Individual resident investors HUF / Proprietorship registered in India Institutional investors NRI investors (should have an NRO account and comply with basic pre-defined KYC guidelines - Pan card and valid Indian address proof)
Funds/Investment companies, high net worth individuals, other financial bodies may all apply to become investors on KredX. We reserve the right to approve or reject application based on our internal credit policy. Also, we are not bound to disclose the credit policy publicly.
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. Historically, financiers have seen returns ranging from 15-24% annualized.
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 ensure 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.
No, you can invest as little or as much as possible. The only criteria for investment is that your account should contain sufficient funds to honor your bidding.
It is very simple. Login to your homepage and submit the 'Withdraw Request' form. Based on your request and any pending bids from your side, we will quickly process your withdrawal request and you will receive the funds in your personal bank account by end of next business day..
KredX provides a platform to connect borrowers and financiers and execute transactions between them. KredX provides certain tools, for example - credit report of the borrowers - 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 finance. Please refer to the Risk factors for details.
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 150 days.
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 in KredX 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 borrowers in case of default.
Membership process is very simple. Just 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 we get those documents, we will authorize your membership and you will receive an email from KredX.com apprising you of your login details.
As a part of our membership, we will open an escrow account on your behalf in our partner bank. After you receive your login details, you need to transfer sufficient funds in this account so as to start your bidding process. Please note that at no point KredX will transfer any part of this fund to KredX's account.
KredX produces a detailed Investment Advisory Report for all invoices on its platform. KredX provides a comprehensive risk rating and other financials pertaining to the invoice to help educate the investors on the quality of the invoice. KredX uses a comprehensive risk management framework in place to ascertain the credit risk associated with all the invoices available for financing on our platform. We also vet the invoices to ensure that they are genuine and carry minimal risk. We share all information regarding the borrower and the invoice along with our own ratings and suggestions with our esteemed investors. We work very closely with our investors to understand their investment requirements and advise them on what is best for them. We have dedicated relationship managers for each investor throughout their engagement with KredX.
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 borrowers and their financials at onboarding
Verification process - Invoices are physically verified. Moreover, invoices restricted to only blue-chip companies
Strong legal framework – all borrowers 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
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 would be transferred to the investor
If KredX goes out of business, through the escrow mechanism setup, the money owed to the investor will still be paid at maturity
m 30 days to 150 days.
No, as an investor, you can decide on the amount you would want to invest in any invoice. You can either fund partill charge me as an investor? We don't charge any membership fee or joining fee. Our philosophy is 'We Earn when You Earn'. Keeping this in mind, we only charge you a fraction of your profit and that too when you receive your amount invested along with your profit. For detailed information, please talk to your relationship manger.
Similar to other investments, this will also attract a tax on the returns. KredX will deduct 10% of the profit as TDS and will provide the requisite TDS certificate for future tax filings.