5 Best Invoice Discounting Platforms in India for Investment with 12% Plus Returns

Invoice Leasing Investment in India

In recent years, invoice discounting or bill discounting has become a popular short-term alternate investment option for retail investors. It is a viable funding option for expanding enterprises. By invoice discounting, they can get money in advance on unpaid bills.

The minimum investment is determined by the company that promotes their offer on multiple platforms. That might range from 50,000 to 3 lacs or more. The predicted interest rate is from 11 to 13 percent.

What Is Invoice Discounting?

An invoice discounting facility is a financing organisation that makes an early payment to a business against a trade invoice in exchange for a minor charge. This is common practise since enterprises in both domestic and foreign business-to-business commerce often have a credit cycle of 30, 60, or 90 days.

This service is provided by a number of prominent platforms available on mobile app and website. The best 5 apps offering the best invoice discounting service in India are listed below.

Best Invoice Discounting Platforms in India for Retail Investors |

1. Leaf Round

Leaf Round Review

Leaf Round is an Indian investment platform that allows users to participate in Alternative investment with ease. Alternative assets are anything other than stock, cash, and income.

Leaf Round makes it simple to invest in these alternative assets. Leaf Round can handle it all for you if you are unsure about the large investment sum or potential risks connected with these ventures.

You can find investment alternatives under the deal area, where you can select investment plans such as asset leasing, invoice discounting, and a variety of others.

Minimum Investment: 50,000

Expected Net IRR: 11% - 13%

Minimum tenure: 60 Days

Leaf Round Referral Code: S32Y1WN

2. TradeCred

TradeCred Review

TradeCred is a platform where you can invest in invoice discounting and earn a consistent return of 11-13% over a short period of time with minor risks such as loan default and late payment of returns, but it is typically safe.

It is one of the finest options for someone searching for a short-term investment with a better return than FD but lower risk than stocks, with a minimum commitment of Rs. 50,000 and a straightforward process.

Minimum Investment: 50,000

Expected Net IRR: 10% - 13%

Minimum tenure: 75 Days

3. kredx

kredx Review

KredX is an alternative investment model in which you may begin investing with a minimum of 3 Lacs for a short period of time and anticipate a set return at the conclusion of the investment period, which can range from 30 to 90 days. Annual returns range from 12% to 20%. (as per their marketing material).

KredX describes itself as a provider of supply chain finance solutions. It offers finance and cash flow management to corporations and small enterprises, including Buy Now Pay Later (BNPL Service) for B2B payments, invoice discounting, import-export financing, and so on.

Minimum Investment: 2,00,000

Expected Net IRR: 11% - 15%

Minimum tenure: 60 Days

4. jiraaf

jiraaf Review

Jiraaf is a fintech platform that provides retail customers with alternative investment solutions. It provides higher yields than fixed deposits. Jiraaf offered new fixed-income products to Indians, such as covered bonds, leases, and invoice discounting. In the case of invoice discounting, gross returns might range from 10% to 15%. Your post-tax returns will be determined by your tax bracket.

Minimum Investment: 50,000

Expected Net IRR: 11% - 18%

Minimum tenure: 60 Days

5. Clear

Clear Review

Clear Finance is Clear's new financial services product. Clear Invoice Discounting is their first financial services offering, and it allows suppliers to get paid on their invoices sooner rather than later, rather than waiting out extended credit terms. It enables several options for enterprises (or buyer organisations) to simply fund these early payment requests at a mutually agreed-upon discount, producing a win-win situation for both parties involved.

How Invoice Discounting Works?

Assuming Royal Boxes Pvt. Ltd., a packaging materials company, provides Cardboard boxes to Samsung for packing Refrigerators. They delivered boxes to Samsung on May 1, 2021, and Royal Boxes sent an invoice for 100,000 INR to Samsung, which is due in 90 days, on July 30, 2021. Nonetheless, Royal Boxes requires fast payment while offering a reduction on their invoice amount. They will now exchange this invoice for 95000 INR with individual purchasers. You've probably figured out that this is a win-win situation for both Royal Boxes and Individual Buyers on TradeCred. Since Sarda boxes received the monies immediately rather than after 90 days. And, when the invoice is fulfilled, an individual buyer made 5000 INR profit on his/her investment of 95000 for three months.

Pros of Invoice Discounting

  • Short term investment minium 30 days
  • Higher annual returns up to 18%
  • Better returns cmpare to other investments like FD, MF, Other Government schemes
  • Low Lock-in period
  • Increases cash flow
  • There is no need for collateral assets
  • Applicable to both large and small enterprises
  • Finance solution that is flexible
  • Protection against bad debts

Cons of Invoice Discounting

  • Invetment starts from Rs. 50,000
  • Short period of investements
  • Minimum investments amount are high

Is invoice discounting safe?

Yes, if a reputable service provider uses it, it is secure for investors and purchasers. Despite this, there is still the possibility of a payment default, which may impose repayment repercussions on the firm or the lender.

How much profit can you expect from invoice discounting in India?

The return on invoice discounting in India might vary based on a variety of factors, including the size of the invoice, the customer's creditworthiness, and the conditions of the agreement with the invoice discounting provider.

In India, invoice discounting typically provides annual returns ranging from 12% to 18%, however this might vary based on the unique conditions. The precise return will also be determined by factors such as the invoice discounting provider's fees, the length of the arrangement, and any other charges involved with the transaction.

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