Is invoice discounting safe Quora?

Is invoice discounting safe?

Invoice discounting provides a great investment option while protecting yourself against market volatility while reaping high returns. … It is these invoices that are then discounted and bought by investors on the KredX platform. This completely eliminates any market intrusion and thereby all dependency on market health.

Is invoice discounting a good idea Quora?

I would warn and definitely not recommend anyone to invest in this. Their rating (KredX rating) is deeply flawed- no idea how it gets calculated and the deal I invested in was apparently in the above threshold good range. They have no control or way to get your money back.

Is invoice discounting investment a good idea?

Invoice discounting provides a great investment avenue to protect yourself against market volatility and economic fluctuations while generating high profits. … This completely eliminates any market intrusion and thereby, all dependency on the market performance.

Is invoice discounting profitable?

Invoice discounting works best for companies with relatively high profit margins, since they can readily absorb the higher interest charges associated with this form of financing. … Invoice discounting is impossible if another lender already has blanket title to all company assets as collateral on a different loan.

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Is KredX registered with RBI?

It is an RBI regulated trading platform meant to buy and sell receivables on a bidding model under the Payments and Settlement System (PSS) Act 2007. The SME supplier uploads an invoice onto the platform, which is subsequently approved by the buyer.

Is invoice discounting legal in India?

Apart from a few private players, the RBI has allowed Receivables Exchange of India, A. TReDS and M1Xchange to operate online bill discounting platforms under its ‘Trade Receivables Discounting System’ (TREDS) initiative. The three platforms combined have alone discounted bills worth Rs 18,000 crore last fiscal.

Is TradeCred safe?

Is TradeCred safe? Yes, TradeCred is backed by strong founders, management team and investors. They partner with reliable companies such as Amazon and Tata to ensure null defaults, making them safe.

Is TradeCred good Quora?

In short, it seems to be a good option for investors who want returns higher than that offered by FDs, but don’t want to put in the time and take the risk that comes with the stock market. They are not replacement for FDs as the risk is higher.

What is a discounting facility?

Invoice discounting is an invoice finance facility when a company’s unpaid invoices are used as collateral for a loan. Invoice discounting companies enable businesses to leverage the value of their sales ledger.

Who regulates invoice discounting in India?

7.14]. The Reserve Bank of India constituted a Working Group on Discounting of Bills by banks in December 1999 to examine the possibility of expanding the scope of bill discounting and to extend the facility to services sector in view of its growing importance.

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What is Falcon invoice?

Falcon is one of the leading P2P Invoice Discounting platforms in India where we connect blue chip companies with investors. We aim to revolutionize the investment market in India by creating a one-stop shop for all borrowers & investors with varied profiles and needs who can have access without any risk.

How does invoice discounting work?

As with all types of invoice finance, with invoice discounting you sell unpaid invoices to a lender and they give you a cash advance that’s a percentage of the invoice’s value. Once your customer has paid the invoice, the lender pays you the remaining balance minus their fee.

What are the disadvantages of invoice discounting?


  • Cost – there is a cost to use an invoice discounting service. …
  • Minimum charges – some invoice discounting facilities will have minimum monthly or annual charges. …
  • Security requirements – additional security such as personal guarantees may be required.

Is invoice discounting regulated?

Invoice factoring is not regulated by the FCA. Check for hidden fees with any prospective provider before committing to anything. Not being regulated may currently be helping to keep costs for this type of finance down.

What are the disadvantages of invoices?

What are the disadvantages of using invoices?

  • A badly drafted, vaguely worded document can be wrongly interpreted or easily disputed, delaying payment.
  • If product sales or the hours of work undertaken are not meticulously noted, an invoice can appear approximate and could be challenged.