Invoice Discounting
Advance funds against business invoices, providing short-term financing to businesses while offering investors attractive returns on capital secured by accounts receivable. This financing solution improves business cash flow while creating attractive short-duration investment opportunities.
Asset-Backed
Investments secured by verified business invoices to creditworthy customers
Short Duration
Typical 30-90 day investment cycle providing frequent reinvestment opportunities
Stable Returns
Performance based on invoice repayment, not correlated with market fluctuations
Key Features
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Short-term investments with typical 30-90 day durations
Brief investment cycles provide excellent capital efficiency and liquidity, allowing investors to adjust strategies quickly in response to changing economic conditions.
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Asset-backed security through verified customer invoices
Each investment is secured by legal claim to invoice payments from established businesses to their creditworthy customers, creating a clear path to recovery.
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Predictable returns independent of market fluctuations
Performance primarily depends on invoice payment rather than market sentiment or economic cycles, offering portfolio diversification and stability during market volatility.
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Multiple layers of risk mitigation and verification
Our platform employs thorough due diligence including credit scoring, invoice verification, fraud detection systems, and in many cases, credit insurance or personal guarantees.
Potential Returns
Invoice discounting typically provides annualized returns significantly higher than traditional fixed income, with the added benefit of short investment cycles allowing for capital redeployment or withdrawal throughout the year.
Return Drivers:
- Discount rate applied to invoice face value
- Invoice duration (shorter terms = higher annualized returns)
- Creditworthiness of the invoice payer
- Industry sector and payment history patterns
Risk Assessment
Primary risks include invoice default by the end customer or fraud by the invoice seller. Our platform mitigates these through rigorous verification, credit assessment, and selective industry focus with established companies.
Risk Factors:
- End customer payment default or bankruptcy
- Invoice disputes affecting payment amounts
- Seller fraud or misrepresentation
- Industry-specific market dynamics affecting payment cycles
How It Works
Invoice Selection
Choose from verified invoices issued by businesses to their creditworthy clients, with detailed risk information and expected returns for informed decision-making.
Funding Provision
Capital is deployed to purchase invoices at a discount to their face value, with businesses receiving immediate cash flow and investors acquiring the right to future payments.
Invoice Settlement
When customers pay the invoices, investors receive their principal plus the discount margin as profit, completing the investment cycle with returns based on the original discount rate.
Investment Example
An investor seeking short-term income opportunities deployed capital into a diversified portfolio of invoices from various industries.
Investment Details:
- $50,000 initial investment
- Portfolio of 15 invoices across 8 industries
- Average invoice face value: $20,000
- Average payment term: 45 days
- Average discount rate: 1.5% per month
Outcome:
- 14 invoices paid in full on schedule
- 1 invoice delayed by 15 days (resolved)
- Total return over 45 days: $2,812.50
- Annualized return: 12.1%
- Capital redeployed to new invoice opportunities
Note: This example is illustrative only. Past performance is not indicative of future results. Individual invoice performance may vary.
Frequently Asked Questions
How are invoices verified and selected?
Our platform implements a multi-stage verification process for each invoice, including confirmation with the end customer, legal documentation review, and credit assessment.
We focus on industries with strong payment histories and stable supply chains. Each invoice undergoes validation of authenticity, checking for proper authorization, matching with purchase orders, and verification of goods/services delivery. We also analyze the payment history of the end customer and evaluate the financial health of both parties to minimize default risk.
What happens if an invoice isn't paid?
In case of non-payment, our recovery process activates, involving direct collection from the end customer, accessing seller guarantees where applicable, and legal proceedings if necessary.
Our platform also maintains a provision fund that may provide partial protection against losses in certain circumstances. Recovery efforts are handled by our specialized collections team, who have experience in commercial debt recovery and maintain relationships with legal partners in relevant jurisdictions to ensure maximum recovery potential.
How quickly can I reinvest or withdraw my funds?
Once an invoice is paid, funds are typically available for reinvestment or withdrawal within 1-2 business days.
With average invoice durations of 45 days, investors can expect frequent opportunities to adjust their investment allocations or access their capital. Our platform offers auto-reinvestment features for those seeking to compound returns, or simple withdrawal processes for those who need liquidity. This flexibility makes invoice discounting suitable for both short-term cash management and longer-term portfolio strategies.
What industries do you focus on for invoice discounting?
We specialize in sectors with established business models and straightforward payment verification.
These typically include manufacturing, wholesale distribution, professional services, logistics, technology services, and healthcare suppliers. We generally avoid industries with high dispute rates or subjective delivery outcomes. Each sector undergoes thorough risk analysis, and we maintain sector concentration limits to ensure portfolio diversification and stability, adjusting our focus as economic conditions evolve.