Invoice Discounting

Overview

Where you supply products and/or services to institutions who pay on terms (i.e. after 30, 60 or 90 days), working capital can become a challenge. Invoice discounting enables you to get a percentage (usually 75%-90%) of invoice value advanced to you, so that you are able to continue production /  servicing without being hamstrung by having to wait until the payment comes through. General guidelines for obtaining invoice discounting are:

1. Your customer should be a reputable large corporation or organisation based in Zimbabwe.
2. They must be willing to confirm amount they owe, and to cede the invoice to the financier.

To obtain invoice discounting, you will need to present the following documents for preliminary processing:

1. Confirmed order, and invoice that you made out, together with delivery note (proof of receipt of delivery) from your customer.
2. Confirmation of satisfactory delivery to client, as well as terms given.

After processing and identification of a suitable financier for your order, financiers will also require the following:

1. Letter of undertaking from the corporate/organisation to remit funds direct to the financier, or your bank account with them.
2. You may be requested to open a bank account with the financial institution providing the funding.
3. Some financiers may require collateral security in the form of immovable property (title deeds) or movable property. A guarantee may also be obtained in place of collateral security.

Providers of Invoice Discounting

The SMEAZ SACCOS offers invoice discounting for its members.

MicroFinance Institutions offering order finance are listed on our Business Directory. Click here to see the available products.

The following Affiliate Members of the Association also offer invoice discounting facilities:

• SMEDCO
• Qupa Microfinance

How to access

To access invoice discounting facilities, you can contact the relevant institutions above directly, if you have your documents and requirements in order. Should you require assistance from us, however, you can apply online by clicking on the button below:

Apply for Invoice Discounting

Note that in order for us to assist you, you will need to be a paid-up member of the Association, and there are fees payable for the service.