AltBlu Invoice Discounting: Invest with Established Firms

The investment landscape is ever-evolving, continually presenting savvy investors with new ways to grow wealth. Yet, earning substantial returns while keeping the risks under control often remains a complex challenge.

This is where altBlu by altGraaf steps in, designed to help investors like you diversify your portfolios through invoice discounting with established firms. With altBlu, you can tap into short-term financing options that offer competitive returns while managing moderate risk effectively. Let’s explore how altBlu can fit into your financial portfolio.

What is altBlu? 

altBlu by altGraaf is an innovative alternative investment option that allows investors to participate in invoice discounting from established firms like Jindal Stainless Ltd., and Orient Electric Ltd. With altBlu, you can earn attractive returns typically ranging from 11% to 12.5% over short periods of 30 to 90 days.

What sets altBlu apart is its flexibility, offering two distinct investment options:

1. Full Trade Credit Insurance (TCI) and Escrow Control: This option provides added security by insuring 90% of your principal investment, ensuring peace of mind for your capital
2. Escrow Control Only: This option maintains transparency and security through an escrow account, allowing you to manage your investment with confidence

Both investment options offer you competitive returns while prioritizing security and transparency.

How Does altBlu Invoice Discounting Work? 

altBlu operates on a simple yet transparent model. Established companies with solid credit ratings often require immediate cash flow while awaiting payment from their buyers. To address this need, these companies choose to discount their invoices, allowing individual investors to finance these transactions in exchange for interest.

Here’s how the process works:

1. Invoice Discounting: Established firms discount their invoices to receive immediate cash flow
2. Investor Participation: Investors can finance these discounted invoices, thereby funding the transactions

altBlu With Both Trade Credit Insurance (TCI) and Escrow Control 

The altBlu investment option is one where you are provided with both trade credit insurance and escrow control. Your investment benefits from both trade credit insurance and escrow control. This means 90% of your principal is protecting you against most of the risks associated with buyer defaults.

Let’s see how this process works in detail:

Key Risk Mitigants for altBlu with TCI and Escrow Control 

• 90% Principal Insurance: With trade credit insurance, 90% of your principal is insured, reducing the risk of capital loss significantly
• Escrow Account Management: Using an escrow account ensures that funds are controlled and processed transparently, adding a layer of protection
• Thorough Credit Assessment: altGraaf conducts a careful repayment capacity evaluation before listing invoices on the platform, ensuring only creditworthy parties are involved in the transactions

Risks Involved with Trade Credit Insurance in altBlu Investments 

While trade credit insurance (TCI) adds a significant layer of security to altBlu investments, there are some risks to consider.

Claims Processing Delays: In the rare event of payment delays or defaults, the claims process can take 3 to 6 months to resolve, which may impact your liquidity during this period.

Partial Denial of Claims: There is a slight risk that claims could be partially denied due to documentation issues or disputes between the parties involved, which could affect the recovery of your full investment.

altBlu With Escrow Control and No Trade Credit Insurance 

If you’re comfortable with a bit more risk in exchange for potentially higher returns, altBlu offers an escrow-only option where no trade credit insurance is involved. 

In this variant, your investment is securely handled through an altGraaf-controlled escrow account, but the absence of insurance means that repayment of your funds relies on the buyer’s ability to pay.

However, since altBlu partners with established companies, the risk of default on the buyer’s end is significantly less, providing a level of reassurance despite the added risk.

Here’s a look at the process:

1. Invoice Issuance:

A blue-chip company issues an invoice to a buyer after delivering goods or services. This invoice is then listed on the altBlu platform, giving investors the chance to participate in the investment

2. Investor Participation: 

You invest in the invoice, and your funds are securely handled through an escrow account

3. Payment Settlement: 

Once the buyer makes a payment against the invoice, the funds are deposited into the escrow account and then transferred to you, ensuring the process remains straightforward and secure

Note: Since there is no insurance backup, if the buyer defaults, you may face the risk of losing the invested capital. However, the escrow control adds a layer of safety by managing the funds securely.

Risk Mitigants for altBlu with Escrow Control Only 

• Escrow-controlled Transactions: While there is no insurance in this option, the use of an escrow account still provides a safeguard, as funds are processed securely with minimum involvement of the seller
• Investment in Blue-Chip Companies: altBlu works with established companies that are much less likely to default

Key Risks Associated with altBlu Escrow Control 

Investing without trade credit insurance comes with a higher level of risk. In the event that the buyer defaults, you could face a total loss of your invested capital. While the escrow account ensures that funds are handled securely, your options for recovering your investment in the case of a default are limited.

Understanding these risks is important when considering the escrow-only option in altBlu investments.

Is altBlu the Right Invoice Discounting Investment for You? 

altBlu is tailored for investors seeking to diversify their portfolios with moderate risk while benefiting from partnerships with well-established companies. It offers a structured and transparent investment option, helping you manage risk while generating competitive returns. Ultimately, the decision comes down to your financial goals and risk tolerance. By balancing risk and reward, altBlu provides a flexible, reliable option for portfolio growth and wealth generation.

FAQs About altBlu 

What is the Minimum Investment Amount for altBlu? 

The minimum investment amount for altBlu is ₹95,000.

What Does Escrow Control Mean in altBlu Investments? 

Escrow control is a process where a third party controls the outflow of funds from the bank escrow account as per defined terms. This ensures that the transaction is executed as planned, offering both parties security and trust. The third party also ensures the funds are handed over to appropriate recipients. For altBlu, altGraaf controls the escrow account and manages your funds.

Is my altBlu Investment Secure? 

Your altBlu investment is partially secure with trade credit insurance. However, not all altBlu investments are secured.

What is Trade Credit Insurance in altBlu? 

Trade credit insurance protects the investor from losses if a buyer does not pay their invoice due to bankruptcy, insolvency, or other reasons. In the context of altBlu, it provides an additional layer of security by covering 90% of the principal amount in the event of a payment default.

Grow your wealth with exclusive access to high yield alternative fixed income opportunities from altGraaf. Join us today to gain access to these new-age fixed income products and build a diversified growth portfolio that can be tailored to meet your financial goals and risk appetite.