Sometimes your business manages to complete an order for its client way ahead of schedule. At other times, your client may have a credit policy of say 60 days. This presents liquidity challenges for especially for small and medium sized enterprises.
At Credit Bank, we offer Invoice Discounting where clients are allowed to draw funds on the basis of work done and invoiced but payment for the work done is yet to materialize.
What it Entails
- The applicant must have had six months bank relationship-not necessarily existing client (any bank relationship)
- The applicant must have had good supply history-successful performance/Payment of previous invoices from reputable institutions.
- Tripartite agreements with reputable companies to be allowed (letter of undertaking).
- Discount maximum of 80% of the invoice amount.
- Maximum duration 3 months.
- Approval charge/fee of 2%.