Oldest Invoice Discounting Platform with Zero NPA. Short term investment available
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Founded: May 2018, Mumbai
Investment type: Invoice Discounting
Minimum Investment: INR 1 lakh. For some deals minimum is 50k
Advertised returns: About 10- 12%
- Zero NPA to date
- One of the oldest invoice discounting platforms in India
- Option for Instant Liquidity
- High minimum investment of Rs.100000 per deal
- User Interface not at par with other platorms
- Auto Investment option is not available
TradeCred is an alternative capital investment platform for retail investors. You can invest in trade receivables discounting (invoice discounting) and bonds.
TradeCred allows the small business companies (seller) to submit their invoices on it’s own platform. These invoices are considered as deals. The investors are thus allowed to buy a part of the deal or the entire deal as per their ability to invest. Each of these deals has a fixed duration.
At the end of the deal, the company (seller) will pay the investor his investment along with the interest for that particular period of the deal
Type of Investment Opportunites
Investment options listed on Tradecred are typically of short duration.
- Invoice Discounting
- Corporate Debt
Tradecred boasts of zero NPA to date.
Invoices of companies available on TradeCred include:
- Coca Cola
What is TradeCred Invoice Discounting?
Invoice discounting is similar to raising funds selected for a company. It helps small businesses to sell their receivables that will aid their capital for a short period of time.
So here, in particular, 3 subjects are involved:
- Seller (Vendor)
1. Imagine a company that wants to sell toys on an e-commerce portal.
2. So the e-commerce portal will offer the seller an invoice and promise to pay it within 60 days.
3. Now the seller needs payments for further use and he cannot wait for such a long period of time. In such a case, he will present this invoice on a platform like TradeCred.
4. Now the investor on TradeCred will invest the money and raise funds for the seller, thus helping him to meet his needs on an immediate basis.
5. Once the invoice is paid by the e-commerce portal, the investor’s investment is returned along with appropriate interest.
Invoice discounting offers to earn up to 10-13% annual yield .of returns in a short tenor. This is in contrast to other investments that have a longer return span such as the stock market
Some Deals Featured on Tradecred
- Furlenco Invoice Discounting
Furlenco is The invoices are of very short to short duration (ranging from 30 days to 90 days) and generally have a Pre-Tax IRR of around 11%
- Zetwerk Invoice Discounting
1K Kirana Bazaar is building a network of small-sized modern format grocery stores across India. Jiraaf periodically launches invoices of 1K Kirana Bazaar on its platform. The invoices are of short duration (generally ranging around 90 days) and have a Pre-Tax IRR of around 14.2%
The average returns ranges from 10%-12% depending on various factors like duration, risk, type of investment, etc.
Invoice discounting opportunities listed on are generally of 30-90 days duration.
TradeCred was founded by Hardik Shah. He is the founder and CEO of Tradecred. He is a Chartered Financial Analyst (CFA) certified by The Institute of Chartered Accountant India (ICAI). He has also worked with companies such as Jio, Ernst and Young, Allcargo Logistics Ltd.
Kunal Tekwani is the co- founder of TradeCred.He completed his degree from University of Mumbai. Kunal is an expert in marketing, market management, finance and retail. He has also worked with companies such as Tata AIG General Insurance Company Limited, Reliance Commercial Finance and NumberTree Advisors Pvt Ltd.
Some key advisors of the company are:
- Hari Mundra – He is an Independent Director of ICICI Bank. Also associated with RPG Group, Essar Oil, Wockhardt
- Mr. Pushkar Singh – He is a CEO & Co-Founder @ LetsTransport, Tech Czars 2018, Forbes 30 under 30 Asia, Business world
TradeCred has been one of the few bootstrapped investment platform in the market which has not raised external funding till now. Zetwerk Manufacturing (capital and consumer goods manufacturer) has closed a ₹500 crore financing agreement with TradeCred.
Frequently Asked Questions
- Is TradeCred safe?
Yes, TradeCred is supported by renowned and experienced founders, a management team and investors. Their partners are reliable companies like Amazon, First Cry. However it is important to do your due diligence before choosing a deal.
- Is there any minimum withdrawal amount on this platform?
There isn’t any minimum withdrawal amount. You can easily withdraw any amount from your wallet and transfer it to your bank account.
- Is invoice discounting a good idea?
Yes, absolutely! If you have capital to invest and can choose strong companies for discounting you can achieve much higher yields than FD or Bonds.
Personal Experience of Yieldkart Team- Investing with Tradecred
As with most of the investment platforms listed to Yieldkart, we make it a point to invest in these platforms as an investor. We have been investing with Tradecred since its inception primarily in invoice discounting deals . Till date, for 100% of investments, payments have been on time with 0 defaults.
To get a complete review of the deals we invest in check – Portfolio Analysis
What are the steps to invest in TradeCred?
Registering on TradeCred is very easy and hardly takes 5 minutes.
- The most important step is that you need to have a phone number linked to the Aadhar card, PAN card, and bank account.
- On the next page, fill in all the relevant and personal details.
- That’s it, once your account has been created properly, you can complete your TradeCred login. The next step after TradeCred login would include adding funds to your account.
Remember: Simply adding funds to your account will not make you an investor. You have to choose an appropriate deal and invest in it.
You can check out the complete reviews of the above platforms here – Yieldkart.com
Tradecred has been one of the oldest platform for invoice discounting with a clean track record . Investors can use Tradecred with other investment platforms as an avenue to park short term capital. We provide our monthly portfolio investment analysis in a personal blog