Invoice discounting is intended for creditworthy clients with a portfolio of tens or hundreds of customers with good payment discipline. With this type of factoring our company provides standard pre-financing of receivables and the client himself performs management and collection of receivables. Invoice discounting is conditioned by standard level of client’s accounting and an advanced sales ledger management.
How does it work?
The client (supplier) assigns a receivable issued to his customer to our company and we immediately provide him with pre-financing, usually in the amount of 80% of the receivable's nominal value. We regularly check and compare the amount of total funds in use with sales ledger based on ageing and we adjust provided financing according to agreed conditions.
Receivables financing within Invoice discounting is provided on a recourse basis meaning that if the customer does not settle a receivable during the recourse period (usually within 30 days after due date), the client is obliged to return the provided pre-financing to our company.
Provision of Invoice Discounting is conditioned by conclusion of a Factoring Agreement .