Inversa's yield outperforms that of the vast majority of investment products

The returns of many mutual funds, deposits, and Treasury Bills are below Inversas yield

Who gives more? This oft-repeated question at auctions is one of the principles by which many investors are guided. Especially those looking for the most profitable products on the market to maximize their returns. The answer? In many cases, Inversa Invoice Market. Inversa's yield far exceeds that of many financial instruments.

The data speaks for itself. In 2022, Inversa's average paid yield reached 6.8 %. And the trend is upward: in the first five months of 2023, this figure rose by more than one percentage point to 7.9 %.

The possibility of such juicy returns is attracting more and more savers, who are beginning to look beyond conventional financial instruments when it comes to investing their capital. Many are already turning to alternative investment systems regularly, investing in alternative financing platforms such as Inversa, where they can finance bills and receive very substantial returns.

While this is undoubtedly one of its great attractions, Inversa's yield is not its only strong point. Users registered in this marketplace boost the real economy, advancing the invoices of all kinds of businesses and supporting the people behind them.

And unlike other alternatives, with Inversa, you don't have to wait months or years for the original capital to be repaid. The interest is delivered as soon as the invoice is completed. And these operations work on a short-term basis, so most savers get their money back in less than thirty, sixty, or ninety days.

However, to understand the advantages of Inversa's yield, it is necessary to compare it with other products.

What returns do other investment vehicles offer?

Recently, the Bank of Spain and Inverco published the profitability data of some of our country's most popular investment instruments, such as Treasury Bills, investment funds, or deposits. And Inversa's yield outperforms practically all of them.

In one of the last auctions of the Public Treasury, three-month Letras offered a yield of 2.91 %. This increased to 3.12 % for six-month Letras and 3.16 % for nine-month Letras. Twelve-month Letras yielded the highest returns, at 3.21%.

It should also be noted that many of the Inversa Invoice Market operations are closed within one or two months, making them ideal for investors who prioritize quick profits. However, if they decide to invest in Treasury Bills, the faster alternative not only takes longer but also provides a return almost five points below the Inversa average.

Let's talk about deposits. In March 2023, the weighted average rate rose to 1.31%. Deposits up to one year rose to 1.36 %, while deposits of one to two years fell to 1.19 %. Overall, these figures represent significant growth since the weighted average rate was below 0.2 % a year ago.

But even so, they are still not enough to combat the effect of inflation, which closed last year at 5.7%, and in May 2023 at 3.2%. And they don't even come close to Inversa's yield.

And what about mutual funds? It depends on the type. Money market funds offer 0.66 %, guaranteed fixed-income funds 0.72 %, euro term fixed-income funds 1.08 %, and target funds 1.12 %. Only two can compete with Inversa's performance: mixed euro equity and Spanish mixed equity, with 9.09% and 7.6%, respectively. But it is not a level playing field.

What is the risk involved in investing in Inversa?

While it is true that the profitability of the latter two funds is notably higher than that of other products, there is an abysmal difference concerning Inversa: the level of risk.

When a person invests in equities, there are hardly any security guarantees. He has no certainty that he will recover his investment and assumes the possibility that he may lose part of his capital. It is precisely this high level of risk that allows the profitability to be so significant.

This is not the case in Inversa, an initiative without room for speculation. In this crowdfactoring platform, savers choose the project they wish to finance, so they know exactly where their money is going and how it will be used. All invoices are audited by independent entities, such as INFORMA and Dun & Bradstreet, to reinforce transparency and point out the risk involved. And the investor can search the internet for all the information he wants, researching the company's financial situation.

But, once again, it's time for the numbers to speak. In 2022, Inversa had a default rate of 0.79 %. In economic terms, this percentage translated into 1.58 % of the total amount. The year 2023, on the other hand, got off to a good start. From January to May, there was not a single unpaid invoice.

This security is all the more valuable in such an unstable scenario as the current one. News of the war between Russia and Ukraine and the collapse of banks such as Credit Suisse have shaken stock markets worldwide in recent months, causing losses in the millions.

However, these events have little impact on the payment of invoices of packaging or shoe manufacturing companies; some examples of the companies that can be financed on Inversa Invoice Market, so the investment is more protected from turbulence.

Why is Inversas yield so high?

Inversa contradicts one of the basic investment principles: the higher the return, the higher the risk. How is this possible? Why does it offer such a high-interest rate without giving up security guarantees?

To understand why Inversa's yield is so high, it is essential to remember that the firm was born in the middle of the rise of the Fintech sector. This sector brings together all companies with financial activities that use technology to develop innovative business models and optimize their clients' experience.

As such, it does not have an extensive network of physical offices, which would increase the costs of rent, personnel, electricity, and material. Unlike conventional banking institutions, which have to cover all these expenses. Inversa's activity is carried out online, so it can allocate these resources to provide more profitability, to encourage investment.

On the other hand, its platform's good design and technical excellence also play a critical role. Because operations occur on the internet, scalability is almost infinite, and it opens up participation to any person or any business anywhere in the world. Germany, France, Belgium, Switzerland, Italy, Portugal, the United Kingdom… Where they come from doesn't matter.

Likewise, the firms that upload their invoices to the marketplace share the same objective: to obtain liquidity. And if they need the resources urgently, they usually offer a higher interest rate to attract investors more quickly and have liquid money as soon as possible to meet their commitments.

For these reasons, Inversa's yield is higher than that of many other investment products—yield that savers can enjoy quickly and with multiple security guarantees.