Invoice Discounting is a business financing facility where businesses are able to sell their outstanding invoices to a Factor so as to get a cash advance of up to 90% of the invoice value.
Invoice Financing provides fast working capital of up to 90% of your outstanding invoice value with a repayment plan of up to 90 days.
Benefits of invoice discounting
- Does not register as debt: Unlike the conventional loan or overdraft facility, Invoice Discounting is not booked as a “debt” but rather the sale of a receivable thus does not interfere with other credit arrangements.
- Aligned credit growth: The amount of financing you can access increases as your sales grow, thus providing you with comfort that you have access to continuous, growing amounts of working capital as your business grows.
- Revolving credit line: Provides flexibility in adapting to your changing business cycles.
No early settlement fees
- Application Requirements.
- Completed Application Form.
- Copy of Directors National Identity Card Copy of Director’s KRA PIN and company KRA PIN.
- Certificate of Incorporation/Registration.
- CR12 (issued within the last 6 months) or copy of annual returns of the previous year.
- Business Permit and other relevant practice licenses).
- Others: Partnership Deed (LLP, Limited Partnership).
- 6 months Bank statements for all company bank accounts.
- 3 sample invoices sent to each targeted factoring customer in the past 12 months).