FAQs

About GTX

1. What is GTX?

GTX, operating name for KredX ventures IFSC Pvt. Ltd., is an international trade financing marketplace platform where exporters, importers and financial institutions can interact in transactions involving financing of export receivables

2. What is KredX Venture IFSC Pvt. Ltd?

KredX venture IFSC Pvt. Ltd. is a wholly owned subsidiary of Minion Ventures Pvt. Ltd. KVIPL is regulated by IFSCA (International Financial Services Centre Authority) which is the financial services regulator for all the entities operating in IFSC, GIFT city, Ahmedabad

3. What is the objective of GTX?

Objective of GTX is to facilitate unlocking of liquidity/working capital through banks and other alternate sources of capital, for Indian MSME exporters and importers them.

4. Who are the participants of GTX?

Indian exporters and their importers, Indian importers and their exporters, Indian and foreign financial institutions (Banks, NBFCs, Factoring companies, fund houses) can register themselves on the platform.

5. Will the platform facilitate both factoring and reverse factoring?

Currently, platform offers factoring for Indian exporters. Reverse factoring for Indian importers will be launched soon.

6. How does factoring work?

Factoring helps exporters get gain immediate liquidity against “accepted invoices from the buyers/importers” as against receiving the funds at the end of the payment period, as per invoice terms. This happens when a financier / factor buys their trade receivables at an agreed cost and disburses a certain percentage of the invoice value to them. Factoring/discounting of accepted invoices, is usually offered on a without recourse to the exporter.

7. How does reverse factoring work?

Reverse Factoring is similar to Factoring, only difference being that in reverse factoring, importer approaches the financier / factor for paying the exporter on an immediate basis, on their behalf and the importer pays the Financer/factror at a agreed date in the future and also bears the cost of financing.

8. Does the platform support exporters from services sector?

No. Currently, the platform is available only for businesses dealing in trade of goods.

9. How is GTX different from traditional invoice factoring?

GTX is a marketplace where exporters get access to a number of financiers and the price discovery happens through bidding. In traditional invoice factoring, exporters generally need to negotiate with the financiers one-on-one. GTX platform acts an an intermediary between financiers and businesses, helping connect both the parties and add more efficiency to the already existing processes.

10. What are the currencies allowed on GTX platform?

Currently, platform supports INR, USD, GBP, Euro and other global currencies

Regulatory Framework

Registration

Transactions

1. How do I transact?

Once onboarded, exporters and financiers will receive login credentials to the web application. Inside the web-app, exporters can upload invoices and submit to financiers, and financiers can bid/accept the invoices uploaded by the exporters

2. What is the financial instrument used for trading on the platform?

Primary financial instrument used for trading is the “Export Invoice”. But following supporting trade documents are also required while creating and submitting the Trade Factoring Unit.

Invoice (mandatory and must contain the six digit HS Code – Harmonized Systems Code)

Bill of Lading / Airway Bill / Charterparty Bill of Lading / etc (mandatory)

Shipping Bill (mandatory)

Purchase order (mandatory)

Packing list (as per requirement)

Insurance (as per requirement)

Certificate of Origin (as per requirement)

Inspection Certificate (as per requirement)

Any other documents required by the financial institutions/GTX platform on case by case basis.

3. What is a trade factoring unit?

A Trade Factoring Unit – TFU will contain details of the underlying financial instrument and supporting documents associated with the trade. Sellers (exporters) will create the TFU on the platform. It will carry the following details – details of Seller and Buyer, invoice issue date, due date, tenor in number of days, unique identification number as generated by GTX, account details of Seller / Buyer (for reference of Financier), shipment details etc.

4. Who can create a trade factoring unit?

For factoring, sellers are required to create the TFU

5. Does the factoring unit need to be accepted on the platform?

Buyers can provide confirmation/acceptance on the TFU by signing on to the platform or they can send confirmation over email to the GTX platform.

6. What happens when a factoring unit is accepted on the platform?

Once TFU is accepted by the buyer and it is approved by the GTX platform the same will be available to the financiers for bidding

7. What is the minimum amount of FU created?

There is no minimum amount as of now.

8. What is the transaction window?

Transaction window will be till the due date of the TFU. In addition to this, financiers will have an option to add a validity time period to their bid price

9. Will there be any audit/checks on the genuineness of the invoices?

The correctness and/or genuineness of the invoices raised by the exporters in general conditions will be checked by the Purchasers before the discounting process is initiated. KredX shall in no circumstances, be responsible for any liability arising from or relating to the correctness, validity or defect of the invoices raised.

10. Is the financing and settlement guaranteed on the platform?

The Platform (hereinafter referred to as KredX GTX) is operating an International Trade Financing Services Platform enabling various exporters and importers to avail various types of trade finance at competitive terms. However, the Services provided by KredX shall not include Settlement. Furthermore, KredX shall not take any liability and/or responsibility arising out of settlement or its’ incidentals thereof.

11. What are the costs associated with the transactions?

You may incur the following costs:

The cost of funds charged by the financier, to be borne by buyer or seller, as the case may be

The transaction charges levied by GTX, borne by the party which bears the cost of funds as well as the financier

One time onboarding fees to be borne by all the transacting parties registered on the GTX platform

Settlement