Inverse Invoice Market's Self-Investment Guide

The Auto Invest option is designed for the platform to invest automatically based on parameters set by the investor. Through self-investment, we can design a personalized investment profile where we determine our priorities without needing to log into the platform every time new invoices are published. In this guide, we explain how to do it.

Step 1: Activate

• Activate auto-investment by moving the white dot to the right.
• Do the same to decide whether to activate it for invoices, promissory notes, or both.

Step 2: Define Parameters

Invoices

1. Amount: From €20 with no maximum limit.

*However, there's also the possibility of setting a zero amount range within the generic parameters and then defining different amounts per drawer as exceptions to the range; the exception always prevails over the generic order to invest €0 (See point 9).

For example, if we don't want to deal with medium/high risk but still want to invest in a specific invoice even if it has medium/high risk, we can define a generic range with zero amount for all invoices with that risk and then make an exception for that specific drawer in which we want to invest, either because we know it, because of its track record, etc.

 

2. Administration Type: Public or Private.

3. I Want to Invest in Any Type of Invoice: At this point, we choose whether to apply the previous orders to any type of invoice or only to those that meet certain parameters. In the latter case, the following points are displayed, which we will analyze below.

4. Minimum Interest: Here, we choose the "minimum profitability" from which we are willing to invest.

5. Maximum Risk: It is classified into three categories and takes into account the risk scale from INFORMA.

National Scale:

  - Low Risk (16 to 20)

  - Medium Risk (11 to 15)

  - High Risk (7 to 10)

International Scale:

  - Low Risk (1)

  - Medium Risk (2)

  - High Risk (3)

6. Maximum Term: It is the maximum maturity period of the invoice we are willing to assume; it ranges from 30 to a maximum of 180 days.

7. Credit Opinion: It gives us the option to put "Any", meaning it will invest regardless of the credit opinion, or select an amount as "Minimum Amount" from which we want to work.

8. Credit Insurance: Here we can filter our self-investment only for insured operations.

*We will make a parenthesis here to comment on the peculiarities of the public administration. Once selected, we must bear in mind that as a Minimum Interest it is advisable to put the minimum of 4% as it is the interest at which most are published. In the Maximum Risk section, it will say Public Debt, as no scale is applied. The Maturity Date will always be an estimate of 30 days. As for the Credit Opinion, it already applies Any. Finally, it is important to note that AP invoices are never insured.

Promissory Notes

The only difference compared to invoices is that here we must define one more parameter, choosing between promissory notes payable to order or not payable to order:

   Will it be payable to order? No/Yes

Step 3: Apply Range.

With this last step, our automatic investment range is applied. The ranges will be reflected at the bottom of the auto-invest screen within "My Investments". Each range can be individually removed or all ranges together by clicking on "Delete all".

Let's use an example with the following characteristics for invoices: Amount €100, Private Administration, at 6%, with medium risk, maximum 90 days, with a credit opinion of €100,000, and insured. We leave the promissory notes deactivated.

If our marketplace were as follows:

In Fergofresco, since the option of promissory notes is deactivated, it will not invest.

In Marfrío, it will not invest because it does not meet the maximum risk established, a rating of 9 is considered medium/high. Nor would it meet the term as it is 104 days, and we have set a maximum of 90.

In Mar Cabo, it will invest because it meets all the parameters. The interest of 8% is higher than the minimum 6% we set, the risk rating is low international risk, the credit opinion of €603,800 is much higher than the minimum set of €100,000, the term of 88 days does not exceed our maximum of 90. And finally, it is insured.

In Consorcio, it will invest because, like the previous one, it meets all the requirements of our range.

9. Finally, we can choose a specific drawer to invest in, for this, we will go to the bar of the created range and under Drawer click on "View Associates". A list of available drawers will appear, after choosing it, we will put an Amount per investment and a Maximum Amount in the set of investments in the case of drawers whose publication is recurrent, that is, it will invest us in different invoices from that drawer until reaching the established amount as maximum. Suppose we put:

Amount per invoice 100€

Maximum amount for that drawer 500€.

It will invest one hundred euros in each invoice from that drawer until reaching those five hundred total investment in it. In this case, it would reach five invoices (5*100=500).

To finish, we click on "Add Drawer".

We can also use this last tool for the opposite, i.e., not to invest in a specific drawer. How to do it? Simply put in Amount= €0 and that will be exactly what it invests, €0.

*When making automatic investment, what is established here will be prioritized over previous orders.

As we see, the possibilities of self-investment are multiple and will limit our investment more or less, each one will have to choose their priorities and opt to define a more or less conservative portfolio.