Invoice Discounting

7 Reasons Why You Should Consider Investing In Invoice Discounting

With investors constantly on the lookout for investment avenues outside of traditional routes, alternative investments options have steadily been gaining in popularity. Invoice discounting has emerged as a popular favourite but how sure can you be that bill discounting is for you?

With investors constantly on the lookout for investment avenues outside of traditional routes, alternative investments options have steadily been gaining in popularity. The ultimate goal of every investor after all is to grow their money while safeguarding their funds. What if you could grow your money and get high returns at minimal risk all in a short timeframe! Read on to know why you should consider KredX’s invoice discounting services to grow your money.

Short-term investment option

On KredX, investors can invest funds and grow it in a matter of only 30-90 days. At the end of the tenure, investors receive the principal amount invested along with attractive profits. By investing in such short term instruments that give higher returns than traditional investments, investors stand to gain much more annually (ARR) by rolling or continually re-investing their returns from the previous investments.

Minimal risk

Invoice discounting is an investment instrument that carries little execution risk of incidence. Traditional loans carry execution risk as they are taken for an event that is yet to happen in the future such as a house that is being built or a car. However, on the KredX platform, investors invest in a service as an asset that has already been executed and has an invoice already raised against. Furthermore, KredX takes multiple precautionary measures to minimise the potential risk to our investors about which you can read more here.

Lucrative profits

KredX offers investors with a unique opportunity to invest their money in an instrument that offers above-market returns of ~12-20%. As compared with traditional investment routes such as FD’s, RD’s or even the best performing mutual funds (debt or liquid) available in the markets, this is much higher in terms of annualised returns. Invoice discounting investments are one of the fastest growing alternative investments available to retail investors, HNI’s and institutions looking for investment options that offer high returns at minimal risk.

Integration with technology

KredX’s unique technology-enabled platform provides investors with a hassle-free investment experience. They get a seamless end-to-end investment option with professional management and a completely digital investment experience at the click of a button. Investors receive real-time status updates about their investments and also have access to a personalised dashboard with a snapshot of their portfolio complete with past investments, ongoing deals on the platform and options to manage funds in their KredX account.

Authenticity of invoices on KredX

All invoices that finally make it to the KredX platform get there after multiple rounds of verification to ensure that only genuine invoices are made available for purchase. In addition to this, it is important to note that these businesses supply to reputable blue chip companies and corporates that have their own rigorous verification process before they get into an agreement to work together.

Along with the risk mitigation process we follow to protect our investors, there are several legal clauses that bind the vendor and the blue chip company to fulfill invoice payments. These payments are performed through escrow accounts that we, as an unbiased third-party, manage to ensure that there is no influence that any party can levy on the funds due to our investors.

Great way to diversify investment portfolio

As any investor would know, diversification of an investment portfolio is the key to growing wealth. The minimal-risk high returns invoice discounting offers in a short time makes it an ideal option to diversify your profile. An investor should try to diversify their investment portfolio with a healthy mixture of investments in FD’s, PPF, invoice discounting through KredX, mutual funds and bullion among others.

Bill discounting is not market-dependent

Invoice discounting provides a great investment avenue to protect yourself against market volatility and economic fluctuations while generating high profits. The asset that KredX investors invest in are services or products that have already been supplied that come with a proof-of-task-completion in the form of invoices. It is these invoices that are then discounted and purchased by investors on the KredX platform. This completely eliminates any market intrusion and thereby, all dependency on the market performance.

As is the case with any investment, it is the investor’s responsibility to take an educated decision before investing in any instrument. We strongly urge all our investors to read and educate themselves about the product on our website and our blog. You could also get in touch with our team at info@kredx.com for any clarifications about our process or our offerings.