FAQs is an abbreviation for Frequently Asked Questions about a service or product. It is a collection of frequently asked questions and answers dedicated to a specific topic. However, it can also be any piece of knowledge in the form of a question-and-answer format.
Thus, if you have any queries about Invoice Trades and how we work feel free to keep reading. We've complied a list of frequently asked questions below. If you feel that we have missed out on something, then you can also type in your question in the for below!
All MSME entities as per the definition of the Micro, Small and Medium Enterprises Development Act, 2020 (“MSMED Act”) can avail the bill discounting services. MSME’s supplying goods and/or services to blue-chip companies or financially viable companies/businesses with a minimum turnover of 2 Cr having at least 2 years business experience can submit their application on Invoice Trades platform to avail working capital through TReDS. The eligibility and the amount of discounting are dependent on the creditworthiness of the business including their Turnover, Profit margins, overall liabilities, vendor payment cycles etc. This is defined after looking into their financial information so the company must be willing to share the information.
| Classification | Micro | Small | Medium |
|---|---|---|---|
| Manufacturing Enterprises and Enterprises rendering Services | Annual Turnover up to Rs.5 crore | Annual Turnover up to Rs.50 crore | Annual Turnover should not be more than Rs.250 crore |
Invoice Trades offers a zero-liability bill discounting service, hence your balance sheet will not be affected by it. In fact, it has no impact on your balance sheet as the working capital is availed using invoices.
The average tenure offered for invoice discounting is 60 to 120 days. We have diversified our product range by introducing strategic invoice discounting and the tenure for these deals may range up to 12 months.
The minimum invoice tenure is 30 days.
The minimum investment amount per transaction is Rs. 25,000 however, our registered customers can make multiple transactions in the same deal or across various deals.
No, you are not. You can purchase a certain amount of the invoice based on the minimum amount per transaction or may always perform multiple transactions in the same invoice or across different invoices.
Invoice Trades takes all the measures to make sure that all of your information is safe and secure. If there is any information shared with any third party, it is only after the user gives their consent to it.
The expected/projected yields with a preview summary will be shown to the investors before the purchase of a deal. Investment opportunities available on Invoice Trades ranges from 12.5% to 16% on an average and can go up to 20% for some of the niche deals.
All vendors empanelled with us go through our stringent credit risk framework thereby ensuring that only the best of opportunities by the most creditworthy fund seekers are offered to our investors. In case of a default, recovery is determined by the contract terms and the borrower’s credit score will be severely affected. Invoice Trades is an online platform that connects businesses and investors and we do not guarantee the returns. However, we are committed to timely recovery and repayments to our investors. Further, continuation of criminal proceedings will be initiated against the borrowers classified as fraud or wilful defaulter. Our legal team’s primary regulatory objective is to enable multiple avenues to recover the money in default without much delay and ensure that perpetrators of any malafide action do not go scot-free.
Yes, we have a pan-India operations which means that you can invest or borrow from anywhere in Indian.
Yes, the sanctioned amount for invoices are dependent on the working capital eligibility based on Invoice Trades vendor empanelment criteria.
TDS Process for Vendors:
For all empanelled vendors availing the Invoice Discounting facility, Factoring charges on sales cannot be termed as interest, thus not liable for TDS under section 194A. The discounted sale consideration receivable on sale of goods or services cannot be deemed as interest as the business has neither borrowed any money nor had incurred any debt, Hence, in such circumstances, discounting charges paid by businesses to Facilitator or Factoring company could not be treated as interest as per section 2(28).
TDS Process for Buyers:
All the invoices listed on the Invoice Trades platform are purchased by our registered buyers through the TReDS mechanism and the benefits accrued through invoice discounting instrument is an additional income for these buyers, hence, attract a TDS of 10% as per the Income Tax, Government of India, under Section 194A.
As per our TDS Payment Policy, Invoice Trades will deduct the TDS amount due from the total payment and deposit the same on behalf of the buyer. Furthermore, the TDS deposited needs to be allocated to the invoice purchaser's PAN by the end of each quarter. To ease out this entire process, Invoice Trades will provide purchase statement and TDS certificate upon request and details of the same will be available on customer dashboard on Invoice Trades platform.
In cases where the buyer provides a valid form 15G/15H and meets all eligibility criteria, no tax will be deducted at source on verification of such forms.
All withdrawal requests will be processed and credited to your registered account with us within 24 hours. For instance, if there is a withdrawal request submitted after 6:00 PM, the transaction will be processed and credited to your bank account the next working day. All pay-out windows are closed on Sunday and public holidays – this means any such request placed on Saturday after 6:00 PM, will be honoured the next working day.
All queries received through emails would be responded within 24-48 business hours from receipt of query/complaints.