It refers to a financial institution participating in TReDS with a view to lend money. The financier bids for factoring units and provides finance to the MSME seller.
Banks and NBFC Factors can participate in the factoring business and qualify for getting registered as financiers on the platform.
It depends on the constitution of your entity. Please visit ‘Contact Us’ page to get in touch with our Team.
You only need to enter into a one-time Master Agreement with TREDS to participate on the platform.
The key highlights of the agreement are as follows:
- Financier shall have the right to receive the receivables due and payable under a Factoring Unit from Buyer
- In case of non-payment by the buyer on the agreed upon due date, a financier will be entitled to pursue legal action against the buyer.
- All transactions undertaken on Invoicemart will be without recourse to seller
The financiers shall bid against the factoring units (FUs) on the platform and disburse funds to the seller.
You can choose to bid in multiple ways:
- Bid for a factoring unit (FU)
- Bid for multiple factoring units (FUs) at one go
- Bulk bid in an offline mode
- Auto bid
Invoicemart shall intimate the financers when a buyer is on boarded and share the credit assessment, as done by partner credit rating agencies. You may also use your existing processes to assess the credit worthiness of a buyer.
Yes, you will need to register the assignment of receivables with CERSAI as per the existing practice.
- Invoicemart will debit your account for net value (post deduction of the financier's charges) and credit MSME seller’s account on ‘T+1’/ ‘T+2’ day ('T' is the Bid Acceptance day) through NPCI
- Invoicemart will send the payment information to the buyer on successful credit in seller’s account
- Invoicemart will debit the buyer's account for the invoice value and credit your account on the due date
For the purpose of automatic settlement, Invoicemart shall obtain your NACH mandate at the time of onboarding.
The 'Notice of Assignment' shall be sent to the corporate buyer electronically by Invoicemart upon settlement of funds by the financier to the MSME seller.
In the rare case of a delay / default in repayment by the buyer, you will have a right to pursue legal action against the buyer.
No, there is no provision of extension of repayment period on Invoicemart.
Yes, the buyer may request you for pre-payment options as well. You will have the right to accept the buyer’s request and negotiate terms with the buyer.