VyaparCred Resources
Finance explained

Working capital without the wait

Choosing between PO Finance, Invoice Discounting and Vendor Payment.

Quick answer

Use PO Finance when you need to pay suppliers before a client pays you (funds the order up front, up to 100%). Use Invoice Discounting when work is delivered but the invoice is unpaid (advances up to 100% of the receivable). Use Vendor Payment Programs when you want to pay suppliers now and settle on 30/60/90-day terms. The right choice depends on where in the order cycle your cash gap sits.

Key takeaways
  • The three products solve three different moments: before shipment, after invoicing, and across supplier terms.
  • PO Finance funds the buy; Invoice Discounting unlocks the receivable; Vendor Payment stretches your supplier terms.
  • None requires diluting equity, and decisions come in around 48 hours.
  • Most buyers use a combination across a single project.

Match the product to the moment, not the other way round

The mistake buyers make is asking which product is best. There is no best, there are three tools for three different points in the cash-flow cycle. Ask instead: where is my gap? Before I ship, after I invoice, or in the terms I owe my suppliers? Answer that and the product chooses itself.

Your situationProductWhat it does
Won an order, must pay supplier firstPO FinanceFunds the order up to 100%, decision in 48h
Delivered, waiting on client paymentInvoice DiscountingAdvances up to 100% of the invoice in days
Want to pay suppliers now, settle laterVendor PaymentPay now, settle on 30/60/90-day terms

Compare the financing programs side by side

Before you ship: PO Finance

PO Finance funds the accepted purchase order up to 100% of order value, with a 48-hour decision. Use it the moment you have won an order and need to pay suppliers before the client pays you. It funds the BOM directly, and you repay from sale proceeds on your cycle.

This is the workhorse product for the classic EPC squeeze, cash committed to suppliers long before the client milestone lands.

After you invoice: Invoice Discounting

Invoice Discounting advances up to 100% of an unpaid invoice, turning a 60-90 day receivable into cash in days, with no collateral beyond the receivable itself. Use it when the work is done and delivered but the client has not paid.

The distinction from PO Finance is simple: PO Finance funds the buy before it happens, invoice discounting unlocks cash you have already earned but not yet collected.

Across your supplier base: Vendor Payment Programs

Vendor Payment Programs pay your suppliers immediately while you settle on 30/60/90-day terms. Use it to protect priority status with key suppliers and strengthen pricing over time, without straining your own cash.

For import orders, any of the three pairs naturally with Trade Finance & LC, which locks the INR rate at issuance so a currency swing does not erode the deal between order and delivery.

Using them together

On a real project the three are not mutually exclusive. A typical sequence: PO Finance to fund the order and pay overseas suppliers, then Invoice Discounting on the client receivable once you have delivered, with a Vendor Payment Program running in the background to hold priority with your most important suppliers. Each closes a different part of the gap.

Run your next order through the financing options to see which combination fits, or create an account to start.

The VyaparCred solution

Get all three products on one rail

On VyaparCred the three products sit on one rail, so you can match each to its moment on a single project, PO Finance to buy, Invoice Discounting to unlock the receivable, Vendor Payment to hold supplier priority.

Decisions in around 48 hours, structured against the transaction, not your balance sheet.

Combine products across one project without separate applications or lenders.

Pair any of them with Trade Finance & LC to lock the INR rate on imports.

Common questions

What is the difference between PO Finance and Invoice Discounting?
PO Finance funds an order before shipment; Invoice Discounting advances cash against an invoice after delivery. One funds the buy before it happens, the other unlocks a receivable you have already earned.
When should I use a Vendor Payment Program?
When you want to pay suppliers immediately to hold priority status and improve pricing, while settling on 30, 60 or 90-day terms yourself. It stretches your side of the cycle without straining the supplier relationship.
Can I use more than one financing product on the same project?
Yes. Many buyers use PO Finance to source, Invoice Discounting on the resulting receivable, and a Vendor Payment Program to manage supplier terms, all on one project.
Do any of these require collateral?
Invoice Discounting requires no collateral beyond the receivable itself. The products are structured against the transaction, not your balance sheet, so they do not tie up other assets or dilute equity.
How fast are financing decisions?
Around 48 hours for PO Finance, with invoice advances funding in days after verification. The speed is what keeps procurement moving rather than waiting on capital.
Which product is cheapest?
Cost depends on the structure and tenor, not the product name. The cheaper choice is the one matched to your actual gap, using PO Finance when you really need invoice discounting (or vice versa) is what makes financing expensive.
AC
Written by

Abhiraj Chakrabarti

Co-Founder, VyaparCred

Second-time founder with a prior D2C exit and 12+ years at the intersection of capital, technology and underserved markets. Building credit infrastructure for India's clean energy transition.

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