Invoice Discounting Facility is a short-term financing arrangement extended to the borrower for financing of the borrower’s stock and other working capital requirements based on the borrower’s accounts receivables. The borrower can be either a product manufacturer or a service provider

Requirements

• Customer submits Copy of Invoice issued and buyer must be acceptable to the Bank
• The Bank gives specimen standard finance application letter
• FDH Bank verifies the credit worthiness of the buying customer in terms of the Bank’s Credit Risk Grading Criteria.
• The Bank will secure the accounts receivables by means of deeds of cession targeting approved counterparties with acceptable risk profiles
• The Bank writes a Deeds of Cession letter to the buyer for them to acknowledge that payment of said invoice will be made direct to the Bank.

Benefits

• Provides access to financing even when the balance sheet of the Borrower is weak
• Increases the borrower’s buying capacity by ensuring that the borrower can take advantage of cash purchase discounts and bulk purchase
• Saves on management time and focuses management time on the growth of the business instead of company financing issues
• Allows the borrower to generate more sales, leading to business growth and sustainability.
• Provides short-term financing meant to bring efficiency in the payments systems with risk cover based on more ready and assessed payment undertakings