Another innovative solution to unlocking working capital is something we call invoice discounting. In simple terms,
It’s an easy way to raise cash quickly in order to exploit a new business opportunity while saving time and labour.
Provide your customers with favourable payment terms so you can win new contracts.
We do all the following up and chasing of payments with your debtors, so you can focus on growing your business.
Invoice discounting helps you pay suppliers faster and to negotiate those all-important early settlement discounts. It‘s one of the fastest ways to access liquid capital. You could have cash in as little as 24 hours.
If you have a debtors book that you give your clients payment terms of 30 to 60 days.
If you have more than 5 debtors/customers on your debtors book and no single customer is more than 30% of your total book size.
If your debtors are frequent customers that you supply on an ongoing basis.
If your debtors book has not been ceded or used as collateral for other debt facilities.
You are currently cash only and would like to start giving terms to your clients.
Factoring is when a business sells its invoices to a third party and then the factoring company collects the debts at its own risk.
Invoice discounting is a way to turn invoices into cash against your invoices. However, the business retains the responsibility to ensure the invoice is paid.
It’s always wise to weigh up the costs and benefits of any financial decision. Releasing cash tied up in the debtor’s book earlier gives you the benefit of working capital, which you can use to take advantage of opportunities that could increase your future prosperity. Many clients offset the cost of factoring by taking settlement discounts from their suppliers or paying creditors cash on delivery and negotiating discounts on purchases.
We hear you. The collection of money can be a sensitive issue when trying to develop relationships to grow your business. Rest assured, we handle credit control in a professional way, which will reflect well on your business and give you an improved standing with customers.
Over R20 billion in turnover is factored by South African businesses each year. It can be a sign of a rapidly expanding business rather than one that is in financial trouble. Our professional staff will assist you in explaining our involvement to your customers in a way that puts them at ease and incites confidence.
Traditional banks often use your debtors book to secure an overdraft. This often leaves a big gap between the overdraft facility and the actual debtors book value. Geddes Capital’s Invoice Discounting advances you up to 75% of your entire book, meaning you’ve got a much higher potential facility. We can assist with the transition to help your business realise its true potential. Good thing we’re not your typical, traditional bank.
Invoice discounting is an easy way to advance funds on your invoices immediately after invoicing your customer. You don’t need to wait for the term of the debtor to get paid. It’s a bit like fast-forwarding to the future to receive money that is owed to you. All in all, invoice discounting is a safe and secure way to release funds tied up in a debtor’s book.
Invoice discounting saves you time and effort. A major challenge with any debtor’s book lies in the actual administration and collection process. Geddes Capital’s Invoice Discounting takes over the administration of your sales ledger and trained professionals provide customer credit checks, credit control and efficient debtor administration. So you can focus on growing your business, while we focus on invoice discounting.
We understand that happy customers are everything. Our experienced, professional credit control team quickly develop relationships and trust with your customers ensuring efficient collection of funds owed. For most businesses, credit control, debtors administration and credit checks are a time consuming headache. We do it all on behalf, and we do it well.
Geddes Capital’s Invoice Discounting charges a transparent discount fee on the invoice advanced per month.
Due to the nature of invoice discounting, ad hoc arrangements aren’t suitable for this type of facility.
Absolutely not! Our team keep you in the loop and stay in constant contact with you and the relevant members of your business. Plus, our online system gives you the ability to log in at any time and see what is going on with your account.