Selective Invoice Discounting
Improve cash flow
This is invoice level financing, where either selected invoices or all invoices for selected preapproved debtors are sold to the bank to release funds and improve cash flow.
How it works
Bridge the cash flow gap
- It is a short-term funding solution that gives start up or growing business's access to immediate cash rather than waiting 30 or more days for debtors to pay.
- One or multiple invoices for selected quality debtors are 'sold' to release funds and improve the business's cash flow.
- The facility requires disclosure to the debtor.
- When the debtor pays the invoice, the facility balance is settled, but the facility remains open for continued future use.
Quick turnaround
No waiting around. Cash is disbursed within a maximum of 48 hours after completion of take-on process.
What's hot
- Short-term finance: Short term solution to unlock cash from outstanding invoices
- Flexibility: Flexibility to use the facility as and when required
- Convenience: No notice period or monthly admin fee
- Majority funding: Funding of up to 80% of the invoice value
- Simplicity: Simple fee structure - based on percentage of invoice value
- Invoice-to-invoice basis: Once invoice is settled, there are no further obligations to the bank, but facility remains in place/open for future use
Benefits to your business
Discounts + lower stock prices. Use early payment discounts and secure lower stock prices without impacting relationship with debtors.
- Early payment discounts: Enables the business to utilise early payment discounts with creditors
- Lower stock prices: Enables the business to secure lower stock prices through bulk buying
- Intact relationship: Doesn't affect control of, or relationship with the debtor(s)
Qualifying criteria
- Solvent Balance Sheet
- Good quality debtor(s)
- Goods must have been delivered or service rendered
- Tax clearance certificate must be valid
Documents needed
- Latest financial information (e.g. management accounts)
- Latest Debtors Age Analysis
- Valid Tax Clearance Certificate
- Completed Selective Invoice Discounting Application Form
Download form
Getting it made easy
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Source: FNB
