Invoice discounting is the practice of using a company's unpaid invoices to raise working capital & fulfil its financial needs. Traditionally, financial institutions including banks and NBFCs have been discounting invoices for MSMEs. Invoice discounting involves transfer of rights on an asset (invoice) from the seller (i.e. business) to the financier (i.e. investor) at an agreed value. Learn More

KredX provides a marketplace/platform for business owners to sell and investors to purchase invoices raised on blue chip companies. Investors looking to invest money for a short term (30-90 days on an average) can earn attractive returns on their investment by purchasing these future cash flows. It combines the best in class technology experience with credit underwriting & data analytics capabilities to create a brand new investment asset class.

Register yourself with us on our website as an investor and we will help you park your investments in this unique asset class with varying maturity periods at an attractive risk-adjusted rate.

Individual resident investors

HUF / Proprietorship registered in India

Institutional investors

Banks, NBFCs and other Financial Institutions

NRI investors (Provided you have an NRO account and comply with basic predefined KYC guidelines, i.e., PAN card and valid Indian address proof)

As of now you can invest a minimum of INR 3 lakhs per deal. This has been set to ensure that you have sufficient liquidity to invest in an alternative investment class and the required risk appetite for the same.

Signing up on KredX is very simple. SImply provide your contact details on our website and our relationship managers will contact you to complete the registration process. As a part of our KYC norms, we will need a small set of documents to ascertain your investor's status. Once those documents are received and vetted, you will receive an email from us notifying you of your account post successful onboarding.

Log into your netbanking/mobile banking app > Click on Add Payee > Select Other Bank Accounts > Enter the details > Save/Confirm the same.

Note: ICICI bank account holders are requested to add the escrow account as an external bank account.

KredX does not play a role in deciding the discount rates of the invoices. The returns on your investment will be governed by market forces on the basis of demand and supply economics. Expected yield corresponding to deals will be made available to investors before any purchase, this ensures that investors know their returns before initiating the fund transfer.

KredX provides a technology platform to connect sellers of invoices and investors and execute transactions between them. KredX provides certain tools, for example - credit report of the seller, enterprise report (blue-chip company) among others - to make a calculated investment decision.

KredX does not guarantee any fixed return to its investors and the investment would be subject to the traditional market risk associated with invoice discounting. Please refer to the various reports made available on the platform during deal purchase for details.

No, as an investor, you can decide on the amount you would want to invest in any invoice. You can either fund partially or fully an invoice.

Tenure of the investment is linked to the invoice payment date. Every invoice will have a different maturity period. We have seen that historically it has ranged from 30 days to 90 days.

Invoice Financing is a very niche product in the asset based financing arena. It carries minimal undue risk while generating superior return on investments. In advance economies, it has emerged as a major form of investment. KredX's Invoice Financing platform ensures a higher short-term yield for its investors. Our conservative and ever evolving risk management policies minimizes the risk of investing for our investors. Our experience in MSMEs financing space helps us in catering only to the lowest risk segment within the space.

KredX is a ISO 27001:2013 certified private entity that deals with secure information from our clients. The ISO certification is further validation of the high standards we follow.

We have an established due diligence process in place backed by manual verification of the parties. We are also very selective in choosing the people with whom we do business.

The borrowers are obliged legally to pay back the amount owed to the investors irrespective of whether the invoice is paid by their customer. In the remote case of a default by the customer, we will facilitate legal help for them and will provide assistance in recovering the loss. We have also tied up with various collection agencies to recover the amount due from the business in case of default.

Any investment comes with its own associated risk. The risk could be total capital erosion. However, we have taken several steps to mitigate the risk – both strategically and operationally:

Comprehensive risk management framework – Detailed credit analysis of sellers and their financials at onboarding

Verification process - Invoices are verified physically. Moreover, invoices are restricted to only blue-chip companies.

Strong legal framework – All sellers are required to sign our legal agreements to ensure our investors are well protected.

If a blue-chip company does not pay the invoice money in the future – the small business is still liable to pay the money owed to the investor.

If the small business collapses, the blue-chip company would still pay the invoice money and this will be paid directly into the escrow account which will be transferred to the investor.

KredX is a tech platform and it does not assume any credit risk on behalf of the investors.

The KredX business model is one where investors do not face any execution risk. Our 360° credit risk analysis system takes place at multiple stages.

Business-Onboarding Stage We follow a three-pronged approach that is dependent upon the business, the enterprise and their relationship to arrive at a KredX Score for every business.

Business:

1) Credit credentials (Credit reports of company and individual reports of directors)

2) Financial Health & Stability (All financial and company documentation)

Enterprise:

1) Credit Rating of Enterprise

2) Fundraising Ability

3) Liquidity

4) Market News

Relationship Between Business and Enterprise:

1) History of working relationship

2) Payment timeline

Post Evaluation Stage

Legal mechanisms such as undertakings, bills of exchange, review of legal proceedings and Board for Industrial and Financial Reconstruction (BIFR), etc. involving the vendor and the enterprise.

Invoice Listing Stage

Verification of every invoice before listing on the platform

Invoice Purchase Stage

KredX monitors the security of every transaction through Escrow Accounts (in collaboration with ICICI Bank) for both Businesses and Investors, separately.

In addition to this, all the important data points after evaluation by the KredX risk team are summarised in different reports at the vendor, enterprise and deal level.

KredX in collaboration with their partner bank has facilitated opening of an escrow account for each individual member. All transfer of funds happen through these escrow accounts. In case of liquidation of KredX due to any financial/legal reason, money in a member's escrow account will be returned to the respective owners immediately. Money involved in the process will not be transferred to KredX's account at any stage (except service fees and government taxes, etc.).

Alternative financing refers to financing verticals outside of traditional financing and banks such as loans as a means to circumvent longer documentations & processes, red tape, and gain quicker access funds. Alternative financing options are usually available online, examples of which are invoice discounting, crowdfunding, invoice factoring, etc. Learn More...

Post the 2009 economic crisis, the need for investment avenues with higher returns and shorter tenures arose, paving the way for alternative investments. Alternative investments can be defined as any form of investment that falls outside of conventional banking and stock market investment such as invoice discounting, peer-to-peer lending, etc. You can read more about it here. Learn More...

Invoice discounting is the practice of using a company's unpaid invoices to raise working capital & fulfil its financial needs. Traditionally, financial institutions including banks and NBFCs have been discounting invoices for MSMEs. Invoice discounting involves transfer of rights on an asset (invoice) from the seller (i.e. business) to the financier (i.e. investor) at an agreed value. Learn More...

Most businesses opt for financing options available in the market to tide over lean periods, the most obvious of which is a business loan from banks or financial institutions that help businesses with their short-term operational costs, expansion goals, upgrading equipment, etc.

However, gaining access to loans in India is rather cumbersome due to a number of reasons and the time-consuming processes involved.

The birth of alternative financing solutions, and the revival and modernisation of an age-old financing method called invoice or bill discounting has helped address these problems. Invoice or bill discounting is a practice where businesses sell their unpaid invoices to raise working capital. Not only is it easier to access funds through invoice discounting, but is also quicker when compared to business loans with businesses gaining access to around 80% of their invoice value in just 2-3 days. Click here to learn more.