We recommend setting up a strategy for each limit which has been approved - this acts as a control on the total funds which can be deployed to a single party. For example, if you have a prepayment facility and a true sale facility for Payer 1, and a single limit governing both then you can create a strategy “Payer 1” and then place the two facilities under that single limit to ensure your exposure never exceeds the total limit for that Payer.

1. The strategy allows you to set a total limit, currency, maximum tenor and country (e.g. if you want to limit purchases to a particular jurisdiction). 
   
2. Your strategies can be found on the “Strategies” section on the Product Portal (next to “Dashboard”). Here you can create and edit strategies as well as monitor the performance of each strategy - including current exposure, utilisation, realised and expected return
   
3. Currency  - The currency of the invoices to fund.
   

Understanding Strategy Terminology

1. Strategy Name - The name you give the strategy when you create it, i.e. typically the obligor's name.
   
2. Currency - The currency of the invoices to fund.
   
3. Country - The country of the invoice payer.
   
4. Invoice Payer - Name of the invoice payer who the strategy relates to.
   
5. Return P/a - The investment's expected rate of return over a year.
   
6. Term - The tenor you set when creating the investment strategy, i.e. the system will only purchase invoices that fall within this tenor.
   
7. Exposure - The amount currently invested in invoices that haven't been repaid.
   
8. Limit - The maximum exposure of the strategy.
   
9. Utilisation - The percentage of your limit that is utilised.
   
10. Accrued Return - The return that has been earned.
    
11. Realised Return - The return that has been received.
    

Prerequisites to creating an investment strategy

To create an investment strategy you need to:

1. Deposit funds into the wallet you wish to use for the given strategy.
2. Give the funder the permission to invest in the given payer (obligor).
3. Ensure that the platform administrator has set up at least one active seller relationship for the payer.

Creating a new strategy

We will now go through the steps of setting up and managing your investment strategy:

1. Open the  Strategies  page
   
2. Click  Create New Strategy
   
3. Give your strategy a name and set your investment criteria
   
   • Strategy Name  – Give the strategy a name that you can use to identify it after creation (e.g. name of the obligor).
   • Expected Annualized return  – Set your desired annualized return (this range is automatically calculated based on the available deals, i.e., in the above example, the range shows that available deals have an annualized return of between 5%-7%).
   • Term  – Set the minimum and max tenor.
   • Currency  – Set the target invoice currency.
4. Select the payers you want to include in the strategy
   Based on the parameters you set in the previous step, the system will automatically filter the payers available for investment, as shown below. To proceed, select the payers you want to add to your investment list and click the  Add Selected  button.
   
   
5. Set your commitment period, wallet, and investment limit.
   
   
   
   Commitment Period  – Enter the commitment period according to the agreed value in the Term Sheet signed with platform admin.
   Wallet  – Select the wallet that you will be using for this investment. You will not be able to set an investment amount that exceeds the wallet limit (balance).
   Amount  – Set the investment limit (based on the currency of the selected wallet). The limit you set cannot exceed the wallet limit (balance).
   Save Strategy  - note that if you have not completed the steps above as described, the “Save Strategy” button will remain disabled.
6. View created strategy
   
   The list of strategies you have created, will appear on the strategies page shown below.
   
   
   
   

Editing strategies

1. Click on the edit icon
   
2. Make the needed changes
   Please note that the strategy amount cannot be less than the current exposure. Please close the given strategy and create a new strategy with the desired limit to reduce your exposure.
   

Closing strategies

1. Click on the close strategy icon
   
2. Submit confirmation
   

• Investments for that strategy will stop.
• Non-utilised funds will immediately be returned to the respective wallet the strategy was linked to.
• Utilised funds will remain invested in the strategy until they are repaid by the respective payers/obligor.