturing industry faces unique challenges, such as long production cycles. High initial costs and extending payment times to customers Invoice discount provides immediate liquidity to address these challenges and provides valuable benefits:
Seasonal fluctuations: Invoice discounts help manufacturers manage cash flow during the off-season. and prepare for periods of high demand.
Payments to suppliers: Consistent cash flow keeps suppliers on good terms. Save costs and ability to make a profit
Growth Opportunities: Immediate access to capital allows manufacturers to seize growth opportunities without waiting for payment from customers.
Steady cash flow plays a key role in sound operational and infrastructural growth in a highly competitive manufacturing setup. Ratnaafin Capital has developed invoice discounting solutions that allow manufacturers to optimize their capital with flexibility and low cost, meet financial obligations, and scale up in volume.
Contact Ratnaafin Capital today, if you are a manufacturer, looking to improve cash flow and working capital. Find out how our invoice discounting solutions could be beneficial for your business financial health and growth.
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