KredX Process

A Look At The KredX Aging Report

An aging report (AR), as the name suggests, is a report of the age of an item(s). This is particularly used by businesses in the context of accounts receivables, payables and inventories. It consists of different age buckets that helps identify trends and underlying problems that need fixing.

In the case of unpaid invoices, these age buckets are counted as the number of days from the date of issue that are generally “current”, “0-30 days”, “31-60 days”, “61-90 days” and >90 days. If you take the instance of a business that may be going through a cash crunch, the business would utilise an aging report to identify and prioritise invoices that fall under the >90 days bucket or are 90 days past their due date, in other words, and follow up with these payments. Similarly, in the case of businesses that need to collect money from customers, they would target those invoices that are listed under the >90 days bucket.

Aging reports give a descriptive idea about the receivable portfolio of a company and is an integral sign of its overall functioning. It also serves as a compelling indicator of a business’s health which is a parameter by which businesses are assessed during valuation or in the case of KredX, speaks volumes about the safety of the investments on the platform.

Here’s a quick look at our aging report since KredX’s inception in 2015 which is indicative of our growth and most importantly our evolving robust risk mitigation processes.

Year Payment Received On Or Before Due Date 1 – 5 Days 5 – 15 Days 16 – 30 Days 30 – 60 Days >60 Days
2015 86.16 % 0.00 % 0.00 % 0.00 % 13.84 % 0.00 %
2016 35.58 % 32.04 % 21.93 % 8.15 % 1.66 % 0.64 %
2017 56.14 % 27.33 % 9.51 % 5.13 % 1.79 % 0.10 %
2018 84.18 % 10.71 % 3.63 % 1.39 % 0.09 % 0.00 %

The KredX model is such that the earnings investors make on our platform come from the enterprises when they make payments that are due to the vendor. As listed above, while the total number of deals, each ranging between 1 Cr – 50 Cr INR, have increased over the years, we have meticulously worked to reduce the incidence of delays.

According to the KredX aging report for January 2018 – September 2018, of the total 137 deals that have been listed on the KredX platform, only a mere ~Rs. 69,000 was delayed by more than 30 days after the due date due to delays in repayment from the enterprise’s end. Though we follow a stringent three-pronged risk evaluation process for the invoices, the businesses who generate them and the enterprises the invoices are raised to, a small percentage of these payments may be delayed to various reasons, as is common in the business world.

To offset the occasional delay and inconvenience caused to our valuable investors, KredX has in place a legal framework that protects and safeguards the investor’s money and holds the vendor accountable to pay (also known as a recourse in legal terminologies) along with the levying of penal charges that are calculated for the number of days the payment is delayed for. In case of such delays, KredX aims to provide the investor a commensurate yield, i.e., Purchased Amount + Discounting Income + Penalty.

At KredX, customer satisfaction is priority and we constantly strive to give you the best possible experience possible experience on our platform. We urge all investors to make informed decisions, as is the case with all investments, and go through the KredX Scores and reports availables to our patrons at the vendor, enterprise and deal levels before investing in deals on KredX platform. If you have any further queries regarding our aging report, the risk involved or any other feature, please reach out to us at