Introducing Multi: Revolutionizing Invoice Discounting Investments

Overview:

Inspired by our recent webinar, this blog talks about our innovative new product, Multi, which redefines how you can diversify your investment in invoice discounting. Read through to discover how Multi works, its benefits, and how it mitigates risks to safeguard your investments. To watch full video of this webinar and know more about Tap Invest Multi click here.

Tap Invest: Simplifying Fixed Investments

At Tap Invest, our mission is to make fixed income investments accessible and transparent for retail investors in India. Our platform offers various fixed-income products designed to provide stable and safe returns allowing you to diversify your portfolio beyond traditional investments. Our offerings include:

1. Asset Leasing: Investments with an IRR of 18-24%, offering monthly lease rentals and a buyback option at the end of the tenure.
2. Invoice Discounting: Short-term investments with an IRR of 12-14%, allowing you to invest in company invoices and receive returns upon repayment.
3. Bonds: Unlisted bonds with returns ranging from 13-16%, with tenures from 9 to 24 months.
4. P2P Lending: Directly lend money to businesses/Individuals for tenures of 3 and 6 months and get up to 12% returns.

What is Tap Invest Multi?

Multi is Tap Invest’s latest addition to our product suite, designed to enhance the traditional invoice discounting experience. While invoice discounting typically involves investing in a single company’s invoices, Multi allows you to diversify your investment across a pre-selected pool of invoices from various companies. This approach minimizes the risk associated with any single company defaulting on its payments.

How Does Tap Invest Multi Work?

Multi simplifies the investment process in invoice discounting by automatically spreading your investment across multiple invoices from different companies. Here’s a step-by-step breakdown of how Multi operates:

1. Selection and Pooling: Our business team collects and aggregates outstanding invoices from various companies, creating a diversified pool.
2. Investment Diversification: When you invest in Multi, your funds are distributed across this pool, ensuring that no single invoice represents a significant portion of your investment.
3. Proportional Returns: As companies in the pool repay their invoices, the funds are collected and distributed proportionally to all investors based on their share in the pool.
4. Ongoing Monitoring: We continually monitor the companies in the pool to manage risks and ensure timely payments.

Benefits of Tap Invest Multi:

Multi offers several advantages over traditional invoice discounting:

1. Diversification: By investing in a pool of invoices from multiple companies, you reduce the risk associated with any single company defaulting on its payment.
2. Reduced Risk: Diversification lowers the potential impact of defaults or delays in payments, providing a more stable investment environment.
3. Streamlined Investment: Multi simplifies the investment process by allowing you to invest in a pre-selected pool, eliminating the need to individually evaluate each company’s invoices.
4. Enhanced Security: We employ triple-layer security measures, including thorough checks on regulatory compliances, post-dated checks, and e-NACH mandates, to secure your investments.

Risk Mitigation with Tap Invest Multi

At Tap Invest, we prioritise both security and reliability. Here’s how we mitigate risks with Multi:

1. Diversification: Spreading your investment across multiple companies reduces the risk of significant loss due to a single company’s default.
2. Rigorous Screening: We carefully select invoices based on strict financial checks, including credit profiles and past performance, ensuring that only credible companies are included in the pool.
3. Security Measures: Our security protocols, such as post-dated checks and e-NACH mandates, are designed to protect against defaults and ensure timely payments.
4. Active Management: Our team actively monitors the payment status of invoices, sending reminders and following up with companies to ensure timely repayments. In rare cases of defaults, we leverage legal measures to maximize recovery.

User Experience and Feedback:

Since its launch, Multi has received positive feedback from our users. The product is seamlessly integrated into the Tap Invest platform, where you can view details about the pool, including company-wise distribution and financial performance. Our intuitive interface simplifies the investment process, making it easy for you to diversify your portfolio with just one click.

FAQs About Tap Invest Multi:

During our webinar, we addressed several questions about Multi:

• How frequently are new deals available?

 We are continuously onboarding new companies, with several deals expected each week.

• How does Multi compare to single-company invoice discounting?

 Multi offers lower risk through diversification. While the IRR might be slightly lower than single-company deals, the reduced risk makes it a valuable addition to your portfolio.

• How are risks managed if a company defaults?

 Diversification in Multi means that even if one company defaults, the impact on your overall returns is minimised. Additionally, our security measures and active management ensure that defaults are rare and managed effectively.

Conclusion:

Multi is a game-changer in the world of invoice discounting, offering a diversified, secure, and simplified investment experience. We invite you to explore Multi on Tap Invest and enjoy all the benefits offered. Your feedback is crucial to us as we continue to enhance our motto of simplifying investments for all.

Stay tuned for more updates and join us in our upcoming webinars to learn more about our innovative products. Happy investing with Tap Invest!

Ready to diversify with Multi? Visit Tap Invest today and start investing with confidence.