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Invoice Discounting

Creating constant cash flow
What is Invoice Discounting
Invoice Discounting, also commonly known as debtors financing or receivables financing is the process where businesses utilise their approved invoices submitted to their clients to receive their money earlier and unlock cashflow for various purposes.
How Does it Work
How Does It Works
1
Complete Service
The company completes its services and/or delivers its products to its clients.
2
Raise Invoice
The company raises an invoice to its client.
3
Accepts Invoice
The client signs off on and accepts the invoice.
4
Offer to DiscountDesk
The approved invoice is offered to the DiscountDesk.
5
Elect to Purchase
DiscountDesk can elect to purchase the invoice for up to 80% of the value.
6
Paid Into Account
The amount purchased is paid into the company’s account.
7
Await Payment
DiscountDesk waits with the company for the payment from its client.
8
Receives Payment
The client settles and pays for the invoice.
9
Capital and Fees
DiscountDesk receives its capital and fees, and the remainder is paid to the Company.
Benefits
  • Cash Flow
    Continuous cash flow for the company.
  • Purchases & Discounts
    Allows for larger purchases and discounts.
  • Grow Faster
    Creates the ability to grow the business faster.
  • Supplier Discounts
    Allows for early settlement discounts with suppliers.
  • Expand Without Loss
    Provides an opportunity to expand without loss of control or equity.
  • Customers & Suppliers
    Develop in better standing with customers and suppliers.
  • Urgent Opportunities
    Can be utilised for urgent opportunities or emergencies.
  • Reduce Risks
    Reduce the risk of bad debts.
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How to Utilise Invoice Discounting
  • Scale & Expand
    To scale or expand the business due to having continuous cash flow.
  • Operational Expenses
    To pay for operational expenses whilst awaiting payment.
  • Negotiate Discounts
    To negotiate discounts with suppliers for larger payments.
  • Earlier Payments
    To pay suppliers earlier, to improve relationship and status.
  • No Delays
    To complete certain projects faster due to no delays in payments.
  • Manage Seasonal Fluctuations
    To relieve cash flow pressure in seasonal difficulties.
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 financial information of the company must be readily available.
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