Receivables Finance  

An innovative working capital solution for your business.
How does Receivables finance work?

The bank purchases the businesses’ right to receive payment from its debtors (invoices) and in return advances up to 80% of the value of the invoices purchased to the business for periods of up to 120 days.

Benefits to your business:
Receivables Finance has a sound track record of assisting businesses of all sizes in accessing much needed working capital to fund their business growth. Some of the benefits your business can expect to enjoy by making use of Receivable Finance include:
  • An improvement in your cash flow position, as we will advance up to 80% of the value of your debtor’s book, with the balance of the invoice value being refunded to your business on receipt of funds from the debtor,
  • Surplus cash to negotiate more attractive settlement and bulk purchase discounts with your suppliers as well as reduce associated purchasing costs,
  • Surplus cash to compete more effectively in the market by offering more attractive trading terms to your clients, instead of having to give up profits in the form of trade discounts,
  • A working capital facility limit that matches the turnover growth of your business, allowing you to take on larger client contracts previously not possible due to cash flow restrictions,
  • Assistance by our team of specialists in the debtor administration and credit control area of your business.
Our solutions

The following Receivables finance solutions are all specifically designed to help address your working capital needs and provide you with access to the levels of cash needed to grow your business. These solutions can be combined with other forms of working capital to ensure your total working capital needs are met.

Invoice Discounting
  • A confidential facility, where the sale of the businesses debt to the bank is not made known to the debtors,
  • Debtors located in South Africa and the South African Customs Union are funded,
  • The business remains in control of all debtor administration and debtor collections,
  • All debtor payments are made into a designated clearing account managed by Receivables Finance to which viewing rights are provided to the client,
  • To qualify for this solution, businesses should have good controls, processes and financial systems.
Export Invoice Discounting
  • A confidential facility, where the sale of the businesses foreign debt to the bank is not made known to the foreign debtors,
  • Debtors located outside of South Africa are funded up to credit insured or bank approved limits,
  • The business remains in control of all debtor administration and debtor collections,
  • All debtor payments are made into a designated Customer Foreign Currency account managed by Receivables finance,
  • To qualify for this solution, businesses should have good controls, processes and financial systems.
Factoring
  • A disclosed facility, where the sale of the businesses debt to the bank is made known to debtors,
  • Debtors located in South Africa and the South African Customs Union are funded. Receivables finance performs all debtor administration and credit control functions, including the sending out of monthly statements, which specify the debt has been sold to the bank along with specific payment instructions,
  • All debtor payments are made into a designated clearing account managed by Receivables finance to which viewing rights are provided to the client,
  • This solution is better suited to businesses with limited staff resources, less sophisticated controls, processes and financial systems.
Export Factoring
  • A disclosed facility, where the sale of the businesses foreign debt to the bank is disclosed to the foreign debtors,
  • Debtors located outside of South Africa are funded to credit insured limits
  • Our Receivables finance performs all debtor administration and credit control functions, including the sending out of monthly statements, which specify the debt has been sold to the bank along with specific payment instructions,
  • All debtor payments are made into a designated Customer Foreign Currency account managed by Receivables finance,
  • This solution is better suited to businesses with limited staff resources, less sophisticated controls, processes and financial systems.
Selective Invoice Purchasing
  • The sale of the invoice to Receivables finance is disclosed to the debtor and confirmation obtained from the debtor that payment will be made into a designated clearing account managed by Receivables finance,
  • Debtors located in South Africa will be funded,
  • The solution is provided for the discounting of select non-recurring invoices where the debtors are of a “blue chip” nature.
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