Short-term facility where the Bank offers to pay a discounted amount against the invoice face value before the maturity date. The facility is offered to the customers of the Bank who trade on credit terms.
Attract a fee and commission as per tariff.
Flexible security requirement depending on drawee and the tenor
Maximum amount of the invoice finance is 80%.
The facility is self-liquidating
Maximum tenor is 120 days
Attract interest payable either monthly or upon settlement of the respective invoice
Immediate access to proceeds of sales
Cheaper additional working capital with simplified security requirements
Loan application form
Good reputation of the invoiced party
Letter of undertaking to pay the bank directly from the drawee
Proper authentication of the invoice by the Bank
Letter of assignment of account receivables with recourse