Invoice Discounting
Features
A short-term loan used to improve a company’s working capital and cash flow position. This facility allows a business to draw money against its sales invoice before the customer pays.
Requirements
- It is based on an underlying transaction,
- It caters for large corporation with high credit profile,
- Financiers charge discount rates instead of interest rates,
- It is arranged for a fixed period of time in days i.e. 30 days, 60 days or 90 days depending on the nature of the goods and transaction.
Conditions For Qualification
- Original Order
- Terms of the confirmed order
- Company profile
- Company registration documents
- Tax clearance certificate
- Environmental Compliance (EMA)
- Have been in business for at least 6 months
What you need to apply
Application Letter
- Must clearly state the facility amount required e.g. Loan/Overdraft for USD10,000.00.
- Specify tenor/period of the facility.
- Purpose of the facility like working capital requirements, order finance
- Provide source of repayment.
Company Profile
- Company documents i.e. Certificate of Incorporation – CR14, CR6 or Constitution.
- Shareholding Structure and percentage shareholding.
- Related firms – provide family tree
- Lines of business and comment on your market share, major clients
- Suppliers.
- Competitor analysis.
- Directorship & Senior Management Profiles; including ages, academic & professional qualifications, occupation and work experience/history. Provide CVs for key management personnel.
- Latest and valid Tax Clearance certificate.
Latest Financials
- Audited financial statements for the past two years.
- Cashflow Projection covering the tenor of the facility requested.
- Confirmed orders.
- Pro –forma Invoices (for intended expenses).
Banking Details
- Current banking arrangements with other banks, including existing Credit Facilities, (Bank, Branch, Account Number, Branch/Relationship Manager, time with the Bank). Provide statements for the past six months.
