The fintech sector has been one of the early adopters of this new-wave of technology. Today, fintech lenders are able to venture into segments previously deemed high-risk by financial institutions and banks. This is yielding positive results in several critical areas, such as MSME lending. Other emerging fintech platforms have been successful in bridging the gap between lenders and borrowers, utilising technology in automating policy checks, verifications, eKYC, amongst other governing protocols. While concepts like invoice discounting can hardly be termed as the “new kids on the blocks,” fintech players are gradually disrupting the status quo by adopting Artificial Intelligence and blockchain in the field. With artificial intelligence, fintech platforms have developed their algorithms that work round-the-clock to maximise the gains for corporate buyers and vendors.
The technology incorporates various factors to optimise the process; this may include the type of industry, location, total number of invoices that have been accepted or rejected and the rate of discount acceptance and rejection in the given industry.
Listed here are new-age dynamic discounting platforms which are able to assist corporate buyers and suppliers in optimising the supply chain by providing access to working capital for suppliers and cost savings for the corporate buyers.
Priority Vendor is a supply chain focused fintech company and runs India’s largest dynamic discounting platform. The solution bridges the requirement of higher margins for a large corporate and the need for easy access to working capital for its suppliers, in an end-to-end digital manner. Priority Vendor’s proprietary machine learning algorithm discovers the optimum cash discount a supplier is willing to offer for early payment of approved invoices. This helps the corporate increase EBITDA and return on capital in a risk-free way and helps suppliers get access to liquidity as and when they need it. Moreover, Priority Vendor even takes care of the accounting entries to facilitate the early payment, through their arms-length ERP linkage with corporates!
Indifi Technologies is a Gurgaon-based platform for enabling debt-financing for small businesses. It aims to substantially improve the experience for borrowers regarding the speed of approval and disbursement, the convenience of the loan process, the relevance of the loan product to their business needs, and finding the best rates in the market. Driven by the idea of expanding access to MSME financing in India, Indifi has emerged as an enabler for start-ups and small businesses to seek seamless access to funding.
C2FO is the most efficient early payment platform with the largest return for corporates and the best rate for their suppliers. Multinationals and leading Indian corporations with supply chains across the globe use C2FO to increase their operating income while simultaneously producing vital working capital flows to their supply chains. C2FO sets its foot in India in 2016 to help optimize working capital liquidity. C2FO is a B2B offering, and as such, targeting Suppliers of large corporates. Often, these Buyers and Suppliers are in the rural regions of India. C2FO is a simple application that requires very little technical understanding. Moreover, the online registration process needs no paperwork, thus removing any barriers to speedy adoption.
KredX was built to help businesses achieve their short-term working capital needs by discounting their unpaid invoices (raised against blue chip companies) to a network of buyers/financiers including banks, NBFCs, wealth managers, and retail investors. The platform helps organisations maintain cash flow by unlocking the cash that is tied up in their invoices. It also offers financiers access to risk-mitigated, high-yield, and short-term investment opportunities that are not tied to the uncertainties of the stock market.
(This listicle has not been compiled or written by DataQuest Editors)