Frequently asked questions

What is invoice discounting?

a.  Invoice discounting is the practice of using a 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. 

How does it work?

a.  Fincobox provides a marketplace/platform for business owners to sell invoices raised on good 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 an advance on their invoices, raised against blue chip/creditworthy institutions, can use our platform to sell these unpaid invoices at attractive rates.

b.  Register yourself with us on our website as a business and we will help you finance your invoices at competitive rates.

What is the eligibility criteria for businesses?

a.  Any business that supplies goods/services to large blue-chip companies can avail the bill discounting services provided by Fincobox. 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.

What is the upper limit for loans on Fincobox?

a.  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 Fincobox’s criteria.

b.  As we provide a short-term investment facility to our investors, we only offer tenures upto 90 days as of now.

What is the maximum invoice discounting tenure?

a.  As we provide a short-term investment facility to our investors, we only offer tenures upto 90 days as of now.

Will Fincobox invoice discounting facility affect my balance sheet?

a.  No. We offer a zero-liability bill discounting service. Since the working capital is availed using invoices, it bears no impact on your balance sheet.

Will my information be shared with third parties?

a.  Fincobox is DED licensed company and is backed by reputable investors, entrepreneurs and managed by professionals. Your information is completely safe and Fincobox follows banking standards for data privacy and security.

What is the Fincobox Tax policy for businesses?

a.  All invoices listed on the Fincobox platform on behalf of the business are purchased by our pool of investors. There would be no tax deducted at source or any other tax implication on businesses.

What happens if Fincobox goes out of business?

a.  Fincobox 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 Fincobox due to any financial/legal reason, money in a member's escrow account will be returned to the respective owners immediately. Money involved in the process will not be transferred to Fincobox's account at any stage (except service fees and government taxes, etc.)

How is invoice discounting different from Business loans?

a.  Most businesses opt for financing options available in the market to tide over lean periods, the most obvious of which is a business loan from banks or financial institutions that help businesses with their short-term operational costs, expansion goals, upgrading equipment, etc.

b.  However, gaining access to loans in India is rather cumbersome due to a number of reasons and the time-consuming processes involved.

c.  The birth of alternative financing solutions, and the revival and modernisation of an age-old financing method called invoice or bill discounting has helped address these problems. Invoice or bill discounting is a practice where businesses sell their unpaid invoices to raise working capital. Not only is it easier to access funds through invoice discounting, but is also quicker when compared to business loans with businesses gaining access to around 80% of their invoice value in just 2-3 days.

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