Invoicemart, a joint venture between Axis Bank and mjunction services, is a digital platform that connects MSME suppliers and corporate buyers to multiple financiers. It enables sellers to sell their invoices to financiers, thus unlocking working capital quickly. Invoicemart is a Trade Receivables Discounting System (TReDS) platform set up to resolve the credit challenges faced by the MSMEs.

How does Invoicemart work?

In Invoicemart if a seller uploads an invoice, the platform creates a Factoring Unit (FU). This FU contains details of the invoice in digital format. Once the buyer accepts the FU, it is sent to financiers for bidding. Financier bids for the invoice and sellers accept the most suitable bid and get credited within T+1 day, buyer pays financier on the due date.

In other scenarios where the buyer uploads the invoice creates a FU and accepts the best bid from a financier ( here a bank). The seller gets credited within T+1 day and the buyer pays the financier on the due date. This process is generally called reverse factoring.

Factoring (or reverse factoring), discounting is different jargon used via different platforms. Here in these invoice discounting platforms credit is extended to seller basis on the creditworthiness of the buyer. Invoicemart has 100+ buyers on its platform with the below-mentioned financial partners.

(Image, Flow Diagram and Information Source: Invoicemart.com)