Lenders FAQs

  • General Questions
  • How It Works
  • Risk Management
  • Invoice Discounting

General questions:

Individual Resident Indians

HUF / Proprietorship Registered in India

Institutional Entities

Banks, NBFCs and other Financial Institutions

NRI Individuals (Provided you have an NRO account and comply with basic predefined KYC guidelines, i.e., PAN card and valid Indian address proof)

Invoice discounting is the practice of using a company's unpaid invoices to raise working capital & fulfill its financial needs. Traditionally, financial institutions including banks and NBFCs have been discounting invoices for MSMEs. FLEXI P2P provides a platform to enable financing the invoices in digital and safe manner.

FlexiP2P provides a marketplace/platform for business owners to raise finance and Lenders to lend against the invoices raised on blue chip companies. Lenders looking to lend money for a short term (30-90 days on an average) can earn attractive returns on their investment by lending these invoices. It combines the best in class technology experience with credit underwriting & data analytics capabilities to create a brand new investment asset class.

Register yourself with us on our website as a lender and we will help you park your investments in this unique asset class with varying maturity periods at an attractive risk-adjusted rate.

FlexiP2P provides a technology platform to connect MSMEs and investors/lenders and execute transactions between them. FlexiP2P provides certain tools, for example - credit report of the borrower and counterparty among others - to make a calculated investment decision.

FlexiP2P does not guarantee any fixed return to its lender and the lending would be subject to the traditional market risk associated with invoice discounting. Please refer to the various reports made available on the platform during deal purchase for details.

FlexiP2P takes safety of your financial information seriously. We follow RBIs guidelines with respect to Information Security.

Information about borrowers or lenders is kept confidential and not shared with any third parties. Contact details such as e-mail id, phone numbers are also not shared between borrowers and lenders. For further details, please refer to our Privacy & Security Policy.

How It Works

As of now you can start with a minimum of INR 10,000/-

Signing up on FlexiP2P is very simple you can also just provide your contact details on our website and our relationship managers will contact you to complete the registration process.

As a part of our KYC norms, we will need a small set of documents to ascertain your Lender's status. Once those documents are received and vetted, you will receive an email from us notifying you of your account post successful onboarding.

As an investor or lender, you can decide the amount you want to invest in any invoice. You can either partially or fully fund an invoice. 

Please Note: As per RBI guidelines, an investor or lender can lend a maximum of ₹50,000 per borrower.

Log into your Netbanking/mobile banking app > Click on Add Payee > Select Other Bank Accounts > Enter the details > Save/Confirm the same.

Please Note: AXIS bank account holders are requested to add the escrow account as an external bank account.

The minimum tenure of the investment is linked to the invoice payment date. Each invoice will have a different maturity period. Historically, we have seen this range from 30 days to 90 days.

Risk Management

Flexi P2P takes the safety of your financial information seriously. We follow RBI's guidelines with respect to information security. Information about borrowers or lenders is kept confidential and is not shared with any third parties.

Contact details such as email IDs and phone numbers are also not shared between borrowers and lenders. For further details, please refer to our Privacy & Security Policy.

Any investment comes with associated risks, which could include total capital erosion. However, we have taken several steps to mitigate these risks—both strategically and operationally:

  1. Comprehensive risk management framework – We perform detailed credit analysis of sellers and their financials at onboarding.
  2. Verification process – Invoices are verified both physically and digitally.
  3. Strong legal framework – All sellers are required to sign our legal agreements, ensuring that investors and lenders are well protected.
  4. In case the counterparty does not pay the invoice – Our MSME borrower remains liable to pay the amount owed to the investor or lender.
  5. In case the MSME's business collapses – The counterparty would still pay the invoice money, and the payment will be made directly to the escrow account, which will be transferred to the investor.
  6. Flexi P2P’s role – FLEXI P2P is a tech platform and does not assume any credit risk on behalf of the investors.

At the business-onboarding stage, we follow a three-pronged approach for 360-degree credit assessment of borrowers.

Borrower - 7-stage credit score

  1. Promoters score
  2. Business score
  3. Financials score
  4. Banking conduct score
  5. Bureau score (personal bureau report)
  6. Bureau score (commercial bureau report)
  7. GST score

Counterparty - 3-stage credit score

  1. Credit rating of the counterparty
  2. Financials score
  3. Market news + Crimecheck score

Trade history checks

  1. History of the working relationship between the MSME and the counterparty
  2. History of payments between the MSME and the counterparty

In line with RBI guidelines, all your funds are managed by a bank-owned trustee through two dedicated escrow accounts held with Axis Bank.

Flexi P2P, in collaboration with its partner bank, facilitates the opening of an escrow account for each individual member. All transfers of funds occur through these escrow accounts. In the event of liquidation of FLEXI P2P for any financial or legal reason, the money in the escrow account will be returned to the respective lenders immediately.

Money involved in the process will not be transferred to FLEXI P2P's account at any stage, except for service fees and government taxes, etc.

Invoice Discounting

The platform does not determine discount rates for invoices. Instead, investment returns depend on the credit rating of the borrower and market dynamics driven by supply and demand. Prior to investment, investors are provided with anticipated yields for transactions, ensuring informed decision-making before fund allocation.

Invoice financing represents a specialized product within asset-based financing, offering minimal risk and superior returns on investments. In advanced economies, it has become a significant investment avenue. Our invoice financing platform ensures elevated short-term yields for investors.

We mitigate investment risks through conservative and evolving risk management policies. Drawing from our expertise in MSME financing, we cater exclusively to the lowest risk segment within the domain.

According to updated RBI guidelines, the following limits apply to individuals lending on P2P platforms:

  1. A lender can lend a maximum of ₹50 lakhs across all P2P lending platforms.
  2. A lender can fund a maximum of ₹50,000 per loan.
  3. The maturity of the loans must not exceed 36 months.