Only Premium & Super Premium Cards Discussion

[pgarg24]

These are bluechip firms. Will start with small transaction of INR 20-25K

yeah, only Piramal have 50k minimum bro.. rest are much higher.. for ex: ITC is 5lac

 

[kkk]

These are bluechip firms. Will start with small transaction of INR 20-25K

I think minimum is 50k. Please do some research before jumping into Invoice discounting. Just because someone is saying, don't do it.

 

[pgarg24]

I have raised dispute after 14 days with Amex against gyftr.

nyc... what happened after you raised with bank?

 

[Deleted member 9785]

yeah, only Piramal have 50k minimum bro.. rest are much higher.. for ex: ITC is 5lac

Oh thats a bummer. But can listed stock market companies default in this unless they become bankrupt like jet or go airways. FMCG and cash rich companies must be a safe bet with lakhs crores of marketcap?

 

[pgarg24]

I think minimum is 50k. Please do some research before jumping into Invoice discounting. Just because someone is saying, don't do it.

yeah, you also you would want to see tenure, rating... check the news for that company if there are cash flow/profit issues.. basically, everything just to be sure.

 

[Deleted member 9785]

ITC latest deal value - Deal Value : Rs. 27,533,430

 

[4uziaul]

Any ideas about axis and bob?

Check their terms and conditions.

 

[kkk]

nyc... what happened after you raised with bank?

The transaction was removed in the next billing cycle. Amex is very straight forward in terms of dispute, unsure of other banks.

 

[kkk]

Oh thats a bummer. But can listed stock market companies default in this unless they become bankrupt like jet or go airways. FMCG and cash rich companies must be a safe bet with lakhs crores of marketcap?

They can cancel the order if they are not satisfied. Again please go through Invoice discounting. There is full capital loss in such cases. Just search in google Kredex investors lost money, you will find more about full capital loss.

 

[Deleted member 9785]

They can cancel the order if they are not satisfied. Again please go through Invoice discounting. There is full capital loss in such cases. Just search in google Kredex investors lost money, you will find more about full capital loss.

Oh damn so its more to do with risk bet on the vendors /msme and not the big companies alone.

 

[kkk]

Oh damn so its more to do with risk bet on the vendors /msme and not the big companies alone.

Yes. Just think why would bank not buy their invoices?

 

[RewardsAlert]

They can cancel the order if they are not satisfied. Again please go through Invoice discounting. There is full capital loss in such cases. Just search in google Kredex investors lost money, you will find more about full capital loss.

Can you explain a bit, what is meant by not satisfied?
I didn't get the context here.

 

[RewardsAlert]

Yes. Just think why would bank not buy their invoices?

In what sense are they not satisfied?
Are you talking about taking the risk on this app "Falcon" or the listed companies which giving invoicing deals like ITC, Piramal?
Is our risk upon Falcon?

 

[kkk]

Can you explain a bit, what is meant by not satisfied?
I didn't get the context here.

Check this -


Please watch more videos to understand risk involved. There are lot of times you cancel your order if there is fault, right? Same thing can happen here as well.

 

[pgarg24]

Oh thats a bummer. But can listed stock market companies default in this unless they become bankrupt like jet or go airways. FMCG and cash rich companies must be a safe bet with lakhs crores of marketcap?

Can you explain a bit, what is meant by not satisfied?
I didn't get the context here.

ASAIF, taking the example which @kkk bro gave above.

Suppose AB bottles have made delivery(with 1% bottles broken and 9% bottles not as per measurements), now Coca-Cola will raise issues with AB Bottles and depending upon their contract, it's possible Coca Cola will approve only 85-90% of invoice amount for payment.

This loss of invoice amount is taken by Falcon. Now, Falcon will get less money and basically, we would also get less yield. That's why they show Expected yield rather than Rate of return.

It's also possible that Coca-Cola have some cash burn issue and might delay the payment by 1-2 months or they are not satisfied by the bottles(Satisfaction as in - the quality of glass bottle is not as per contract or measurements are incorrect(since coca-cola would have specific measurements for their factories etc) and only pass 50% of the invoice amount. (Note - these kinds of huge amounts of penalties occur rarely, but it's risky as investors).


Please correct me if I am wrong. All of the above understanding was when I was interested in it 2 years ago. But due to covid it was even more risky so avoided at the time.

 

[jack333]

These big companies might be doing some sample quality checking before they buy the whole batch from the manufacturers who are selling their invoices

 

[pgarg24]

These big companies might be doing some sample quality checking before they buy the whole batch from the manufacturers who are selling their invoices

they do but when 10lac bottles will be made by AB Bottles, there are bound to be manufacturing defects, they often have it in their contracts that states 2%(for ex) of the bottles will not be penalized due to defects to give some room to vendors.

 

[kkk]

ASAIF, taking the example which @kkk bro gave above.

Suppose AB bottles have made delivery(with 1% bottles broken and 9% bottles not as per measurements), now Coca-Cola will raise issues with AB Bottles and depending upon their contract, it's possible Coca Cola will approve only 85-90% of invoice amount for payment.

This loss of invoice amount is taken by Falcon. Now, Falcon will get less money and basically, we would also get less yield. That's why they show Expected yield rather than Rate of return.

It's also possible that Coca-Cola have some cash burn issue and might delay the payment by 1-2 months or they are not satisfied by the bottles(Satisfaction as in - the quality of glass bottle is not as per contract or measurements are incorrect(since coca-cola would have specific measurements for their factories etc) and only pass 50% of the invoice amount. (Note - these kinds of huge amounts of penalties occur rarely, but it's risky as investors).


Please correct me if I am wrong. All of the above understanding was when I was interested in it 2 years ago. But due to covid it was even more risky so avoided at the time.

Yeah, these are the risks.

I started this post on how to get more out of credit card reward and now the discussion has moved to pros and cons of Invoice discounting 😛

 

[kkk]

These big companies might be doing some sample quality checking before they buy the whole batch from the manufacturers who are selling their invoices

Yeah they do, but still there is a chance that it can be defect. Sample is like 100 bottles may be but the order is around 1 crore bottles.

 

[RewardsAlert]

ASAIF, taking the example which @kkk bro gave above.

Suppose AB bottles have made delivery(with 1% bottles broken and 9% bottles not as per measurements), now Coca-Cola will raise issues with AB Bottles and depending upon their contract, it's possible Coca Cola will approve only 85-90% of invoice amount for payment.

This loss of invoice amount is taken by Falcon. Now, Falcon will get less money and basically, we would also get less yield. That's why they show Expected yield rather than Rate of return.

It's also possible that Coca-Cola have some cash burn issue and might delay the payment by 1-2 months or they are not satisfied by the bottles(Satisfaction as in - the quality of glass bottle is not as per contract or measurements are incorrect(since coca-cola would have specific measurements for their factories etc) and only pass 50% of the invoice amount. (Note - these kinds of huge amounts of penalties occur rarely, but it's risky as investors).


Please correct me if I am wrong. All of the above understanding was when I was interested in it 2 years ago. But due to covid it was even more risky so avoided at the time.

Thanks for the efforts to explain this in a detailed view.
Now, I have the clarity as to what is referred as not satisfied.
But the major question that arrives is, basis the reasoning made by the invoicing company, can we present it to the bank and claim a dispute.
That too after a period of 30 days? Should we do this Invoice discounting only with Amex, because they value customers more than merchants, and the same way they can issue a refund after 30 days, if such scenario occurs. Need expert advice here!