Invoice discounting in the media and entertainment industry involves providing funds to production companies based on their anticipated future cash flows/invoices. In exchange, investors earn stable returns when the invoices are paid by a third party, typically a buyer of film or music rights (for example, Netflix, Hotstar, Prime).

The minimum investment amount required with BetterInvest is Rs. 50,000.

See how we select content producers to fund:

1. Onboarding: Strict criteria for production houses.

2. Evaluation: Detailed analysis of financial viability.

3. Discounting Eligibility: Discount 60-70% of contract value.

4. Verification: Proof of advance payment verified.

5. Security: Ensuring robust measures like Direct Collection Letters and Indemnity Agreements.

‍

To minimize the risk of default, BetterInvest takes several precautions:

• Direct Agreements with Production Houses: These agreements ensure that revenue from the OTT platform or other rights buyers is transferred directly to the investors through an escrow account.
• Legal Security: BetterInvest collects Post-Dated Cheques and Indemnity Bonds from production houses to ensure compliance with financial obligations.
• Careful Curation: Each deal is rigorously vetted to ensure it meets BetterInvest's high standards, reducing the risk of failure.

Although BetterInvest has not faced this issue, in the unlikely event that an opportunity is not fully subscribed, the amount will be refunded to the investors without any charges within 10 days.

Investments with BetterInvest are safeguarded by multiple security measures:

• Direct Collection Letters: These letters ensure that OTT platforms and other buyers pay the due amount directly into the escrow account, minimizing the risk of default.
• Post-Dated Cheques and Indemnity Bonds: BetterInvest secures these from the production houses to ensure additional security.
• Escrow Accounts: Funds are transferred through a secure escrow account, ensuring that the right of first collection is with the investors.

BetterInvest returns are non-market linked meaning the movie's success does not have an impact on the returns as it’s pre-determined. 

But in cases of extended maturity date and no release, BetterInvest takes necessary steps to recover the amount from the production house using Post-Dated Cheques, Personal Guarantee, and Indemnity Bonds. These security measures help to ensure that investors are protected against project-specific risks.

Investments with BetterInvest are primarily protected by Direct Collection Letters and the Bill Discounting Agreement, ensuring that investors have contractual rights to claim payment from the production house. Even if BetterInvest defaults, investors have multiple layers of protection.

We mitigate the risk of default through a ‘lien on future cash flow’ from the production houses. In case of a default by an OTT platform, BetterInvest will take appropriate measures to recover the outstanding amount from the production house, as outlined in the Bill Discounting Agreement. Investors will receive accrued interest for any delays during the recovery process.

BetterInvest collects the following security documents from production houses:

• Post-Dated Cheques (PDCs)
• Indemnity Bonds
• Direct Collection Letters
• Personal guarantee

BetterInvest uses an escrow account to transfer funds. Cashfree facilitates these transfers from investors, and the funds are then transferred to the production house through the escrow account. The same escrow account receives payments from OTT platforms or other rights buyers, ensuring a secure flow of funds.

Yes, BetterInvest has an escrow account trustee who acts as an intermediary between BetterInvest, the production house, and the OTT platform. This trustee ensures a smooth and secure flow of funds, reducing the risk of default.

Yes, BetterInvest collects Post-Dated Cheques, Personal Guarantee, and Indemnity Bonds from production houses as additional security for every opportunity listed on the platform. This practice helps protect investors' interests in the event of any issues.

Investors have multi-layer of security, even if BetterInvest defaults:

• Direct Collection Letters: This arrangement ensures that the revenue from the OTT platform or other rights buyers goes directly into the escrow account, minimizing the risk of loss.
• Bill Discounting Agreement: This agreement between the production house, BetterInvest, and investors, gives investors the right to claim from the production house in case of any default.‍
• Zero Default: BetterInvest has maintained a 0% default rate so far, and with thorough documentation collected in advance, the likelihood of a default is extremely low.

We will notify all the investors in advance about any extension and provide the updated repayment date. For further clarity, you can also refer to point 4.8 of the Invoice Discounting Agreement.

Currently, no penalty is applied if a deal is extended beyond the maturity date. However, interest will be accumulated for the extended period. 

In case of a default or termination of the agreement, as outlined in points 6.2 and 6.3 of the Invoice Discounting Agreement, we will take the necessary actions as per the terms mentioned in the agreement.

TDS (Tax Deducted at Source) is deducted at 10% of the returns earned. BetterInvest provides Form 16A certificates for TDS compliance.

Yes, BetterInvest provides Form 16A certificates for TDS. These certificates serve as proof of tax deductions for investors. You can download it from your BetterInvest portfolio,

1. Go to https://www.betterinvest.club/

2. Click "Get Started" and select "I'm an Investor."

3. Log in with your registered mobile number and enter the OTP sent to you.

4. In the top right corner, click "My Portfolio" and select "Get TDS report."

5. Select the financial year you want to download.

Returns are processed pre-tax. The stated 16% returns are subject to a 10% TDS deduction, resulting in an effective post-tax return of approximately 14.4%. For more clarity, reach out to our support team.

If you haven't received your TDS certificate, send an email to BetterInvest's support team, and they will resolve the issue promptly.

To download your TDS certificate, visit the government portal at https://eportal.incometax.gov.in/iec/foservices/#/dashboard. Follow these steps to access your tax records:

1. Click on "e-file" > "Income Tax Returns."
2. Select "View Form 26AS."
3. Choose the appropriate assessment year and download the document.
4. You can also download it from your BetterInvest portfolio.
5. If you face any issues, contact BetterInvest's support team for assistance.

To download your income certificate, log in to the BetterInvest website and go to "My Portfolio." Click "Get Income Certificates," then select the financial year "Download Income Certificate" for the appropriate year. If you encounter any issues, contact BetterInvest's support team for assistance.