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. At Invoice Trades, SME’s supplying goods and/or services to blue-chip companies or financially viable companies/businesses with a minimum turnover of 5 Cr having at least 2 years business experience can submit their application on Invoice Trades platform to avail working capital. The eligibility and sanctioned amount is dependent on the creditworthiness of the business including their Turnover, Profit margins, Debt-Equity ratio, 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.
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 180 days. We have diversified our product range by introducing Work Order financing, Working Capital Financing, Revenue based financing, Purchase and Sales Invoice Discounting. These type of financing is structured under Strategic deals and the tenure for these deals may range from 180 to 365 Days.
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 confidential , 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.
At Invoice trades, your investment is our top priority. Backed by a trusted NBFC and reinforced with years of expertise , we ensure that every deal is safeguarded & handled with the highest level of security. Our rigorous processes safeguards and transparent processes makes us the safest choice for your financial investments.
All vendors impaneled with us go through our stringent credit risk analysis and due diligence thereby ensuring that only the best of opportunities by the most creditworthy fund seekers are offered to our investors. Deals are backed by bank guarantee and PDC’s failing which can lead to legal implications under Section 138 of the Negotiable Instruments Act, 1881. The drawer (cheque issuer) can face fines of up to double the cheque amount and imprisonment for up to two years, or both. In case of a delay or 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, 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, the sanctioned amount for invoices are dependent on the working capital eligibility based on Invoice Trades vendor empanelment criteria.
TDS Process for Vendors: For businesses, diligent adherence to Tax Deducted at Source (TDS) regulations is crucial—not only to avoid penalties and legal complications but also to ensure seamless financial operations. TDS plays a key role in the country's tax ecosystem, serving as a mechanism for the government to collect taxes at the source of income generation. For all empanelled vendors availing 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 the Invoice Trades platform.
In cases where the buyer provides a valid form 15G/15H and meets all eligibility criteria, tax deducted at source on verification of such forms will be credited back to the buyers registered bank account.
All withdrawal requests will be processed and credited to your registered account with us within 48 to 72 business 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.