“18% guaranteed returns” at Global Fintech Fest

A friend asked me: “What was the most absurd thing you noticed at #GFF2026?”

For me, one immediately stood out.
An #InvoiceDiscounting #startup was promising “up to 18% guaranteed returns.”

That got my attention.
18% guaranteed #returns - there has to be a catch!

I have been a #buyer early in my career, so I understand how the economics of Invoice discounting work.
At such an attractive discount rate, I would seriously consider discounting the invoice myself rather than paying someone else to do it!

As I dug a little deeper.
The basic model was familiar:
Supplier → Invoice → Tier-1 buyer → Discounting → Investor

But where did the “guarantee” come from?
Apparently, the startup had acquired an #NBFC.
The NBFC provides the payment assurance. If the buyer defaults, the NBFC is supposed to pay the subscriber and then pursue recovery from the parties involved.

Sounds reassuring, at least that's how the lady at the counter explained!

Until one looks at the #Risks.
Risk #1: Delay
The underlying securities are short-term, with tenures of up to around 3 months.
If repayment is delayed by 30 days, this can materially change the annualised return you actually earn.

Risk #2: The Guarantor
The guarantee is only as strong as the entity providing it.
If the NBFC itself runs into financial trouble, the “guarantee” becomes a very different proposition.
A guarantee doesn't make risk disappear.
It transfers the risk.

The funny part?
The people at the stall were able to convince multiple visitors to create accounts.
I even saw one person moving through the subscription flow.
I tried pointing out the risks.
But there's a familiar problem in investing:
When the return looks attractive enough, we stop looking for the risk.

#MoneyMinusNoise
18% grabs attention.
“Guaranteed” removes hesitation.
The risks are buried somewhere in between.

Before you put your hard-earned money on any lucrative investment option, try to understand the underlying Risks and ask the basic Question: why is someone willing to pay returns much higher than offered in the market?

So, what was the most absurd thing I saw at GFF 2026?

I work with individuals seeking clarity on #PersonalFinance, #Investments, #Taxation, and #CreditCard Optimization.

If you want to understand the risks behind the returns before making a financial decision, feel free to send me a message.