Sales Invoice Finance

Are you in need of cash to improve your working capital or meet the increased market demands? Convert your outstanding invoices to instant cash with our sales invoice financing service at Africa Trade Credit. Experience the power of Sales Invoice Finance and take your business to new heights.

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Sales Invoice Finance

By partnering with us, you can sell your outstanding invoices to a willing financier for an immediate cash advance rather than waiting for the customer’s payment. This will give you access to the funds you need to cover the increased demands and improve your cash flow management. The financing company then assumes responsibility for collecting payment from the customers, reducing the administrative burden and risk of non-payment.

No hidden fees

No concealed fees or unexpected charges for transactions and financing services within our platform between the corporate and financier

Instant transactions

This feature provides immediate access to funds by enabling suppliers to convert unpaid or due invoices into cash through our digital invoice marketplace.

100% transparency

Provides a complete disclosure of terms, fees, and transactional details, allowing businesses to make informed decisions and track their financing activity accurately.

No collateral Needed

Even in the absence of collateral, vendors with a good track record with one of our well-performing  partner corporations can obtain an unsecured line of credit facility.

ERP Integration

Technology integration with Corporates’ ERP OR use of our portal for seamless flow of invoice information across all the stakeholders in the platform

Digital KYC Onboarding

Our one-time vendor KYC process allows automatic reapplication for all future invoice, enabling transactions to be completed within 24 hours.

Understanding Africa Trade Credit Sales Invoice Finance

Africa Trade Credit offers innovative solutions to help businesses address challenges and accelerate cash flow. Suppliers may face problems such as poor cash flow, lack of working capital, and issues with credit invoicing settlement.

Our platform offers a transparent, efficient, data-driven solution to these issues, 100% transparent and ERP integrated, ensuring that you get instant transaction and settlement services.

Our flexible financing options are tailored to meet the unique needs of your business, so you can focus on growing your business instead of worrying about cash flow.

Benefits of Sales Invoice Finance

Sales invoice finance provides businesses with a powerful tool to improve their cash flow and access the working capital they need to grow their operations.

LENDERS

  • Access to new and profitable lending opportunities with little or no investment
  • Digital and standardized underwriting process
  • Highly automated and hence scalable model

VENDORS

  • Access to early liquidity against goods and services provided to customers.
  • Increased and stable working capital which will enable them to have extra cash to invest in their business operations and take advantage of new opportunities, expand their business, and invest in new technology or equipment.

 

How It Works

01

Invoice Issuance

  • Business issues an invoice to their customer for goods or services provided
  • The invoice includes payment terms and due date for payment
  • This step initiates the financing process

02

Discounted Invoice Sale

  • Business sells the invoice to an investor at a discount in exchange for immediate cash.
  • The discount reflects the factoring company’s fee for providing the financing.
  • This step provides the business with immediate cash and transfers the payment collection to the investor.

03

Payment Collection and Balance Receipt

  • Investor collects payment from the customer when the invoice is due.
  • The investor deducts their fees and the amount advanced to the business from the payment and the remaining balance is remitted to the business.
  • This step provides the business with the remaining invoice amount, minus any fees, and completes the financing process.

FAQs 

What is Sales Invoice Finance?

Invoice Finance is the practice of using company’s unpaid invoices to raise working capital & fulfil its financial needs. Financial institutions including banks and NBFCs provide discounting services for businesses.

What are the different types of businesses are eligible for loans?

We offer Invoice Financing to all vendors – MSMEs and Non MSMEs – across multiple sectors. Businesses registered as Proprietorship, Partnership, Private Limited, Limited Liability Partnership and Public Limited Companies.

When is the financing disbursement done and to whom?

The financing disbursement is done by the Lender to the designated Bank account of the respective Vendor within 24 hours, as per the process agreed.

What are the terms of repayment?

Repayment is made by the Vendor to the respective Lender anytime before the end of the credit period. The credit period for each invoice ranges between 30 to 60 days, as per terms agreed with the Vendor. The interest is charged only for the actual period for which credit was used.

What is the mode of repayment?

Using auto debit facility via NACH.

Do I need any collateral to avail a Vendor finance facility?

There is usually no additional collateral required, we fund a business on the basis of the health of the business cash flows and track record of prior loan repayments. However, in some case lenders may request for collateral based on their assessment of the risks involved