Importance of bill discounting for companies across all sectors

1. Why Bill
Discounting is
Important

2. What Is Bill
Discounting
Bill Discounting is the process of
selling a bill at a discount to a
third party while still owing the
full amount to the original
lender. The entity that purchases
the bill will then collect the
full amount owed, plus interest,
from the debtor before paying back
the original lender

3. There are several reasons to avail bill
discounting loan.
1.It is a form of financing that can help you in
reducing your working capital requirements and
improve your liquidity position.
2.It helps in improving the cash flow of the company
by providing an immediate funding option to the
borrowers.
3.It helps in reducing the cost of funds by removing
the requirement of getting credit rating, collateral
and security.
4.There is no need to get approval from any external
agency like banks or any financial institution for
availing bill discounting loan since it does not
require any kind of pre-qualification process before
sanctioning a loan amount to its customers like other
forms of financing do.

4. Bill discounting goals
Bill discounting goals are one of the most important
financial measures that a company can track. They help
you to understand how much your cash flow is being
affected by your current business practices, and they
allow you to make informed decisions about where to
direct your energy and resources.
Bill discounts are when a company sells its invoices
for less than their face value in order to receive
immediate cash. This can be a good way for small
businesses with high volumes of low-dollar transactions
to manage their cash flow, but it's not always a good
idea for larger companies with higher costs associated
with their products or services.
The amount of money that a company saves by receiving
an invoice discount depends on their payment terms and
how long they have been doing business with the
customer who issued the invoice. As such, bill

5. Make a profit: This is the most important goal for any
business. A business should always be profitable so
that it can continue to operate and grow. The profit
margin is a key indicator of how well your business is
doing, and if it's decreasing over time or flatlining,
you should consider changing the way you do things to
increase sales or reduce expenses.
Goal #1

6. Cover your costs: If you don't cover your costs, then
you're not making money—you're losing money! Even with
a high profit margin, if your overhead is too high or
you have too much debt, then you'll end up losing money
over time unless you take some kind of action (such as
firing employees or cutting back on marketing).
Goal #2

7. Keep debt low: Debt isn't necessarily bad if it's being
used to fund growth and expansion; however, if there's
too much debt in relation to assets like equipment or
inventory then that could cause problems down the road
when it comes time to pay off those loans (or worse
yet—foreclose on assets).
Goal #3

8. M1xchange is a bill discounting platform that helps
small businesses secure funding from their outstanding
invoices. We provide a simple and easy way to do this
by connecting you with investors who are looking for a
return on their investment. Our investors are eager to
invest in your business because they know you'll be
paying them back within the agreed time frame, which
means they don't have to worry about taking on risk.
This means they can give you the money you need without
having to go through a lengthy application process or
fill out a ton of paperwork. All you have to do is
provide us with your invoices and we take care of
everything else!
Why Choose M1xchange

9. Thank You