Non-Government Invoice Discounting

Government Invoice Discounting

Invoice Discounting is a mechanism where businesses use their unpaid invoices to customers as collateral to obtain a loan from a Lender. By leveraging the value of outstanding invoices, Suppliers can improve cash flow and maintain steady operations without waiting for customers to pay. The Lender will advance a significant portion of the invoice value, typically up to 80% while taking cession of the invoice. Once the customer pays the invoice amount to the Lender, the Lender releases the remaining balance to the Supplier after deducting the loan amount and a fee for providing the loan. This method allows businesses to access funds quickly, meet their financial obligations, and invest in growth opportunities

Benefits of using Invoice Discounting:

Cash Flow: Continuous cash flow for the company.
Grow Faster: Creates the ability to grow the business faster.
Expand Without Loss: Provides an opportunity to expand without losing control or equity.
Urgent Opportunities: Can be utilised for urgent opportunities or emergencies.
Purchases & Discounts: Allows for larger purchases and discounts.
Supplier Discounts: Allows for early settlement discounts with suppliers.
Customers & Suppliers: Develop a better standing with customers and suppliers.
Reduce Risks: Reduce the risk of bad debts.

Minimum Requirements:

Minimum Turnover
Minimum turnover of R5 000 000.00 per year.

Clients
The majority of your clients/debtors should be large businesses.

Trading Duration
The company must be trading for longer than 12 months.

Financial Information
The company’s financial information must be readily available.

Company Details

Company Name(Required)

Company Registration Number(Required)

VAT Registration Number(Required)

How long have you been in business? (Years)(Required)

Company Contact Info (Email Address & Contact Number)(Required)

Main Business Industry(Required)

Company Registered Address(Required)

Director (Full Name)(Required)

Director ID Number(Required)

Director Phone Number(Required)

Transaction Details

Are All SARS Obligations Up To Date? (VAT. PAYE and Income Tax)(Required)

Average Monthly Turnover (R)(Required)

Total Outstanding Debtor Value (R)(Required)

Monthly Estimated Amount Required (R)(Required)

Payment Terms from Debtors (Days)?(Required)

List Your Two Largest Debtors (and average sales p/m)(Required)

Are The Debtors Ceded To Any Institution? (If YES, to whom?)(Required)

Does The Company Have Any Insurance Over Debtors? (Yes/No)(Required)

Documents

The company's latest annual financial statements
The newest management accounts (if possible)
The last six months bank statements
Asset Register
Latest debtors age analysis
Latest creditors age analysis
The three largest unpaid invoices
Bank account confirmation letter
CIPC Documents

Documents(Required)

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