The low interest rate environment has created demand for yield investors to seek diversification into new and alternative asset classes. The rise of FinTech and demand for alternative credit has created opportunities for investors to diversify their portfolio by investing into discounted invoices.
Our very own Andrew Petris, Co Founder and Head of Investors for Timelio, and Adam Pinkus, Investment & Supply Chain Finance Manager, presented a Webinar recently via BrightTALK.
In the session (that you can re-play on demand by registering here) they covered how investors can gain access to an uncorrelated, liquid asset class previously only available to banks and specialist finance companies.
Andrew also introduced investing in invoice finance, what it is and how it works explaining, “The business wanting to access early payment and improve cash flow will sell the invoice to a financier before its due date. Typical financiers would advance up to 90% of the invoice value.” he continued.
Adam discussed how investing in discounted invoices fits in the marketplace, “Lending in this space has historically only been available at the institutional level. The increase in FinTech and alternative lending has led to a rise in marketplace/peer to peer models across a variety of asset classes” he said. “Invoice Finance marketplaces are an attractive option for investors to generate diversified returns and access to an alternative asset class.” he explained further.
Timelio provides access to discounted invoice investments and options for how this can be used to diversify a portfolio with desired risk and return preferences. This can be done by directly selecting invoices that you choose to construct your portfolio or by investing into the Timelio Capital Fund to achieve a diversified and managed investment.
The Timelio team explained, “Our products have minimum investment criteria and are open to wholesale investors only. Our investor origination expands across HNW, Fund Managers, Superfunds and Institutional investors both locally in Australia and offshore.”
Security and risk was also explored in the webinar with Adam explaining, “One way we mitigate risk is reviewing the “seller quality” which includes ensuring financial due diligence is sound, setting up ongoing monitoring and reviewing tax liability as a key part of this process.”