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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
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.
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