Alternative investment · Fixed income · Short tenure
Invoice Discounting 11–13% p.a.
A short-term fixed-income opportunity backed by trade receivables of large corporate buyers. Your capital works in 30–120 day cycles with no market volatility.
A business (typically an MSME supplier) sells its unpaid invoices — raised on large, creditworthy corporate buyers — to investors at a discount to their face value, in exchange for immediate funds. The investor earns the difference between the discounted amount and the full invoice value, realised once the corporate buyer settles the invoice — typically within 30 to 120 days.
1
Supplier raises invoice
On a large corporate buyer for goods or services delivered
2
Investor discounts it
Funding a portion of its value upfront at an agreed yield
3
Buyer pays on due date
Invoice settled 30–120 days later at full face value
4
Investor is repaid
Principal plus the discounting return is credited back
✅ Because invoices are raised on large, well-rated corporate buyers, investors gain exposure to corporate-backed receivables rather than unsecured retail lending.
Why invest
A comparable, low-risk alternative that targets meaningfully higher yields
See how invoice discounting compares to traditional fixed-income instruments.
Fixed Deposit
Returns
< 6% p.a.
Invoice Discounting
Returns
11–13% p.a.
Mutual Funds (Debt)
Returns
~7–8% p.a.
Illustrative returns; actual yields vary by invoice, tenure and underlying buyer credit profile.
Product highlights
What makes it attractive
Short-tenure invoice discounting offers a unique combination of returns, liquidity, and protection that most fixed income products don't.
💰
Superior Returns
Stable, non-market-linked returns of ~11–13% p.a., outperforming traditional fixed-income instruments.
⚡
High Liquidity
Quick capital turnover through short 30–120 day investment cycles. Reinvest frequently and compound returns.
🛡️
Insurance / Bank Guarantee Backed
Underlying investments can be covered by Trade Credit Insurance or Bank Guarantee for added protection.
🏢
Trusted Corporate Buyers
Invoices are raised on large, established corporates across e-commerce, energy, auto, retail and banking.
Illustrative examples
Sample Invoice Discounting deals
These are illustrative deal cards showing how an invoice discounting deal is presented to investors. Actual deals vary.
Multiple layers of diligence protect your investment
Every invoice discounting deal recommended by Indigrow Capital goes through a rigorous multi-layer risk assessment.
✅
Financial Health Check
3-year review of financial statements, debt-to-equity and profitability of every borrower.
🔍
GST Data Monitoring
Direct access to borrowers' GST portals to continuously track revenue and invoicing activity.
🏦
Bank Statement Analysis
EMI repayments, cheque bounces and intra-company transfers reviewed for governance.
🤝
Buyer–Seller Vintage
Track record of on-time transactions between buyer and seller boosts underwriting confidence.
🏭
Site Inspections
Regular visits to borrower offices and factories to confirm operations and rule out fraud.
📋
Invoice Verification
Invoices checked against GRNs and ERP records; only a portion of invoice value is funded.
📝
Post-Dated Cheque & Guarantee
A cheque for 1.5x the funded amount plus a personal guarantee backs full repayment.
🔒
Escrow-Based Collections
Buyer payments flow directly into escrow, ring-fencing funds from seller-side risk.
⚖️
Independent Trustee Oversight
A regulated trustee vets each seller and invoice before any transaction is approved.
Common questions
FAQ
Everything you want to know before investing.
Who can invest in invoice discounting? +
Any resident Indian individual or HUF with a PAN card and bank account can invest. You will need to complete a one-time KYC on the platform. No Demat account is required.
What is the minimum investment amount? +
The minimum investment starts at ₹10,000 per deal on most platforms, though this varies by deal. We'll share deal-specific details before you commit any funds.
How are returns taxed? +
Returns are treated as interest income and taxed as per your applicable income tax slab. TDS may be deducted at source depending on the platform. We recommend consulting your CA for specific tax advice.
Can I exit before maturity? +
Invoice discounting is generally illiquid — funds are locked until the invoice matures. Given the short 30–120 day tenures, this is usually not a major concern. Early exit options are platform-dependent and not guaranteed.
What happens if the buyer defaults? +
In the rare event of a buyer default, the platform's recovery process is initiated. Indigrow only recommends deals where the buyer is a large, rated corporate entity. Additional protection may be available via Trade Credit Insurance or Bank Guarantee depending on the deal structure.
How does Indigrow Capital help me invest here? +
We independently vet deals before recommending them — assessing buyer creditworthiness, platform track record, escrow structure, and deal-specific risks. We save you the time of evaluating each deal yourself and only bring you opportunities that meet our quality threshold.
Ready to invest in invoice discounting?
Talk to us and we'll walk you through current live deals, expected returns, and the onboarding process — at no cost.
Risk Disclosure: Invoice discounting and Pass-Through Certificates are debt-oriented, non-market-linked investments and are subject to credit, liquidity and operational risk, including the risk of delayed or partial repayment by the underlying corporate buyer. Past on-time repayment performance is not indicative of future results. Returns, tenures and the specific deals shown in this document are illustrative and subject to change based on invoice availability, buyer credit profile and market conditions. Investors should independently evaluate the suitability of any investment, including the underlying risk factors, before committing funds. This document does not constitute investment, legal or tax advice.