A. At KredX, we follow a stringent multi-pronged Risk Mitigation process that minimises risks involved at multiple levels basis the risk evaluation of the business, the enterprise, and their relationship status. We make sure to carefully look through in detail every business and its relationship with the enterprise while assessing the borrowers’ financial stability. Based on the above criterion, a KredX score (which has been further refined to take into account for more parameters) is generated to help investors take informed decisions during deal purchase. You can find all this information and more details about our risk mitigation process here.
A. Transactions are routed via KredX-operated escrow account. This provides an added layer of security against credit risk, as a result of the discounting mechanism. We currently work with ICICI Bank as our banking partner for all transactions.
A. As India’s leading Integrated Cash Flow Solutions Provider, KredX helps corporates, startups, SMEs, and large enterprises with their cash flow challenges. However, keeping the best interest of our investors in mind, we only discount invoices raised to blue-chip companies that have credibility in terms of funding from large investors with good corporate governance and good financials and payment history.
A. When the enterprise makes a payment to its vendor who has availed KredX’s invoice discounting services, the amount gets transferred to a third-party escrow account. The amount in the escrow is verified by KredX with the respective invoice of the vendor to ensure that there is no mismatch between them and then transferred to the investors.
A. In KredX Score 2.0, we have in place a dynamic scoring system which takes into account the history of the portfolios of vendors/enterprises. The dynamic score is intended to help our investors make a well-informed decision when investing on the platform.
A. This forms the very crux of our risk mitigation process, as mentioned above. We employ strict scrutiny right from the time a vendor approaches us until a vendor is onboarded after the satisfactory screening of financials and its relationship with the enterprise it supplies to. A tri-partite undertaking is created and signed, involving KredX, the vendor, and the corporate. Among other clauses, this undertaking ensures that the enterprise will only credit the invoice amount to the Escrow account created by KredX on the vendor’s behalf unless otherwise supported by a NOC issued by KredX. Once the vendor has been onboarded onto the KredX platform, we verify the invoices presented by the vendors to ensure that they are genuine and unpaid with confirmation of the amount, the payment status and various other details of the invoice directly from the enterprise.
A. Deal reports are made available on the KredX dashboard for use at the time of deal purchasing. These reports provide valuable insights into the deals, allowing investors to make a well-informed decision, and we would request all investors to carefully read and assess the information made available to them.
A. Thank you for your suggestion. We currently do not have a reference document at the moment but we will work on getting this created to help our patrons.
A. KredX’s offering helps vendors/suppliers of enterprise ease their working capital requirements. This, in turn, eases the entire supply chain in the business ecosystem. Deals are listed only after the undertaking is signed by the enterprise, and as such the enterprise is aware of the arrangement of the transaction.
A. The KredX Score 2.0 takes into consideration the past repayment history, and in case of any delays in the past, the subsequent score will be impacted, indicating an inconsistent payment history.
A. Different banking platforms have different functionalities and ways of getting the account payee added. Please be rest assured that there is no issue wrt to transactions to the KredX virtual account.
A. The same is mentioned in each agreement and we strongly advise patrons to read the agreements, reports, and all fineprints carefully before investing on the platform.
A. As an end-to-end technology platform, we have made available all these details for our patrons. Investors can review the deal details, transaction note, and deal agreement once the deal is booked. Investors can also access the transaction invoice and repayment schedule once the deal is repaid.
A. Investors can download the Transaction and Repayment summary report to fetch the deal details. For instance, if a deal is listed for 70 lacs, it will be mentioned on the platform as an upcoming deal. Investors can see that information there, however, not in past deals.
A. Yes, we are working on something on these lines to help patrons utilise their idle money. We will keep you updated regarding the same.
A. We provide both; gross and net returns as Expected Gross Yield and Expected Net Yield in the deal details on your dashboard.
A. Yes, you can watch the webinar recording here.
A. Yes, we are working on something on these lines to help patrons utilise their idle money. We will keep you updated regarding the same.
A. Yes, all parameters have been taken into consideration to design the new deal report for better understanding.
