Kredx India

Invoice Discounting platforms work like matchmaking services for Businesses with Invoices and Investors seeking alternative financing solutions with high returns. Such platforms host a range of Investors from Individual Investors to Banks and NBFCs. Considering the fact that Indian businesses face delay of 65 days to get payments from the day of Invoicing (according to 2019 survey of Atradius on B2B Payments in APAC) there is a burning requirement among businesses to get easy access to cash. Invoice Discounting platforms serve this purpose as the tenure for this facility generally range from 30-90 days. Even with all the positives about the product it is not a zero-risk investment product. While the investors earn high returns on their investments they should always remember the investment principle that the higher the return the higher the risk. This article addresses the inherent risks involved in Invoice Financing