KredX

Suppliers that want cash now for invoices that customers have not yet paid, and investors who want to fund that short-term credit, can use KredX, a supply chain finance company in India. The company describes itself as the largest of its kind in the country, and it presents its work as a way to free up money tied up in receivables across a supply chain.

Invoice discounting on a licensed platform

KredX runs a platform licensed by the Reserve Bank of India under the TReDS scheme, which lets a supplier turn an unpaid invoice into working capital. The company says several financiers bid to offer funds against the invoice, so that the supplier can take the most competitive rate available. It describes the process as digital and collateral free, with funds available quickly once an invoice is approved.

The platform is also said to help buyers manage their cash flow, and the company describes its work as supporting micro, small and medium enterprises in their working capital needs.

Financing cross-border trade

A second platform, licensed by the International Financial Services Centres Authority, supports import and export financing. It covers factoring for cross-border trade, so that exporters and importers can finance transactions across borders. The company presents it as a route to efficient financing for businesses trading internationally.

Cash management for receivables and payables

The company's cash management offer covers both sides of a business's ledger. Its accounts receivable service helps a supplier track what it is owed, and its accounts payable service helps a corporate buyer manage what it owes. KredX says the tools include real-time analytics, the handling of disputes and risk controls that aim to reduce exposure. The company also runs a closed-loop arrangement for dealers, distributors and retailers, which it presents as a way to keep a distribution network supplied with credit.

Investment opportunities

For investors, the company offers short-term alternative debt instruments, which it describes as a way to diversify a portfolio. Its site says these investments can be shorter in duration than conventional options and can provide a return over a short period. These are KredX's own descriptions, and the figures it quotes for returns are not reproduced here.

Scale and background

The company says its work covers businesses from small firms to large enterprises, along with banks and global trade players. It describes itself as a financial solutions provider that combines lending and investing services, and it publishes research and industry insights for the market it serves. The statements about its size and reach are its own claims.

KredX is a supply chain finance company in India that offers invoice discounting and cash management for businesses. It runs an RBI-licensed TReDS platform for invoice discounting and an IFSCA-licensed platform for import-export financing.

What KredX offers

• Invoice discounting: suppliers turn unpaid invoices into working capital, with several financiers bidding to offer rates.
• Import-export factoring: financing for cross-border trade through its IFSCA-licensed platform.
• Cash management: accounts receivable and accounts payable management, with real-time analytics, dispute management and risk control.
• Dealer and distributor financing: a closed loop financing model for dealers, distributors and retailers.

Who it serves

Suppliers, buyers and MSME businesses in supply chains, as well as corporate buyers that want to manage their payables. The site also offers short-term alternative investment options.

Key facts

• Based in: India
• Licences: an RBI-licensed TReDS platform and an IFSCA-licensed platform for import-export financing