Standard bank is one of South Africa’s largest financial services groups. It operates in 32 countries around the world including 19 in Africa. With a history that dates back to 1862, this bank has set itself apart by offering unique products and services. One of these products is the Debtor finance. Debtor finance has been designed as a form of finance to support the working capital needs of growing businesses.
Some of the benefits of Standard Bank Debtor Finance include the fact 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, this depends on risk and is determined in the same way as overdraft rates and then recovered monthly in arrears and calculated on the daily outstanding balance.You will be able to secure settlement discounts with suppliers and make economical bulk purchases, this will result in your bargaining power being strengthened and your profits increasing. You will not need to grant expensive settlement discounts to your debtors to improve your cash flow. With debtor finance, you can link your business’s growing turnover directly to the working capital finance facility to optimise your debtors and turn them into your most powerful asset which is cash.
Qualification requirements for debtor finance are that you must 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 must have few trade disputes and all financial controls and administration must be fully computerised, allowing you to generate monthly income statements and balance sheets.