Invoice Discounting / Factoring
11 Aug 2017 – Case Study: Invoice Discounting / Factoring
The normal invoice discounting client discounts one, two or maybe three of his debtors’ invoices on a monthly basis. They also don’t have that many debtors to begin with. What happens then when a potential client has 20 – 50 different smaller debtors?
CapX can also provide a factoring solution for such a client whereby we take all the debtors as security and advance a portion of their debtors’ book to them. The amount advanced can vary from month to month depending on the fluctuations in the outstanding debtors. CapX will only look at the debtors that lies between current and 60 days in determining what amount can be advanced.
As a measure of control and additional security CapX will open a bank account in the clients’ name through which all future invoices must flow. This solution allows businesses with a lot of smaller buyers to also gain access to cash flow on a monthly basis.