Option 3: Factoring
Here our anchor-client acts in the capacity of Seller. We agree on an receivables finance programme for a number of pre-approved off-takers.
Sales invoices are uploaded onto our SCF platform and form the “Borrowing Base” – against which we finance 80% by means of advances. FACTS does not (!) get involved in the collection process – the Seller remains fully responsible for off-taker relationships.
- Seller delivers to multiple off-takers
- .. and issues sales invoice
- .. terms are 30-60-90 days
- Seller uploads the invoices onto the FACTS Supply Chain Finance platform
- .. and submits an Advance Request;
- Within the agreed credit limit, FACTS pays the Seller advances against eligible invoices;
- On invoice due date, the off-taker pays the nominal value of the invoice directly to a FACTS collection account
Option 4: Invoice Discounting
Stand-alone invoice discounting is a product that is appropriate for more complex project-management situations, where a series of milestones or deliverables need to be met over time.
Usually, an agreed Factoring programme will meet the working capital requirements of our clients in a more flexible and efficient manner.
- Seller uploads the invoice onto the FACTS Supply Chain Finance platform and requests FACTS for an invoice discount transaction;
- Within the agreed credit limit, FACTS will discount the invoice on behalf of the Seller;
- On invoice due date, the project owner pays the nominal value of the invoice directly to a FACTS collection account.