INVOICE

DISCOUNTING
We would love to discuss our product with you!
Schedule a call

ⒸWintWealth | wintwealth.com
 Introduction Table of Contents
After successfully launching 14+ bonds 1) What is invoice discounting
through our platform, Wint Wealth has 2) Advantages of invoice discounting
decided to bring a new asset class to help 3) Industry overview
investors diversify their portfolios. The new 4) Comparison matrix
asset allows investors to finance business
5) Our asset- details
Invoices through the process of Invoice
6) Risks and its mitigation
discounting. We bring to you this asset
after carefully considering all your 7) How to invest
investment needs and working on feedback
we have received in the past two years.

ⒸWintWealth | wintwealth.com
 What is Invoice Discounting?
Invoice Discounting is an asset class that allows you to
invest in the working capital needs of companies through
financing of invoices raised by these companies.
Usually, any monetary transactions between two
businesses take place on credit basis, meaning the buyer
company pays the seller company only after a set
number of days after the order consignment has been
delivered.
ⒸWintWealth | wintwealth.com
Let’s say, Amazon places an order of 10000 T-shirts worth Rs 500 each with
ABC Retail Pvt Ltd. ABC Retail raises an invoice worth Rs 50,00,000 to
Amazon. But, here’s the problem. Amazon will clear the invoices only 90 days
after it receives the order consignment. So what can the seller do to meet his
capital requirements till then?
This is where invoice bill discounting comes into the picture, by which a 3rd
party financier can step in to provide ABC Retail the working capital
required. This process of selling due invoices to a 3rd party financier is called
Invoice Discounting.
So essentially, there are three entities involved in this transaction:
The Vendor or the Seller who manufactures and/or sells certain goods or
services
The Buyer or the Anchor who buys the said goods/services from the seller and
has to pay them for it
The Financier/Investor who steps in for the interim period before the payment
is credited to the seller
 Advantages of IBD

High Returns Short Tenure Verified Invoices

Reliable Anchor Portfolio Diversification Low Market Risk

ⒸWintWealth | wintwealth.com
 Growth Potential
According to a report by EY-
Market Size
-There is a potential cash opportunity of INR5.2 trillion by optimizing working capital As of 2020, the market size in India 100
performance billion.
-Businesses in India saw an increase of 6 days in cash to cash cycle MSMEs are discounting bills of more than
-9 out of 12 sectors observed an increase in days of inventory 1200 crores every month
-69% of companies extended their payables to offset the effects of the pandemic on working capital
-Cash to cash cycle for small enterprises increased by 14 days

Need
The Way Ahead
Industry
Several Indian MSMEs took a hit in their
All of this points to a need for an urgent
profits due to Covid-19. The lower demand
and higher costs of resources and capital led solution to the problem of working capital,

Overview to the downsizing of production processes,

reduction in operational hours, and a
and Invoice discounting is one of the easiest
and safest ways for these companies to get
complete shutdown of several units. their working capital.

ⒸWintWealth | wintwealth.com
 Comparison Matrix
Asset Class Invoice Wint Bonds Stocks
Discounting
Returns 10-14% 9-11% 11-16%

Volatility NIL NIL HIGH

Tenure 30-90 Days >1 year -

Credit Risk
Dependent on rating, leverage,
High Risk etc. Low in comparison to High Risk
IBD/ Stocks

Market Risk Low Medium High

Recourse Anchor NBFC None

ⒸWintWealth | wintwealth.com
 Risk-Return comparision

ⒸWintWealth | wintwealth.com
 M
at
R

ur
R
XI

ity
22nd
Asset Details 12.5%

Net

Dat
August,2022

e
Anchor-Zetwerk

M ini

~10K ~55 lakhs

Siz e
mu

et
m

ve A

ss
In

st m
ent
ⒸWintWealth | wintwealth.com
 About Zetwerk (Anchor)
Some Statistics
Anchor or Buyer is the party who accepts the goods and
services from the Vendor in exchange of monetary
compensation. Generally, a known company whose
payment flow is structured such that they fulfil invoices Total no. of
Default rate-
60-90 days after the invoice is raised. In our asset, Bills Discounted
0.00%
Zetwerk is the anchor 10280+
Zetwerk offers high-quality production in manufacturing
capital goods, consumer goods, and precision parts. It
partners with companies of all sizes ranging from SMEs
Delayed
and Fortune 500 companies in North America, Southeast
Repayment Rate*-
Asia, Australia, New Zealand, and the Middle East.
Some of Zetwerk’s partners Include Flipkart, Tata Steel, 0.004%
Larsen and Toubro and General Electric.

*Note- Zetwerk has made delayed repayment in 42 invoices till date. All the invoices were repaid in maximum of 5 days

ⒸWintWealth | wintwealth.com
 Risks
CREDIT RISK
The repayment of principal and earnings is
subject to credit risk of the Anchor
(Zetwerk) on which the invoice is raised. The
invoice is raised by the vendor (Lion
Fabrics) and guaranteed by
anchor(Zetwerk), so the obligation of
payment is on the anchor. There is always a
slight possibility of the Anchor going
bankrupt. In case of bankruptcy of Anchor,
a legal proceeding will be initiated against
the Anchor as per the Insolvency and
Bankruptcy Code 2016 and your position in
the waterfall structure will be under the
remaining debts or dues just above
preference/equity shareholders as per
DISPUTE RISK
Once the due diligence is
completed, there can be a dispute
that arises between the Anchor and
Vendor. Dispute risk here refers to
the possibility of disagreement with
respect to the quality of the goods
or service provided by the Vendor
which will lead to material breach
of representations and warranties.
This can lead to a delay in payment.
In extreme cases, this can also lead
to no payment at all.

Section 53 of the Code.

ⒸWintWealth | wintwealth.com
 Risks
LIQUIDITY RISK FRAUD RISK TRADE RISK

During the Fraud risk can Trade Risk

investment exist in case of a exists when a
situation where the
tenure, the small portion
Vendor and the
investor will not of the goods or
anchor mutually
have an services are
indulge in
opportunity to returned due
generating fake
withdraw their invoices without
to defects or
investment prior any exchange of some quality
to maturity. goods and services. issues.

ⒸWintWealth | wintwealth.com
 So, what are you waiting for?
INVEST NOW

Still confused?
Schedule a call
ⒸWintWealth | wintwealth.com