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Early Payment For Vendor Financing

Early Payment in India has become a popular financial model in today's world proving to benefits to all the three parties involved the buyers, the sellers, and the financiers. Know more about it.<br>

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Early Payment For Vendor Financing

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  1. Early Payment For Vendor Finance

  2. Early Payment

  3. Working Capital • Working capital is the backbone of any business. • Extremely essential for running a business and its day to day activities. • But what if there is a scarcity of working capital due to a payment delay. • This is why the need for early payment in Indiais rising every year.

  4. Vendor Finance • Mostly big companies pay after at least 60 to 90 days from the date of invoice. • Businesses cannot afford this delay. • This is where supplier finance in Indiacomes in role. • Also known as vendor finance.

  5. Vendor Finance • Vendor finance is a simple process of invoice discounting in which a vendor or a business secures the payment from a third party or financier on behalf of its invoice. • It is a kind of loan which is far better than an actual bank finance. • Bank finance requires a lot of formalities and paperwork, apart from all these banks also require a collateral. • It is a quicker process and helps the vendors in maintaining the flow if businesses. • Shortage of funds does not act as a barrier for small businesses in this model.

  6. Dynamic Discounting • Dynamic discounting in Indiahas become a popular financial model in today's world proving to benefits to all the three parties involved the buyers, the sellers, and the financers. • Small and medium businesses are adopting this technique because of the easy cash flow and less of paperwork. • Through this technique, the buyers can extend their payment date and the supplier can get cash for the business, both at the same time.

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