Question 1

What is Purchase Invoice Discounting?

Accepted Answer

Purchase Invoice Discounting is short-term financing linked to supplier invoices. Instead of paying an eligible supplier entirely from your own cash, the approved invoice is financed according to the agreed structure and you repay the financier on the agreed date.

Question 2

How does Purchase Invoice Discounting work?

Accepted Answer

You purchase goods or raw materials from a supplier and receive an invoice. You submit the eligible invoice for assessment. Once approved, the supplier is paid as per the financing arrangement, and your business repays Credlix according to the approved terms.

Question 3

Who can apply for Purchase Invoice Discounting?

Accepted Answer

Manufacturers, distributors, traders and other eligible B2B businesses that regularly purchase goods, raw materials or inventory may apply. Approval depends on factors including the business profile, transaction history, financials, banking behaviour and underlying invoices.

Question 4

What types of purchases can be financed?

Accepted Answer

Eligible purchases can include raw materials, inventory, components and other business inputs. The exact transaction and invoice must satisfy Credlix eligibility and credit criteria.

Question 5

Is Purchase Invoice Discounting the same as Purchase Finance?

Accepted Answer

The terms are often used for closely related financing structures where funding is linked to business purchases or supplier invoices. The precise structure can vary depending on the financier and transaction.

Question 6

How is Purchase Invoice Discounting different from Sales Invoice Discounting?

Accepted Answer

Purchase Invoice Discounting helps finance invoices your business needs to pay to suppliers. Sales Invoice Discounting helps unlock cash from invoices your customers still need to pay to you.

Question 7

How is Purchase Invoice Discounting different from a business loan?

Accepted Answer

Purchase Invoice Discounting is linked to an underlying supplier transaction or invoice. A business loan is typically a broader credit facility that may be used for multiple business purposes.

Question 8

Do I need collateral?

Accepted Answer

Eligible invoice-based facilities may be available without hard collateral. Requirements depend on the applicant financial profile, facility structure and Credlix assessment.

Question 9

How much funding can my business receive?

Accepted Answer

The approved amount depends on factors such as your purchase volumes, financial profile, banking history, underlying transactions and credit assessment.

Question 10

How is my funding limit decided?

Accepted Answer

Credlix may assess business turnover, financial performance, GST data, banking behaviour, existing liabilities, transaction history, supplier relationships and the invoices being financed.

Question 11

How long can I take to repay?

Accepted Answer

Repayment terms depend on the approved facility and underlying transaction. They are typically structured around the business procurement and operating cycle.

Question 12

Who receives the money?

Accepted Answer

Under a Purchase Invoice Discounting structure, funding is linked to the eligible supplier transaction. Payment is generally made according to the approved structure rather than being treated as unrestricted cash borrowing.

Question 13

Can I finance invoices from more than one supplier?

Accepted Answer

Potentially, yes. Eligibility for individual suppliers and invoices depends on the approved facility and transaction assessment.

Question 14

Can I finance every purchase invoice?

Accepted Answer

Not necessarily. Each facility and transaction is subject to eligibility requirements, documentation and credit assessment.

Question 15

What documents are required?

Accepted Answer

Typical documents may include GSTIN, PAN, KYC, bank statements, financial statements, GST records, details of existing borrowings and documents supporting the supplier transaction.

Question 16

How long does approval take?

Accepted Answer

Turnaround time depends on the business, completeness of documentation and transaction assessment.

Question 17

What does Purchase Invoice Discounting cost?

Accepted Answer

Pricing depends on factors such as the business profile, financing amount, transaction, repayment period and risk assessment. Applicable charges and terms are communicated during the approval process.

Question 18

Can a new business apply?

Accepted Answer

Eligibility depends on business vintage and other underwriting criteria. Businesses can submit their details to determine whether the facility is suitable.

Question 19

Can Purchase Invoice Discounting help with seasonal purchases?

Accepted Answer

Yes, it may be useful when a business needs to increase inventory or raw-material purchases before a seasonal sales period but expects customer collections later.

Question 20

How do I apply for Purchase Invoice Discounting with Credlix?

Accepted Answer

Start by entering your GSTIN, mobile number and indicative funding requirement. Credlix can then assess your business and advise on the next steps.

	Purchase Invoice Discounting	Sales Invoice Discounting	Business Loan
Use it when	You need to pay suppliers	Customers haven’t paid you yet	You need general business funding
Linked to	Supplier invoice	Customer invoice	Business credit
Helps you	Fund purchases	Unlock receivables	Fund broader business needs

Pay Suppliers on Time with Purchase Invoice Discounting.

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Don’t Let Supplier Payments Delay Your Next Order.

Where Your Cash Goes in a Typical Cycle

Pay Suppliers Now. Repay Later.

How Much Cash Is Tied Up Between Paying Suppliers and Getting Paid?

How Does Purchase Invoice Discounting Work?

When Does Purchase Invoice Discounting Help?

Large Orders:

Supplier Payments:

Rising Demand:

Built Around Real B2B Supply Chains.

Which Financing Fits Your Cash-Flow Gap?

Already Sold and Waiting to Get Paid?

See Purchase Invoice Discounting in Action.

You use ₹50 lakh from your own working capital.

An eligible portion of the supplier invoice may be financed.

Is Purchase Invoice Discounting Right for Your Business?

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