This is whereby TFB will convert a client’s receivables into cash. The Bank will usually advance 60% on selective outstanding invoices, and will create a short term loan for the period these invoices are expected to take before settlement by the client’s buyer. This will therefore provide easy access to working capital for our clients.
- Selective: This facility is offered for selected invoices where buyers have a good payment and business track record.
- Financing against Certified invoices: The invoices which are to be discounted should be certified by the buyer.
- Assignment of proceeds: The Bank might request that the buyer files a commitment that the invoice payment will be settled through the client’s account with Top Finance Bank.
- Repayment of interest and principle: Both the principle and interest will be repaid on maturity date of the short term loan.
- Repayment period: These short terms loans do not exceed a period of 180 days depending on the trading cycle of the client.
- Security: These facilities are currently offered to customers on a secured basis.