Undisclosed Invoice Discounting – Using property as security
09 Sep 2016 – Case Study: Undisclosed Invoice Discounting – Using property as security
About a year and a half ago, a company contacted us looking for assistance with their cash flow. They import coconut oil from Mozambique and sell it to various big companies and retail stores in South Africa. Unfortunately some of their bigger debtors had an issue with paying into a third party bank account, but CapX had a solution to this problem.
The company owns an un-bonded property which they were willing to offer as security for an undisclosed invoice discounting facility. CapX registered a bond on this property and were able to provide the client with funds without contacting the debtors for invoice confirmation or for payment.
If a client is able to offer a property as security for a facility, CapX can lend funds to the client if the client can provide an invoice and proof of delivery. With undisclosed invoice discounting, CapX does not need to contact your debtors and they can also continue to make payments to your account, keeping the fact that you are using a finance house, confidential.