Invoice Discounting
Short-term borrowing often used to improve a company's working capital and cashflow position. Our Invoice discounting facility allows a business to obtain funds against its sales invoices issued to their Buyers. The buyers will be subject to an internal appraisal and financing will be up to 80%.
Loan Amount:
Up to 80% of the Invoice amount.
Loan term:
30 – 120 days
Requirements:
- The applicant must present an authentic invoice as acknowledged from a reputable organization;
- KYC compliance.
- Deed of assignment to ensure that receivables/ contract proceeds are transacted through the customer’s account operated by the bank.
- Applicant must operate an account with JBB.
- The Invoice should not be more than 30 days from date of invoicing.
Fees:
- Processing fees – 3%.
Interest Rate:
1.17% per month.
Security:
- Signed letter of offer.
- Confirmed and acknowledged Invoices.
- Deed of assignment of receivables.
- Duly accepted/ acknowledged irrevocable letter of instruction.
- Board Resolution to borrow.
- Directors’ guarantees.
- Credit Life Insurance over the borrower
