Invoice discounting is the practice of using 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.
KredX is an online invoice discounting platform where business owners get an
opportunity to raise funds for their working
capital needs at attractive terms by selling their unpaid invoices raised on blue
chip companies. KredX aims
to remove operational inefficiencies around the invoice discounting space by
extensively using technology and
its data analytics & credit underwriting capabilities.
KredX provides a marketplace/platform for business owners to sell and investors
to purchase invoices raised on blue chip
companies. It combines the best in class technology experience with credit
underwriting & data analytics
capabilities to create a brand new investment asset class.
Business-owners looking for advance on their invoices, raised on blue
chip/creditworthy institutions, can use our platform
to sell these unpaid invoices at attractive rates. Register
yourself with us on our website as a business and we will help you sell your
invoices at competitive rates.
Investors looking to invest money for short term (30-90 days on an average) can
earn attractive returns on their investment
by purchasing these future cash flows. 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 providing attractive risk-adjusted ret
KredX is backed by a set of passionate founders, financial & technology experts
and industry stalwarts. For details about
our team, click here
invest with KredX?
Individual resident investors
HUF / Proprietorship registered in India
Banks, NBFCs and other Financial Institutions
NRI investors (Provided you have an NRO account and
comply with basic pre-defined
KYC guidelines- Pan card and valid Indian address proof.)
a minimum amount for investment?
As of now you can invest a minimum of INR 3 lacs 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
the eligibility criteria
Any business that supplies goods/services to large blue-chip companies can avail the bill discounting services provided by KredX.
Eligibility and amount of discounting is governed by the creditworthiness of the business and
therefore they should be willing to share their financial information and other related documents.
Does KredX have an upper sanction limit?
We have no upper limit for sanctioned amounts for your invoices and it is solely dependent on the borrower’s requirements.
The upper limit depends on the business requirement and the eligibility as per KredX’s criteria.
What is the maximum invoice discounting tenure?
As we provide short-term investment facility to our investors, we only offer tenures upto 90 days as of now.
Will KredX’s invoice discounting facility affect my balance sheet?
No. We offer a zero-liability bill discounting service.
Since the working capital is availed using invoices, it bears no impact on your balance sheet.
the kind of returns expected
for the investors?
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 guarantee my returns?
KredX provides a 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 take 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 Risk factors for
financial information be
shared with other third parties?
No, KredX is serious about data privacy and we maintain complete confidentiality of
your private & financial data and
term of use for additional details.
the Risk involved?
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 blue-chip company does not pay the invoice
money in 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.
happens if KredX goes out of
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 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,