7 Reasons To Explore Invoice Discounting As An Investment Option

7 Reasons To Explore Invoice Discounting As An Investment Option

Alternative investments are all the rage this year. With investors constantly on the lookout for investment options outside of traditional banking and stock market investments, alternative investments options have been gaining in popularity. From invoice discounting to peer-to-peer lending, the options are plenty, but how sure can you be that alternative investments are for you?

The ultimate goal of every investor is to grow their money while keeping their funds safe. What if we told you that you could grow your money, get high returns with minimal risk all in a short period of time! Don’t believe us? Read on to know why you should opt for invoice discounting at KredX as an investment.

Short-term investment option

Through KredX’s invoice discounting platform, you can invest your hard-earned money and grow it in a matter of just 1-2 months. At the end of the tenure, i.e. 15-90 days, investors receive the capital along with attractive profits. By investing in such short-term instruments that give higher returns than traditional investments, investors stand to gain much annually through continually re-investing their returns from the previous investments.

Also Read: Are Short Term Investments Really Benefiting You?

Investments stay safe

Invoice discounting is an investment instrument where the incidence of execution risk is minimal. Contrary to traditional loans that face execution risk as it is taken for an event that is yet to happen in the future such as a house that is being built or a car, at KredX, the 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. You can read more about our risk mitigation process here.

Also Read: How KredX Mitigates Risk For Its Investors

High Returns

KredX offers investors a unique opportunity to invest their money in an instrument that in-turn gives them above-market returns to the tune of 12-20% in annualised returns. This is much higher when compared to traditional investment routes such as FD’s, RD’s or even the best-performing mutual funds (debt or liquid) available in the markets. Invoice discounting as an investment is one of the fastest-growing alternative investments available to retail investors, HNI’s and institutions looking for investment options that can give them lucrative returns while keeping their investments safe and secure.

Also Read: Alternative Investments – The Next Big Thing

Seamless integration with technology

KredX’s unique technology-enabled platform allows investors a hassle-free investment opportunity. They get a holistic end-to-end investment option with professional management and a completely digital investment experience at the click of a button. Not only do investors receive real-time status updates about their investments, but they also have access to a personalised dashboard that offers them a snapshot of their portfolio complete with past investments, ongoing deals on the platform and options to manage funds in their KredX account.

Only genuine invoices get listed on KredX

All invoices that get listed on the KredX platform have gone through multiple rounds of verification to ensure that only genuine invoices make it to an investor’s screen. In addition to this, it is important to note that the reputable and respected blue-chip companies or corporates that vendors supply to have their own thorough process of vendor verification 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 any 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 neither the vendor nor the blue-chip company can levy on the funds due to our investors.

Great way to diversify investment portfolio

As any investor would know, diversification of your investment portfolio is key to growing your wealth. The high returns with minimal risk in a short time invoice discounting offers make 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.

Also Read: 5 Ways To Invest Money Lying Idle In Your Savings Account

Invoice discounting is market-independent

Invoice discounting provides a great investment option while protecting yourself against market volatility while reaping high returns. The assets that investors on KredX invest in are services or products that have already been supplied with a proof of task completion in the form of invoices. 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 the market health.

As is the case with any investment, it is the investor’s responsibility to take an educated decision before venturing out on any investment. 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 in case of any queries about our process or how to invest with us.

About kredx

mm

KredX is an invoice discounting marketplace connecting high growth businesses in need of quick working capital with investors looking to grow their money at minimal risk in a short tenure.

4 thoughts on “7 Reasons To Explore Invoice Discounting As An Investment Option

Leave a Reply

Your email address will not be published. Required fields are marked *