Standard Bank debtor finance is a form of finance designed to support the working capital needs of growing businesses. Standard Bank purchases approved trade debtor invoices with an agreed portion which is usually 75% being paid at the time of purchase and a similar portion paid on all future approved trade debtor invoices.
Debtor finance is suitable for you if you have a minimum turnover of R200,000 a month, you receive repeat orders from your customers, you sell on credit terms not exceeding 120 days, you trade with suppliers of sound financial standing, you have few trade disputes and all your financial controls and administration are fully computerised, allowing you to generate monthly income statements and balance sheets.
The benefits of debtor finance are that your business growth will not be restricted by insufficient working capital as this flexible working capital facility will support you as your sales grow. Interest is charged only on the money you borrow but of course this depends on risk and is determined in the same way as overdraft rates. It is recovered monthly in arrears and calculated on the daily outstanding balance.
Other benefits are that you will be able to secure settlement discounts with suppliers and make economical bulk purchases, your bargaining power will be strengthened and your profits will increase. You will not need to grant expensive settlement discounts to your debtors to improve cash flow. With Debtor Finance, you can link your business’s growing turnover directly to our working capital finance facility to optimise your debtors and turn them into your most powerful asset – cash.
Standard Bank can be contacted on 0860123000.