Receivable Financing or Invoice Discounting

Invoice Discounting is an effective means of raising funds post-shipment. Through invoice discounting, sellers encash their invoices immediately on sale of goods and get paid early instead of waiting for the credit period to end.

The instrument is a win-win proposition for both sellers and buyers. Sellers gain immediate cash against goods delivered and can reinvest it to grow their business. On the other hand, buyers can pay as per credit terms agreed initially without affecting the seller’s working capital needs.

Veefin SCF Invoice Discounting Process Flow

Process flow

  • Seller can either convert a PO to an invoice or create a new invoice in Veefin SCF
  • Buyer accepts the invoice and uploads it in Veefin SCF in case of a semi-automated system. If not, Veefin SCF pulls out details of accepted invoices by directly integrating with Buyer’s ERP systems
  • Invoice details are automatically sent to the financial institution with the final disbursement amount auto-calculated as per sanction terms
  • Seller receives either the full invoice amount or the amount after deducting the interest upfront depending on sanctioned terms
  • On the due date, buyer makes good of the total invoice amount plus interest or just the invoice amount as per agreed terms
  • In case of a delay beyond the due date, penal interest charges are levied as per financial institution’s sanction terms either to the seller/buyer.

Distinctive Features


A seller can opt for Auto-financing of all invoices wherein Financial Institutions receive financing requests directly for all accepted invoices, provided sanctioned limits are available.


Veefin SCF provides mobile access to all functions allowing buyers and sellers to transact on-the-go

Customizable Interest parameters

Interest Bearing entities, Interest Collection (Upfront/rear-ended), Interest Sharing (Between Buyer and Seller), Interest posting intervals can be modified to suit your processes

Real-Time Reports

Custom-build dashboards and reports with updated data on invoices due, overdue invoices, interest accrual, limit utilizations and more

Automated Reconciliation

Reconciling part-payment of invoices, refund of interest on early payments, penal interest posting and settlments are automated in Veefin SCF

Contact Us

To download our brochure, please fill in the details below

To download our brochure, please fill in the details below

To download our brochure, please fill in the details below

To download our brochure, please fill in the details below