Invoice Discounting

As an alternative to the secured and unsecured business loans, you have the option to access funds tied up in outstanding invoices. It works on the same principles as a loan, but your accounts to whom products or services were delivered to are used as collateral. If your client is satisfied and willing to sign an undertaking confirming the invoice amount, we arrange payment of your invoice the same day.

REQUIREMENTS

  • The account / debtor must be satisfied with the services rendered or products supplied

  • Your debtor must be a well-established company with a healthy credit standing

  • Payment should be made by the debtor into the bank account of the financial institution upon due date of invoice, in which case the debtor must agree to such an arrangement

  • An agreement must be signed confirming the invoice amount and due date

 

Invoice discounting is more flexible than your loan options as you can decide when and which of the debtors or invoices you would want to discount. There are no fixed terms or monthly fixed costs and you only pay for what you need. The process is quick and painless and we require minimal paperwork with same day results. You have the opportunity to instantly resolve cash flow problems through this innovative product. We will discount up to a 100% of your invoices.

 

The financial institution is very flexible in regards to this product and should be able structure a solution to meet your requirements. Contact us today and let’s discuss your options!

HOW IT WORKS

You provide a service to a client worth R 100 000.00. The client is satisfied with your services rendered and agrees to make payment in 30 days. Adhering to the requirements above the invoice gets discounted by our financial institution. The institution retains R 10 000.00 which will be paid to you as soon as payment is made by your debtor. The portion discounted is therefor R 90 000.00. Our discounting rates are 4.5% (0.15% per day) of the discounted portion which amounts to R 4050.00. A minimal service fee of R300 will also be charged per discounted transaction. These costs get subtracted from the discounted portion which gives you a total payout of R 85 650.00.

*Please keep in mind that our rates get determined by your credit risk assessment. All information provided and financial aspects of your business will be dealt with by our financial institution.*

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