Frequently Asked Questions
Clear, transparent answers about how InvoiceFlow handles working capital and investor capital allocation.
For MSMEs
How does invoice discounting actually work?
You upload an unpaid invoice from a verified corporate buyer. Once verified by our risk team, the invoice is listed on our platform. Investors fund the invoice, and you receive the discounted amount immediately (e.g., 90% of the invoice value minus fees). When the corporate buyer pays the invoice on the maturity date, the transaction is settled.
How are platform fees calculated?
InvoiceFlow charges a flat, mathematically calculated percentage based on the invoice value and the duration until maturity. The exact discount rate and platform fee are clearly displayed before you accept the funding offer. There are absolutely no hidden charges.
What is a pre-closure, and can I do it?
Pre-closure occurs when the corporate buyer settles the invoice before the stated maturity date. Yes, this is supported. In such cases, the yield paid to investors is prorated to the exact number of days the capital was deployed, and the remaining margin is returned to the MSME.
For Investors
How do investors earn returns?
Investors earn returns through the risk premium attached to the invoice. By purchasing a portion of the invoice at a discount, investors receive their principal plus the predefined yield when the invoice reaches maturity and is settled by the corporate buyer.
How are yields determined?
Yields are dynamically determined during the administrative audit phase. The platform calculates a risk premium based on the corporate buyer's creditworthiness, the MSME's track record, and the time to maturity. This yield is locked in before the invoice is listed.
Is fractional investment supported?
Yes. To allow for proper risk diversification, high-value invoices can be funded by multiple investors. The platform automatically calculates the exact fractional allocation and corresponding payout splits at settlement.
General Platform Operations
Why is KYC mandatory?
As a platform facilitating financial transactions, we are strictly bound by regulatory compliance. Aadhaar and PAN verification are mandatory to prevent fraud, ensure tax compliance (TDS), and maintain the institutional integrity of the platform.
How secure is my data?
InvoiceFlow uses Row-Level Security (RLS) at the database level. This means it is cryptographically impossible for an MSME to view another MSME's data, or an investor to view another investor's allocations. Your financial data is securely isolated.