What is a Strategy?
A strategy is an automated investment plan that a funder can configure to automatically purchase the invoices that:
provide a desired return for a desired investment tenor
are approved by invoice payers that fit a desired industry, country, turnover, leverage ratio, cover ratio, capitalization and currency

Where can I find Strategies?
Strategies can be found in the Strategies page of the investor portal.

Strategy Configurations
Strategies have the following configurable parameters:
Strategy Name – The name you want to give the strategy
Expected annualized return - Annualized return for invoices purchased through the strategy
Term - Estimate tenor of invoices that will be purchased through this strategy
Currency - Currency of the invoices that will be purchased through the respective strategy
Deal size - Approximate size of the investible invoice payables a payer may have. We calculate this by taking a snapshot of the invoice payer’s payables at various times of the year.
Country of the Payer - Payer's country
Industry of the Payer - Payer's industry
Obligor turnover - Payer's turnover
Leverage Ratio - Payer’s Net Debt/EBITDA
Cover Ratio - Payer’s EBITDA/Interest Expense
Capitalization - Payer’s Equity/Total assets
Limit per one payer as a % of amount - This configuration allows you to diversify your risk by spreading the amount you choose to invest in every invoice payer that fits the investment strategy you set. For example setting 10% would ensure that the strategy invests a maximum of 10% of your strategy amount into any given invoice payer that fits your strategy’s investment parameters.
Investment horizon - Estimate of the period you want to keep your funds deployed in the given strategy. We use this information to plan and manage future funding. If you want to cancel funding through any strategy you will need to manually cancel the given strategy.
Wallet - This is will be the source of funds for the strategy. We will allocate the amount of funding you set from the chosen wallet into the strategy. All transactions related to the given strategy will be made to/from the selected wallet.
Amount - This is the amount you want to invest in the strategy. Please note that the amount you enter will be set aside from your wallet.
FX Hedging - When investing in invoice payers with alternative currencies you will have the option to FX hedge repayments. If you choose to FX hedge we will automatically book forwards to hedge against fluctuations in exchange rates. Also note that if you choose to FX Hedge, an additional margin of 5% of your investment will be reserved from your wallet. This amount will be returned to your wallet when you stop hedging the given strategy or when you close your investment in the strategy. The margin will also decrease/increase proportionally to your strategy investment amount.
Reinvest returns - If set to true, all returns from the strategy will be reinvested into the strategy increasing your strategy amount.
Pay out my returns - If set to true, all returns from the strategy will be paid out to your wallet and disbursed to your bank account on a monthly, quarterly or annual basis based on your preference. You can edit the frequency of payouts in your wallet. Any losses you incur from defaults will be applied to the investment amount you allocated for the strategy. If you choose to cancel a strategy your non-utilised funds within the strategy will immediately be released to your wallet and your utilised funds will be paid into your wallet as and when they mature.

Pre-requisites to creating an investment strategy
To create an investment strategy you will need to:
Deposit funds into the wallet you wish to use for the given strategy
Add and validate the bank account you want us to to use to payout your earnings/returns
Set the frequency of payouts (monthly, quarterly, annually) for the wallet you choose to use (Please note that each wallet has its own independent payout settings). We will calculate the payout dates and pay out your returns on the 10th of the given payout month.

How to create an investment strategy
Go to the Strategies page. You can find the link to in the menu of the funder portal. The Strategies page showcases all Strategies you’ve created and also includes a “Create Strategy” button that allows you to create new strategies.
To create a new strategy click the “Create Strategy” button. You will be redirected to strategy setup page which will allow you to set various investment strategy parameters which you can read more about here.
Once you’ve entered all the required fields you will be able to complete your investment by clicking the Save Strategy button.
Once clicked the strategy amount you set will automatically be reserved from your wallet and the system will start purchasing eligible invoices respective to that strategy on your behalf. Please note that:
Strategies will only be able to purchase invoices that have not already been purchased by through Deals or Dynamic Discounting. Deals take the priority over strategies and Dynamic Discounting takes priority over both Deals and Strategies.
We will share the purchase of an eligible invoice between the funders whose strategies have appetite for that given invoice. For example if there are three funder strategies interested in purchasing an invoice then we would share the purchased invoice three ways between the funders.
If you choose to FX Hedge, an additional margin of 5% of your investment will be reserved from your wallet. This amount will be returned to your wallet when you stop hedging the given strategy or when you close your investment in the strategy. The margin will also decrease/increase proportionally to your strategy investment amount.

How do I view strategies I've invested in?
All the strategies you invest in will be showcased in the Strategies page with the following parameters:
Strategy name - Name of the strategy
Currency - Currency of the invoices that will be purchased through the respective strategy
Country - Payer's country
Invoice Payer - Names of the invoice payers that fit the strategy’s parameters
Return p/a - Annualized return for invoices purchased through the strategy
Term - Estimate tenor of invoices that will be purchased through this strategy
Exposure - The funds you currently have invested in invoices that have either not matured or not been settled
Limit - The amount you have decided to reserve for the given strategy. It also represents the maximum exposure for the strategy
Utilisation – The % of the strategy amount that is currently invested

Updating the investment parameters for a given strategy
Select the Edit icon for the respective strategy you want to edit on the strategy page
Switch the respective parameters as desired
Save your changes

Increasing/Decreasing your limit or investment amount in a strategy
Select the Edit icon for the respective strategy you want to edit on the strategy page
Enter the strategy amount you want to set. If you have any exposure in the given strategy you will only be able to decrease your investment amount up to that exposure.
Save your changes

Viewing purchased invoices
Select the ‘Invoice Level’ tab on the Dashboard
You will be able to view all invoices you have purchased with their respective statuses
Awaiting Funds - These are the invoices that the system has selected for funding and are in the process of being funded
Funded - These are the invoices that you have funded but are yet to be repaid
Repaid - These are the invoices that have been repaid

Where can I see the fee used for FX Hedging?
The hedging fee is included in the FX forward rates and spot rates displayed on the dashboard

Viewing defaults and late payments
We do not currently display defaults or late payments.

How do I close/cancel a strategy?
Select the delete/cancel icon for the respective strategy you want to edit on the strategy page
Confirm that you want to close the strategy
Your non-utilised funds within the strategy will immediately be released to your wallet and your utilised funds will be paid into your wallet as and when they mature.
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