What Is Invoice Discounting?
Invoice discounting is a financing arrangement that may allow an eligible business to access funds against qualifying unpaid commercial invoices rather than waiting for the buyer's payment date. The financier evaluates the invoice, buyer, business profile and other applicable conditions.
Depending on the arrangement, eligible businesses may explore funding of 75% to 90% of the invoice value. The actual amount, fees, repayment obligation and maturity terms are determined by the relevant financier and agreement.
LoansBazaar India helps applicants understand financing options, prepare enquiries and explore potentially suitable lender channels. We do not guarantee funding, a particular interest rate or approval.
Explore This Guide
1. Commercial Banks (Public & Private)
| Bank Name | Funding / Loan Amount | Tenure | Interest / Discount Rate | Processing Fee | Apply Now |
|---|---|---|---|---|---|
| State Bank of India (SBI) | ₹42,500 se ₹10 Lakh (per unit) | Up to 90 din | 8.50% – 11.50% p.a. | Nil se 0.50% | Apply Now → |
| Bank of Baroda | ₹10 Lakh se ₹10 Crore+ | 30 se 90/120 din | Repo/BRLLR-linked (9.00% – 12.50% p.a.) | 0.25% – 1.00% | Apply Now → |
| HDFC Bank | ₹25 Lakh se ₹25 Crore+ | 30 se 180 din | 9.50% – 14.50% p.a. | 0.50% – 1.50% + GST | Apply Now → |
| ICICI Bank | ₹10 Lakh se ₹20 Crore+ | Up to 180 din | 9.75% – 15.00% p.a. | Up to 1.50% + GST | Apply Now → |
| Axis Bank | ₹10 Lakh se ₹15 Crore+ | 30 se 120 din | 10.00% – 15.00% p.a. | 0.50% – 2.00% + GST | Apply Now → |
| Kotak Mahindra Bank | ₹10 Lakh se ₹10 Crore+ | Up to 180 din | 10.50% – 16.00% p.a. | Up to 2.00% + GST | Apply Now → |
| IDFC FIRST Bank | ₹15 Lakh se ₹5 Crore+ | 30 se 120 din | 11.00% – 16.50% p.a. | 0.50% – 1.50% + GST | Apply Now → |
2. Leading NBFCs & Fintech Lenders
| NBFC / Platform | Funding / Loan Amount | Tenure | Interest / Discount Rate | Processing Fee | Apply Now |
|---|---|---|---|---|---|
| Bajaj Finserv | ₹5 Lakh se ₹5 Crore+ | 30 se 180 din | 12.00% – 18.00% p.a. | 1.00% – 2.50% + GST | Apply Now → |
| Tata Capital | ₹10 Lakh se ₹5 Crore+ | 30 se 120 din | 11.50% – 17.00% p.a. | 0.50% – 2.00% + GST | Apply Now → |
| Oxyzo Financial | ₹10 Lakh se ₹25 Crore+ | 30 se 120 din | 11.00% – 16.00% p.a. | 0.50% – 1.50% + GST | Apply Now → |
| Lendingkart | ₹1 Lakh se ₹2 Crore | 30 se 90 din | 14.00% – 22.00% p.a. | 1.50% – 3.00% + GST | Apply Now → |
| Indifi | ₹1 Lakh se ₹50 Lakh | 30 se 120 din | 13.50% – 20.00% p.a. | 1.00% – 2.50% + GST | Apply Now → |
3. Small Finance Banks (SFBs)
| Small Finance Bank | Funding / Loan Amount | Tenure | Interest / Discount Rate | Processing Fee | Apply Now |
|---|---|---|---|---|---|
| AU Small Finance Bank | ₹5 Lakh se ₹3 Crore | 30 se 120 din | 12.00% – 17.50% p.a. | 1.00% – 2.00% + GST | Apply Now → |
| Equitas Small Finance Bank | ₹5 Lakh se ₹2 Crore | 30 se 90 din | 12.50% – 18.00% p.a. | 1.00% – 2.00% + GST | Apply Now → |
| Ujjivan Small Finance Bank | ₹3 Lakh se ₹1 Crore | 30 se 90 din | 13.00% – 19.00% p.a. | 1.00% – 2.50% + GST | Apply Now → |
Note: Each Apply Now button opens the LoansBazaar India enquiry page. It does not submit a direct application to the named bank or lender, and does not imply a partnership or guarantee of approval.
MSME RECEIVABLES FINANCING
4. RBI-Registered TReDS Platforms
TReDS (Trade Receivables Discounting System) platforms facilitate financing of eligible trade receivables, including invoices or bills drawn on eligible buyers. For qualifying MSMEs supplying large corporates, PSUs or government entities, this can be an alternative channel to explore.
Receivables Exchange of India
A.TREDS
Trade receivables financing platform
The rates and fees above are indicative figures supplied for this page, not confirmed live quotations. Actual auction outcomes, platform charges, buyer eligibility and registration requirements may differ. Verify current regulatory status and terms directly with each platform.
Eligibility & Documents Required
Requirements vary by lender, financing structure, buyer and invoice. Businesses may be asked for some or all of the following:
Business Profile
- Business registration details
- PAN and applicable KYC
- GST records, where applicable
- Business bank statements
Invoice Documents
- Outstanding commercial invoices
- Purchase orders, where applicable
- Delivery or service completion evidence
- Buyer details and payment history
Financial Information
- Financial statements, if requested
- ITR and GST returns, where requested
- Receivables and ageing details
- Additional lender-specific information
How Invoice Financing Works
Supply goods or services and issue a valid invoice to the buyer.
Provide invoice and business information required for assessment.
The financier reviews eligibility, buyer risk, costs and terms.
Funding and repayment follow the executed financing agreement.
Explore Other Loan Products
LoansBazaar India also provides enquiry and application assistance across multiple financing categories. Choose a product to explore through our website or submit an enquiry.
Frequently Asked Questions
1. How much funding can a business receive against invoices?
Funding may be assessed as a proportion of eligible invoice value. The 75% to 90% range mentioned on this page is indicative, not a guaranteed offer or a universal lender policy.
2. What is the repayment tenure?
The financing period depends on the invoice maturity, buyer terms and the agreement with the financier. The tables above reproduce the supplied indicative ranges, which must be verified.
3. What is the difference between recourse and non-recourse financing?
Under recourse arrangements, the business may remain liable if the buyer fails to pay. Non-recourse arrangements may transfer specified risks under contract, but exclusions and conditions apply. Review the actual agreement carefully.
4. Are the interest rates and processing fees final?
No. The listed figures are indicative inputs supplied for this page and have not been independently verified as current offers. Actual pricing, taxes and fees depend on the lender and facility.
5. Does submitting an enquiry guarantee funding?
No. An enquiry is only an initial step. Funding remains subject to lender availability, verification, eligibility, documentation and final approval.
Explore Invoice Financing Options
Share your business financing requirement with LoansBazaar India to begin an enquiry and understand potential next steps.
Email: info@loansbazaarindia.com
Website: loansbazaarindia.com
The lender names, funding amounts, tenure, interest or discount rates and processing fees on this page are indicative figures supplied for comparison and have not been independently verified as current, universally available invoice-discounting products. Product availability and terms may differ by borrower, buyer, invoice, facility type and lender policy. GST and other charges may apply where specified. A listed bank, NBFC or platform is not represented as having approved, endorsed or partnered with LoansBazaar India. TReDS participation, platform registration and current terms should be verified through the relevant official source. LoansBazaar India provides loan enquiry and application assistance; it does not guarantee sanction, disbursement, interest rates or eligibility. The final decision rests with the relevant financier. Review all applicable costs, repayment obligations, recourse terms and contractual conditions before accepting an offer.