FAQs

Invoice discounting is the practice of using company’s unpaid invoices to raise working capital & fulfill its financial needs. Traditionally, financial institutions including banks and NBFCs have been discounting invoices for MSMEs. Invoice discounting involves transfer of rights on an asset (invoice) from the seller (i.e. business) to the financier (i.e. investor) at an agreed value.

Finworks360 provides a marketplace/platform for business owners to sell their invoices and investors to purchase invoices raised on blue chip companies. It combines the best in class technology experience with credit underwriting & data analytics capabilities to create a brand new investment asset class.

Investors looking to invest money for short term (30-90 days on an average) can earn attractive returns on their investment by purchasing these future cash flows. Register yourself with us on our website as an investor and we will help you park your investments in this unique asset class with varying maturity periods providing attractive risk-adjusted rate.

• Individual resident investors
• HUF / Proprietorship registered in India
• Institutional investors
• Banks, NBFCs and other Financial Institutions
• NRI investors (Provided you have an NRO account and comply with basic pre-defined KYC guidelines- Pan card and valid Indian address proof.)

Invoice discounting is the practice of using company’s unpaid invoices to raise working capital & fulfill its financial needs. Traditionally, financial institutions including banks and NBFCs have been discounting invoices for MSMEs. Invoice discounting involves transfer of rights on an asset (invoice) from the seller (i.e. business) to the financier (i.e. investor) at an agreed value.

Finworks360 provides a marketplace/platform for business owners to sell their invoices and investors to purchase invoices raised on blue chip companies. It combines the best in class technology experience with credit underwriting & data analytics capabilities to create a brand new investment asset class.

Investors looking to invest money for short term (30-90 days on an average) can earn attractive returns on their investment by purchasing these future cash flows. Register yourself with us on our website as an investor and we will help you park your investments in this unique asset class with varying maturity periods providing attractive risk-adjusted rate.

• Individual resident investors
• HUF / Proprietorship registered in India
• Institutional investors
• Banks, NBFCs and other Financial Institutions
• NRI investors (Provided you have an NRO account and comply with basic pre-defined KYC guidelines- Pan card and valid Indian address proof.)

As of now you can invest a minimum of Rs. 10,000/- per deal. This has been set to ensure that you have sufficient liquidity to invest in an alternative investment class and the required risk appetite for the same.

Membership process is very simple. Just provide your contact details on our website and our relationship managers will contact you to complete the registration process. As a part of our KYC norms, we will need a small set of documents to ascertain your investor’s status. Once we get those documents, we will authorize your membership and you will receive an email from Finworks360 apprising you of your login details.

Finworks360 does not play a role in deciding the discount rates of the invoices. The returns on your investment will be governed by market forces on the basis of demand and supply economics. Expected yield corresponding to deals will be made available to investors before any purchase, this ensures that investors know their returns before initiating the fund transfer.

Finworks360 provides a platform to connect sellers of invoices and investors and execute transactions between them. Finworks360 provides certain tools, for example – credit report of the seller, enterprise report (blue-chip company) among others – to take a calculated investment decision.
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Finworks360 does not guarantee any fixed return to its investors and the investment would be subject to the traditional market risk associated with invoice discounting. Please refer to the Risk factors for details.

No, as an investor, you can decide on the amount you would want to invest in any invoice, based on your capacity. You can either fund partially or fully an invoice.

Tenure of the investment is linked to the invoice payment date. Every invoice will have a different maturity period. Generally it has ranged from 30 days to 90 days.

Invoice Financing is a very niche product in the asset based financing arena. It carries minimal undue risk while generating superior return on investments. In advance economies, it has emerged as a major form of investment. Finworks360’s Invoice Financing platform ensure higher short-term yield for its investors. Our conservative and continuously evolving risk management policies minimizes the risk of investing for our investors. Our experience in MSMEs financing space helps us in catering only to the lowest risk segment within the space.

Finworks360  is an ISO 2001:2015 certified entity. We ensure security of  information of our clients by maintaining strict adherence to quality standards and privacy . The ISO certification is further validation of the high standards we follow.

We have an established due diligence process in place backed by manual verification of the parties. We are also very selective in choosing the people with whom we do business.
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The business in Finworks360 are obliged legally to pay back the amount owed to the investors irrespective of whether the invoice is paid by their customer.
In the remote case of a default by the customer, we will facilitate legal help for them and will provide assistance in recovering the loss. We have tied up with various collection agencies/ Entities to recover the amount due from the business in case of default.

Any investment comes with its own associated risk. The risk could be total capital erosion. However, we have taken several steps to mitigate the risk – both strategically and operationally:
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• Comprehensive risk management framework – Detailed credit analysis of sellers and their financials at onboarding. Regular review of financial position of blue chip companies on whom invoices are raised
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• Verification process – Invoices are verified physically. Moreover, invoices are restricted to only blue-chip companies.
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• Strong legal framework – All sellers are required to sign our legal agreements to ensure our investors are well protected.
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• If blue-chip company does not pay the invoice money in future – the small business is still liable to pay the money owed to the investor.
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• If the small business collapses, the blue-chip company would still pay the invoice money and this will be paid directly into the designated collection account which will be transferred to the investor.
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• Finworks360 is a tech platform and it does not assume any credit risk on behalf of the investors.

The Finworks360 business model is one where investors do not face any execution risk. Our 360° credit risk analysis system takes place at multiple stages.
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Business-Onboarding Stage
We follow a three-pronged approach that is dependent upon the business, the enterprise and their relationship to arrive at a Finworks360 rating for every business.

Business –
Credit credentials (Credit reports of company and individual reports of directors)
Financial Health & Stability (All financial and company documentation)

Enterprise-
Credit Rating of Enterprise
Fundraising Ability
Liquidity
Market News

Relationship Between Business and Enterprise-
History of working relationship
Payment timeline

Post Evaluation Stage
Legal mechanisms such as undertakings, bills of exchange, review of legal proceedings and Insolvency Application before NCLT, etc involving vendor and enterprise.

Invoice Listing Stage
Verification of every invoice before listing on the platform

Invoice Purchase Stage
Finworks360 monitors the security of every transaction through Escrow Arrangement / Confirmation as agreed between platform, seller and debtor for the benefit of the Financers leading to transfer of funds to a dedicated account.

In addition to this, all the important data points after evaluation by the Finworks360 risk team are summarised in different reports at the vendor, enterprise and deal level.

Finworks360 in collaboration with their partner bank has facilitated opening of an escrow account for each individual member. All transfer of funds happen through the dedicated account through agreed Escrow arrangements. In case of liquidation of Finworks360 due to any financial/legal reason, money in member’s escrow account will be returned to the respective owners immediately. Money involved in the process will not be transferred to Finworks360 account at any stage (except service fees and government taxes, etc.).

Invoice discounting is the practice of using company’s unpaid invoices to raise working capital & fulfil its financial needs. Traditionally, financial institutions including banks and NBFCs have been discounting invoices for MSMEs. Invoice discounting involves transfer of rights on an asset (invoice) from the seller (i.e. business) to the financier (i.e. investor) at an agreed value.

Finworks360 provides a marketplace/platform for business owners to sell and investors to purchase invoices raised on blue chip companies. It combines the best in class technology experience with credit underwriting & data analytics capabilities to create a brand new investment asset class. Business-owners looking for advance on their invoices, raised on blue chip/creditworthy institutions, can use our platform to sell these unpaid invoices at attractive rates.
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Register yourself with us on our website as a business and we will help you sell your invoices at competitive rates.

Any business that supplies goods/services to large blue-chip companies can avail the bill discounting services provided by Finworks360. Eligibility and amount of discounting is governed by the creditworthiness of the business and therefore they should be willing to share their financial information and other related documents.

We have no upper limit for sanctioned amounts for your invoices and it is solely dependent on the business’s requirements. The upper limit depends on the business requirement and the eligibility as per Finworks360’s criteria.

As we provide short-term investment facility to our investors, we only offer tenures upto 100 days as of now.

Finworks360 is a ISO 27001:2013 certified private entity that deals with secure information from our clients. The ISO certification is further validation of the high standards we follow.

All invoices listed on the Finworks360 platform on behalf of the business are purchased by our network of investors. The benefits accrued through this instrument is an income for these investors and hence, attract a TDS of 10% as per the IT ACT, Government of India, under Section 194A.
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As per our TDS Payment Policy, Finworks360 will deduct the TDS amount due from the total payment but not deposit the TDS amount on behalf of the business’s Company. Partners will be required to deposit the respective TDS liabilities to the Income Tax Authority on their own regularly before the due date. Furthermore, the TDS deposited needs to be allocated to the Investor’s PAN by the end of each quarter. To ease out this entire process, Finworks360 will provide all the necessary details along with TDS liabilities as well as Investor’s details such as PAN number and amounts to be allocated via Finworks360 Dashboard on an as-you-need basis.
Finworks360 will initiate the refund of the TDS amount withheld once the partners submit the Form 16 for each quarter, post a quick internal verification of the submitted Form 16
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Kindly note, Finworks360 will not refund the amount withheld till we receive the form 16 for the previous quarters.

Finworks360 in collaboration with their partner bank has facilitated opening of an escrow account for each individual member. All transfer of funds happen through these escrow accounts. In case of liquidation of Finworks360 due to any financial/legal reason, money in member’s escrow account will be returned to the respective owners immediately. Money involved in the process will not be transferred to Finworks360’s account at any stage (except service fees and government taxes, etc.).