Red Fort Capital Presents Invoice Discounting Solutions For Msmes, Small Businesses
Date
11/28/2023 2:20:48 PM
(MENAFN- KNN India) New Delhi, Nov 28 (KNN) Red Fort Capital Finance Company, a NBFC lender to small businesses on Tuesday launched its invoice discounting solution to help MSMEs bridge gaps in working capital requirements.
The invoice discounting mechanism involves a financing arrangement where a business sells its unpaid bills to a third-party financier, such as a bank, at a reduced rate for quick access to working capital. The financier later
collects the full amount from the customer upon the invoice's maturity.
Announcing the launch, Parry Singh, Chairman and CEO, Red Fort Capital, said,“At Red Fort Capital, we are dedicated to fostering growth for our borrowers, especially in the challenging landscape faced by Small Businesses. With the launch of our Invoice Discounting solution, we aim to empower businesses by providing quick and flexible lending options tailored to their unique needs.”
According to the NBFC, invoices ranging between Rs 20 lakh to Rs 1 crore (unsecured) and up to Rs 3 crore (secured) are disbursed with up to 90 per cent of the invoice value in less than 24 hours.
The documents required by an
MSME
are the invoice or purchase order, top 10 customers and their yearly sales, bank account statements of the last two years, monthly
GST
returns of the previous two years, KYC documents, audited financials and ITR returns for two years, sales ledger for last one year and collateral sale deed (for secured lending).
All sectors except construction and education are eligible for invoice discounting, as per Red Fort Capital.
(KNN Bureau)
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