What is Zuron?

Zuron is a Supply Chain Finance and Invoice discounting platform.

Zuron connects buyers, their MSME sellers and financiers to enable MSMEs to receive quick payments for their invoices.

Zurons’ Supply Chain Finance platform helps supplier avail credit against approved invoices from the buyer via end-to-end seamless & integrated process and minimal paperwork.

What is the objective of Zuron?

The objective of Zuron is to facilitate financing of invoices of MSMEs drawn on their buyers by way of factoring.

Who are the participants on Zuron?

Suppliers categorized as MSMEs, Corporate buyers and financiers (banks / NBFC) can participate on Zuron.

How does factoring work?

Factoring is a process which enables suppliers to reduce the payment period for their goods/services.

It does this by introducing a financier between the supplier and the corporate buyer. The financier finances the supplier against the invoice / bill of exchange raised on the corporate buyer for the goods/ services provided by the supplier.

Does the platform support suppliers from the services sector as well?

Yes, the platform is for MSMEs from both manufacturing and services sectors.

What are the KYC guidelines to be followed by Zuron?

KYC documentation shall be in line with the documentation / verification done by the banks as per the existing regulatory requirements.

Can I participate on Zuron?

If you’re a corporate buyer, an MSME supplier, or a bank/NBFC factor, yes you can participate on Zuron.

Can all MSME sellers register themselves?

The facility is limited to MSME sellers who are referred by their corporate buyers on boarded on Zuron. If you’re a financier, you must have a factoring license from the RBI. There is no restriction on buyers, but you need to have MSME suppliers.

What are the modes of registration?

You can register online.

How do I register?

You can become a user now and register yourself by following this link.

How do I transact?

To transact on Zuron, you need to be registered with us as a buyer, seller or financier. You will be given an account login ID with which you will be able to sign in and transact on the platform.

  • If you’re new to the platform, you may contact us, after which we will guide you through the process. To click here.
  • If you’re a registered user and want to go to the platform, click here to sign in
What is the financial instrument used for trading on the platform?

The financial instrument used for trading is your invoice / set of invoices (or bill of exchange). The platform captures all necessary details of the invoice in a digital format, which converts it into a factoring unit.

What is a factoring unit (FU)?

It refers to an invoice / set of invoices (or bill of exchange) that has been uploaded on the platform in a digital format.

Does the factoring unit(s) need to be accepted on the platform?

The factoring unit(s) has to be accepted on the platform by buyers.

What happens once an FU is accepted on the platform?

The FU details are shared with registered financiers for bidding.

Is there a minimum amount for factoring unit (FU) creation?

Yes the minimum amount of creation of factoring unit is INR 50,000 (Fifty thousand only).

Will there be any audit to ensure that factoring units (FUs) uploaded on Zuron are genuine?

Zuron shall conduct random audits to confirm the authenticity and genuineness of transactions involving the sale of goods and services.

Will there be any guaranteed settlement by Zuron?

Zuron does not offer any guaranteed settlement and does not take any settlement risk. It is a platform which facilitates factoring / reverse factoring transactions.

What are the costs associated with factoring / reverse factoring?

You may incur the following costs associated with factoring / reverse factoring on Zuron:

  • The interest cost levied by the financier, to be borne by buyer or seller, as the case may be
  • The transaction charges levied by Zuron, borne by the party which bears the interest as well as the financier
How does the settlement process work?
  • Zuron shall debit the financier’s account for net value (post deduction of the financier’s charges) and credit MSME seller’s account on on ‘T+1’/ ‘T+2’ day (‘T’ is the Bid Acceptance day) through NPCI

  • Zuron shall send the payment information to the buyer on successful credit in seller’s account

  • Zuron shall debit the buyer’s account for the invoice value and credit financier’s account on the due date

For the purpose of automatic settlement, Zuron shall obtain NACH mandates from both buyers and financiers.