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.
1) Credit credentials (Credit reports of company and individual reports of directors)
2) Financial Health & Stability (All financial and company documentation)
1) Credit Rating of Enterprise
2) Fundraising Ability
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.