What is Invoice Discounting and How it Works?
Invoice Discounting is a way of utilising the invoices against which a payment is due, by using the invoice as a means to gather money from investors in a bidding system, thereby financing the needs and paying the money back to the investors once the payment is received from the vendor
How does it work?
•The industry practice for payment of a service generally lies between 30 – 90 days. But what if a business owner has a new idea or wants to purchase a piece of machinery available at an attractive price or is in need of working capital urgently for any other issue.
•In such case the business owner can use the invoice he has as an asset to gain money that too without any collateral!
•All he has to do is upload the Invoice, by deciding a suitable discount rate, depending on his monetary requirements, to Lend Partnerz product platform and after a rigorous checking and validation of the Invoice by Lend Partnerz in a period of 72 hours, it will be made available to Investors who are looking to invest their money
•The Investors will bid and contribute certain percentage of the money required.
•The business owner now has availed the cash needed for his operations
•As soon as the business owner receives his due payment from the Vendor, he will pay back the investors the money he owed them.
•The Investors get their money back with extra profits in the ratio that they contributed the money
•This becomes a win – win situation for both the parties, as the Business Owner gets the required capital and the Investors earn a huge profit in a short amount of time without any risk of a default payment.
What’s in it for me? – From Business Owner’s Perspective
•We know the time between the goods delivered and payment received is crucial and takes a lot of time and a lot could happen between this period, hence we at Lend Partnerz appear as an intermediary and help you with the monetary requirements.
•As a Business Owner you get the required working capital needed for your operations to function without any hiccups.
•All you need to do is upload the Invoice at our platform and after thorough checking we will make sure you get the required money within 72 hours of you uploading the invoice.
What’s in it for me? – From Investor’s Perspective
Are you a smart Investor who doesn’t want to take risk while investing? Or are you a big investor wanting to earn guaranteed profits in a short duration? Nonetheless Invoice Discounting is perfectly suited for both of you
How you ask? The answer is simple, there is no risk of a default!
Shocked? Is the question ‘How is this possible?’ running on your mind?
We will break it down for you
When a Business Owner uploads an invoice in order to avail money from you, it passes through Lend Partnerz stringent compliance checking process ensuring that there are no fake invoices or the Vendor who owes the money is going to default, as the vendors and both the business owners are from Blue Chip companies and we do a thorough background verification
As an Investor you now simply have to bid as much as you can and lock in your money and then just wait for a period of 90 – 120 days at max!
After that the Business Owner receives his due payment and you get your money back, with profits!
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