Invoice & Supply Chain Financing

Short duration. Cash-flow backed. Anchored to reputed counterparties.

Invoice and supply chain financing transactions are expected to constitute a substantial portion of the portfolio. The book is built around short-duration, self-liquidating exposures involving established counterparties and commercially verifiable transactions.

Tenor

30 – 90 days

LTV cap

≤ 80%

Allocation cap

None

Origination focus

Where we look first.

The Fund prioritizes transactions originated within established commercial ecosystems where counterparties, documentation and payment behavior are already well understood.

Well-established businesses
Reputed counterparties
Recognized corporates
Financially stable debtors
Organized & traceable supply chains

Underwriting framework

Five layers of diligence.

Every transaction is screened against the same five-pillar framework before it enters the portfolio.

1. Counterparty Quality & Market Reputation

The Fund intends to primarily finance invoices or receivables associated with reputed and well-graded counterparties.

Well-graded or highly reputed customers
Companies with established operational track records
Strong market credibility and payment history
Counterparties with recognized brand presence or industry standing
Stable commercial relationships within their sector

Manager evaluates

• Industry reputation
• Credit standing
• Historical payment trends
• Market perception
• Business continuity
• Operational stability

2. Existing Business Relationship Evaluation

Preference is given to vendor–debtor pairs with verifiable, recurring trade activity that reduces counterparty uncertainty.

Ongoing or recurring commercial relationships
Verifiable historical transaction activity
Identifiable payment cycles and trade patterns
Long-standing supply chain relationships

Manager reviews

• Duration of business relationships
• Historical transaction volumes
• Past invoice settlement behavior
• Repeat order frequency
• Commercial dependency analysis

3. Healthy Cash Flow & Payment Cycles

Underwriting prioritizes predictable conversion of receivables to cash and sustainable working capital behavior.

Predictable cash conversion cycles
Consistent receivable collections
Sustainable working capital behavior
Reasonable payment durations

Manager assesses

• Historical receivable aging
• Collection efficiency
• Operating cash flow trends
• Debtor payment timelines
• Liquidity indicators
• Business seasonality risks

4. Invoice & Transaction Verification

The Fund only invests where the underlying commercial transaction is verifiable, enforceable and undisputed.

Underlying invoices are genuine and enforceable
Goods or services have been delivered or completed
Payment obligations are contractually valid
No material disputes are identified
Supporting commercial documentation is available

Verification procedures

• Invoice validation
• Purchase order review
• Delivery confirmations
• Counterparty confirmations
• Financial and operational due diligence

5. Risk Controls

Each transaction is sized within portfolio-level guardrails on concentration, leverage and jurisdictional exposure.

Diversification across sectors and counterparties
Loan-to-value ratios
Concentration exposure
Legal enforceability
Jurisdictional risks
Macroeconomic and industry-specific risks

Operational control

Operational control for invoice & supply chain financing.

Every receivables transaction is wrapped in layered cash-flow control and credit protection — repayment doesn't depend on the borrower's intent to pay.

Escrow-based collection

Debtor payments are routed directly into a controlled escrow account — funds never touch the borrower's operating account before the Fund is repaid.

Personal guarantees & securities

Each transaction is backed by promoter personal guarantees and, where applicable, additional collateral or charges over business assets.

MOU with corporate customers

Memorandums of Understanding with the underlying corporate debtors lock in payment confirmation, no-set-off and direct-pay obligations to the escrow.

Credit insurance

Where commercially viable, receivables are wrapped with trade credit insurance to mitigate debtor default and concentration risk.

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