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Order discounting
The purpose of order discounting is to provide a working capital facility to emerging manufacturing concerns by means of an up front advance of funds prior to commencement of a contract.
Invoice discounting
The purpose of invoice discounting it to provide a working capital facility for growing manufacturing concerns by means of discounting invoices to their customers.
Term of loan
Order discounting
Depending on the nature of the contract, the term should not exceed six months. Should a longer term be required, a term loan can be applied for.
Invoice discounting
The term is limited to 90 days.
Repayment period
Order discounting
Full amount plus interest to be repaid within two months from completion of the contract.
Invoice discounting
Repayments can be deducted from receipts and debtors failing which payment is to be received within 90 days from date of advance.
Security
Order discounting
In addition to a cession over the contract payments, tangible security should be provided for by the applicant.
Invoice discounting
Minimum of cession receipts from debtors in respect of invoices being financed.
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