Hi investor today we will talk about Low Risk High Return Investment, safe investments with high returns in India 2023, low risk investments India, low risk high return investments India, low-risk investments examples read full article to understand better
In today’s article, we will tell you the method of such investment. By using which you can get high returns at low risk.
Most of the people will ask you to invest in share market to get high return. For which you have to first open Demat Account.
But it is not so easy to get high returns by investing in the share market. If you know well about share market then you should definitely invest.
Low Risk High Return Investment – Invoice Discount
If you do not know about share market, but you still want to get high return at low risk by investing your money. Then you must read this article completely from beginning to end.
So friends, do you want to invest in such a place, which is not linked to the share market. Despite this, give you high returns, perhaps this is the reason why most people invest in PPF instead of investing in the share market.
Because even though PPF gives them a return of 8%, but we do not have tension about this. That tomorrow all our money will be drowned, so people prefer to invest money in PPF instead of share market.
So keeping this in mind, we are going to tell you about one such investment in this article. Which is not directly or indirectly linked to the share market in any way.
Despite this, it gives you returns ranging from 11% to 12%, which is much higher than PPF. Apart from this, you do not even need to wait for 15 years like PPF.
In this you can get profit within one to two months. In this you do not have to wait for a long period of time. So friends, the name of this investment is Invoice Discounting.
What is Invoice Discounting ?
When we first heard about invoice discounting, we found it very interesting. That’s why we started collecting more information about it so that we can share it with you.
As you all know that the back bone of the economy of any country is small business. There are thousands and millions of small businesses in India that need cash to expand their business or run operations.
In such a situation, it is very difficult to manage your cash flow through these small businesses. how? To understand this, we give you an example. for example –
Suppose there is a small vendor named SandyBottles, now what does Sandybottles do. As the name suggests, he manufactures bottles.
Now suppose that one day a call comes from Pepsi company near Sandybottles. That we need 2 lakh bottles from you, in which we will sell cold drinks to the customers in front of them.
The owner of SandyBottles becomes very happy, because a big customer has come to him. If he successfully fulfills his demands this time, then in future use it will increase the chances of getting bigger orders.
But one issue in this is that Pepsi company says this from Sandybottles. That we will take 2 lakh bottles from you now, but we will not pay you for it now.
We will pay it to you after 3 months from the delivery date. Now the owner of Sandybottles has two options that he should let this big deal go from his hands or else arrange the money from anywhere.
But since SandyBottles is a small company which is currently growing. Banks do not give loans to such small companies quickly, as well as these small business companies take a lot of time to take business loans.
Now SandyBottles has only one option if he wants to do this business. So he has to accept this deal. Otherwise, this big customer will go to someone else in the market, due to which there will be a big loss to his business both in present and future.
Now just imagine this small company needs money to fulfill this big order. He will get the payment of the goods which he delivers after 3 months.
During these three months, he has to pay the salary of his workers as well as buy raw material for making bottles from the market.
An option with Sandybottles is to take a loan from the bank. But banks also have their own terms and rules under which they can give business loan to any business owner.
The company or business we are talking about is so small that it does not fit the rules and terms of the bank. Now Sandybottles have only one option that they can borrow money from the market or from the people they know.
Now the owner of Sandybottles will go directly to the people to give him the money there. For this he goes to the public and says that you give me 12 lakh rupees now.
Then you will get Rs 13 lakh after 3 months, now you will ask why should we trust you. So the owner of Sandybottles will show you the invoice of Pepsi company, which promises to pay Rs 13 after 3 months.
That is, it happened that after order delivery of Sandybottles pepsi, after three months, he would be paid Rs 13 lakh. In the meantime, Sandybottles must have earned their profit and since you had taken their 13 lakh invoice for 12 lakhs, you will get a profit of 1 lakh.
How to Invest in Invoice Discounting?
If you want to invest in invoice discounting, then our advice is that you should buy invoices after thinking carefully. You should always purchase invoices of such companies which you already know.
Like coca cola, flipkart, pepsi, etc. All these companies are very big, so they will not cheat you. This company will definitely make payment to the vendor from whom you will purchase the invoice of these companies.
But still, before investing you have to check that everything is correct. Now let’s talk about how you can invest in invoice discounting?
We know that like ravi bottles, there are many such small businesses which are in need of money right now. We are those people or investors who can give money to those small business right now.
But now the question is how the vendor and investor can find each other, there are many online platforms for this. Like TradeCred or is a reliable online platform for both investors and vendors.
Benefits of Invoice Discounting
If you invest in invoice discounting, then after 90 days you get your money back with profit.
If you invest in FD RD PPF or other schemes in the bank. So you have to hold them for a fixed time period.
But in invoice discounting, you will get your money back with profit within 90 days. Suppose you pick up an invoice discount of Rs 100 from trade cred vendors for Rs 80.
Then after that sell that invoice to online investors for Rs 80 only. Now when pepsi company will make full payment to ravi bottles.
So the trade cred will get 100 rupees, out of which he will get his percentage which ranges from 7.5 to 8%. He himself will keep the remaining 11.5 to 12% profit and will return you.
Risk in Invoice Discounting
Friends, if we talk about risk, then in every kind of business and investment, there is a little or more risk. In the same way, there is a risk in discounting the invoice, this risk is low but it is. So let’s know –
Credit Risk:
1. Brand matters:
If you buy an invoice of a brand that you do not even know yourself. So you may have a loss in this, now if you buy invoices of companies like cocacola, britania, flipkart.
There are very few chances that you will suffer loss, because all these companies are very big companies. She does not cheat anyone quickly, especially when her brand name is being used.
Therefore, whenever you buy the invoice of any companies, before that you must check this. How big is that company, what product does it make and how trustworthy is it.
2. Insolvency:
This means that suppose you have bought an invoice of a small business vendor. In which company “b” was to be paid by company “a”, you have bought that invoice from company b.
Now suppose that company “a” places an order of 10 lakhs to company “b”. The vendor picks up Rs 10 lakh from the market by discounting the invoice.
But after delivery, there is some defect in the product due to which company “a” refuses to pay to company “b”. In such a situation, your money can sink, so it is very important.
If you are taking invoice of small business company from a vendor. So you should keep in mind whether that new company will give you return money on the vendor’s invoice or not.
3. Dishonorable Invoice:
In this, all those invoices come which are not paid or will not be due to any problem. But still there are many such vendors who come to these online portals with such dishonorable invoice and sell the invoice.
4. Disputed Invoice:
Disputed invoices are those invoices whose payment is not possible due to any dispute. Suppose ravi bottles sent 2 lakh bottles to pepsi company.
But later ravi bottles get a call from pepsi company and they say that. Your bottles are not right, it is breaking again and again, so we will not make full payment or will not pay at all.
Now this was the invoice that you have purchased, this invoice has now become a disputed invoice. Where the vendor is not getting paid, that too from a company which is very big as well as branded and is also trustful. But due to the dispute created between the vendor and the company, you could not get your payment.
Therefore, we advise you that you should avoid buying all such invoices. For this, you buy those invoices which orowealth is bringing on these online portals.
Because orowealth does not upload any invoice on the site by buying it directly from the vendor. Rather, he confirms those invoices with those companies, which are going to pay those invoices.
So that taking invoice from orowealth becomes more reliable. Apart from this, orowealth gives us the option of instant liquidity up to 5 lakhs.
Suppose you have taken orowealth invoice for 1 lakh rupees, now you will have to pay it after 3 months. But if you want money back in an emergency, then orowealth also gives its option.
After deducting some 1 or 1.5% on your 1 lakh rupees, he sends the remaining rupees to your account instantly. While this option is not there on any other online portal, that’s why orowealth is the best in this matter as well.
Because if suppose that orowealth does not get the payment of the same invoice which you had bought later. So this will cause loss to orowealth, but still he is ready to bear this loss.
In return, he deducts 1 to 1.5% from your invested amount in the form of charges. Apart from this orowealth gives you another service.
Suppose you buy an invoice from orowealth, now after 90 days you do not get the payment of that invoice. So in such a situation, to save you from more loss, orowealth will return your money after seeing your total loss.
Whereas apart from orowealth, no one else gives you this option. This is the reason why we are asking you to get a certified invoice from orowealth.
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Conclusion
Hope friends, you must have liked this article, if you do not know much about invoice discounting. So we advise you to first read and understand more information about invoice discounting.
Then after that you should invest in invoice discounting. Because we should never invest our money blindly.
If you liked this article then share this article with your friends. Those who want to invest and want to create their wealth as soon as possible.
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