A Quick Glance

Platform Name	Value Proposition
KredX	Get quick access to working capital within 24 to 72 hours.
Receivables Exchange of India (RXIL)	Funds against approved invoices are credited within 48 hours.
Falcon	Receive up to 90% of invoice value within 3 business days.
Oxyzo	Avail of quick funds against unpaid invoices within 2 business days.
M1xchange	Get cash in exchange for unpaid invoices within 24 hours.
Invoicemart	Quick access to cash against unpaid invoices within 24 hours.
Credlix	Avail up to 90% of invoice value upfront in just 3 easy steps.
InvoiceTrades	Funds working capital requirements within 24 to 72 hours.

Invoice discounting platforms can be ideal when companies urgently need cash before the official invoice payment date. They enable businesses to gain quick funds from investors or other financial institutions via the platform at a discounted rate for their unpaid invoices.   

This effectively improves the company’s cash flow, enabling it to fulfil its working capital requirements, seize new opportunities, and ensure the smooth running of business operations. 

Invoice discounting platforms also provide flexible financing solutions to businesses. Businesses can choose which invoices they wish to discount and convert into cash. Furthermore, they facilitate access to funds without resorting to traditional loans, thus preventing debt from piling up in the business’s liabilities.   

Furthermore, invoice discounting platforms negate all the hassles related to waiting for unpaid invoices to be cleared, enabling companies to run their operations without asking customers to clear their invoices before the due date.  

However, to ensure that your business gets these benefits, you must know the best invoice discounting platforms in India in 2024. 

Top 8 Invoice Discounting Platforms in India in 2024 

KredX

KredX is one of the leading invoice discounting platforms in India, offering quick access to funds within 24 to 72 hours. The platform facilitates zero-liability funding by providing discounting services to all types of businesses that supply goods or services to large blue-chip companies. 

The onboarding process is completely paper-free, and the platform assesses the company’s eligibility and discount amount based on its creditworthiness.  

Features:

• Lowest invoice discount rates ranging from 1.2% to 2%
• Seamless digital onboarding enables speedy access to cash
• Self-serve module allows businesses to track their invoice status on the go

Pros:

• No upper sanction limit for a business’s invoices
• All transactions are conducted via escrow accounts
• The platform is an ISO 27001:2013 certified private entity ensuring secure storage of client data

Cons:

• Maximum invoice discounting tenure ranges up to 90 days only

Receivables Exchange of India (RXIL)

The Receivables Exchange of India Limited (RXIL) is a digital Trade Receivables electronic Discounting System (TReDS) platform that funds the working capital requirements of MSMEs in the manufacturing and service sectors. 

Businesses can seamlessly convert their receivables into cash without repaying the financier if the buyer defaults. This technology-first platform facilitates automated settlements and reconciliations, thus providing a seamless user experience.   

Features:

• Funds against approved invoices are credited within 48 hours
• Transparent bidding process enables companies to find the most suitable price for their invoices
• Offers a plethora of services like invoice discounting, factoring and reverse factoring

Pricing: One-time registration fee and an annual fee

Pros:

• Serves as a unified platform for sellers, buyers and financiers, enabling easy access to funds
• Platform backed by multiple financiers like the Small Industries Development Bank of India (SIDBI), NSE Investments Limited, SBI, ICICI Bank, and Yes Bank

Cons:

• Discounting services are limited only to micro, small, and medium-sized businesses

Falcon

Falcon is India’s leading P2P invoice discounting platform, enabling blue-chip companies to meet their immediate funding requirements. It caters to businesses across various sectors, such as manufacturing, logistics, wholesale, automobiles, and pharmaceuticals, enabling interested investors with diverse profiles to allocate capital according to their financial goals. 

Moreover, this platform eliminates the involvement of intermediaries like banks and other financial institutions, thus offering some of the best invoice values in the market.  

Features:

• Working capital requirements are fulfilled within 1 to 3 business days
• Invoice discounting tenure ranges from 30 days to 180 days
• Businesses can finance up to 90% of their invoice value

Pros:

• Super-fast automated processes, including e-voicing
• Dynamic auction process enables companies to get the best value for their invoices

Cons:

• Caters only to esteemed blue-chip companies

Oxyzo

Oxyzo is another top-ranking invoice discounting platform that provides financing solutions to businesses in the small and medium enterprises (SME) segment. An RBI-registered NBFC enables companies to get their unpaid invoices discounted across industries like logistics, consumer goods, automobiles, finished garments, and more. 

Moreover, businesses can apply for bill discounting in four simple steps, making it an ideal solution for immediate working capital requirements. 

Features:

• Get quick access to funds against unpaid invoices within 2 business days
• Avail invoice discounting tenures ranging from 60 days to 120 days
• Platform backed by leading financial institutions like Axis Bank, HDFC Bank, ICICI Bank, and more

Pros:

• Completely digital and paperless bill discounting facility 
• Get a plethora of other financing products like purchase finance, work order finance, vendor finance, and working capital term loans

Cons:

• Applicable only for businesses with 3+ years of vintage and at least ₹3 Crore annual turnover

M1xchange

M1xchange is an RBI-registered TReDS platform that enables MSMEs to avail fast and hassle-free invoice discounting in just 3 simple steps. The process is 100% digital, enabling companies to upload their unpaid bills and get instant funding right from their smartphones. 

Moreover, to empower MSMEs on a broader scale, M1xchange provides invoice discounting for businesses operating in various segments, such as infrastructure, retail, chemicals, agriculture, FMCG, metals, power, auto ancillary, and more. 

Features:

• Convert unpaid invoices to cash within 24 hours
• Invoice discounting interest ranges from just 7% to 10%
• Choose among 65+ financiers to get the best invoice discounting rates   

Pricing: Free Registration

Pros:

• Collateral-free non-recourse financing makes accessing funds hassle-free
• Off balance sheet funding enables keeping the company’s financials in a strong position

Cons:

• Focuses mainly on Indian SMEs

Invoicemart

Invoicemart is a leading digital Trade Receivables Discounting System (TReDS) platform. It is a joint venture between Axis Bank and mjunction that aims to resolve the delayed payment issues and credit challenges faced by MSMEs by acting as a meeting point for buyers, sellers and financiers. 

This enables businesses to quickly access cash against their unpaid invoices, thus fulfilling their working capital requirements. Also, no collateral is required for such transactions, negating the need for companies to add debt to their account books.   

Features:

• Offers an invoice discounting tenure ranging from 38 days to 180 days
• Get cash against unpaid invoices within 24 hours
• Access to multiple financiers facilitates competitive discounting rates

Pros:

• Transparent bidding process ensures that businesses get the best value for their invoices
• Offers both factoring and reverse factoring services

Cons:

• Focuses mainly on MSMEs and corporate buyers

Credlix

Credlix is an international invoice discounting platform that offers quick access to cash against unpaid bills in both domestic and export segments. It has offices in India, USA, UAE, Singapore, and Mexico, along with partnerships in 90 other nations, thus serving as an ideal solution for MSMEs operating in the export segment. 

What’s more, this platform does not have a fixed interest rate for invoice discounting. It completely depends upon factors like market conditions, the business’s trustworthiness and creditworthiness, provider, and more.     

Features:

• Avail up to 90% of the invoice value upfront, with the remaining 10% on the bill’s due date
• Working capital requirements are funded within 24 hours 
• Get invoices discounted online in just 3 easy steps

Pros:

• Caters to invoices across various industries like electronics, pharma, apparel, and automotive
• Offers a plethora of other services like import financing, early payment, and PO finance

Cons:

• Caters mainly to MSMEs

InvoiceTrades

InvoiceTrades is a tech-enabled invoice discounting platform that enables MSMEs to get access to quick funds without resorting to traditional debt. It offers end-to-end services ranging from invoice listing to fund disbursal, providing off-the-record funding that has zero impact on the company’s balance sheet. 

The platform keeps both the seller and the investor in the loop at every step of the process to maintain high transparency. Also, InvoiceTrades is backed by a reputed NBFC with years of experience in invoice discounting and handles every transaction with the highest level of security.    

Features:

• Working capital requirements are funded within 24 to 72 hours
• Invoice discounting tenure ranges from 30 days to 12 months
• Also enables companies to purchase unpaid invoices of other businesses

Pros:

• Minimum eligibility criteria requiring 2 years of business vintage and at least 2 Crore business turnover
• Discounting process is completely paperless and gets done in just 6 steps

Cons:

• Services are limited only within India

Future Trends in Invoice Discounting in India

As invoice discounting becomes an increasingly popular method of solving working capital deficiencies, experts predict AI and ML Models will be used more extensively in this field. 

Such innovations can facilitate data-driven credit assessment, providing more scope to previously underserved businesses. Additionally, these technologies can make the overall discounting process much faster, cost-effective and accessible to a wider spectrum of businesses. 

According to a survey, almost 78% of Indian MSMEs face difficulty accessing enough working capital to keep their daily operations running. Thus, for aspiring players in the invoice discounting market, there are ample long-term growth prospects.

However, to be counted among India’s best invoice discounting platforms in 2024, it is crucial to partner with a reliable payments platform to ensure seamless transactions. 

Try Decentro’s payment APIs. 

Leverage our InstaEscrow APIs to benefit from automated fund transfers and hassle-free reconciliation while adhering to the industry’s regulations. Also, you can use our KYC verification APIs to streamline client onboarding and reduce customer onboarding costs by up to 80%. Connect with Decentro and check out what more we offer to take your business to the next level!

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