Invoice Discounting

Botswana Development Corporation Invoice Discounting provides the complete answer to slow-paying customers, shortage of working capital and, if needed, protection against bad debt losses. It enables a business to raise up to 85% on outstanding invoices.

An overdraft secured against invoices would at best only raise in the region of 50%.

BDC Limited  Invoice Discounting offers the following Products :

• Bulk Confidential Invoice Discounting
  The agreement between BDC Invoice Discounting and the client is not notified to the debtors and the invoices do not bear a notice of sale. The client will carry out the credit control and receive payment from debtors. Invoices are notified in bulk and the Corporation maintains a sales ledger control account in respect of each client
  
  
• Bulk Disclosed Invoice Discounting
  With a disclosed invoice discounting facility, the day-to-day operation is very similar to that of a confidential invoice discounting facility, though the invoices will bear a notice of sale and therefore the Debtor will be aware of the Invoice Discounters involvement.
  
  
• Open Item Confidential Invoice Discounting
  As with bulk confidential invoice discounting, the debtor is not aware of the Agreement, but in this case individual invoices are notified and the Corporation maintains a complete sales ledger in respect of each client.
  
  
• Open Item Disclosed Invoice Discounting
  Again, the day to day operation is the same as that for a confidential facility but the debtor is advised of the Corporation’s involvement and invoices bear the notice of sale legend.
  

Financing Parameters

BDC Invoice Discounting provides cash flow finance to all businesses, whether small, medium or large-scale business. BDC’s minimum exposure in any business it finances is P100 000 and this is therefore the minimum facility limit that the Division will provide.

Requirements

• Information and documents required for initial Invoice Discounting assessment:
  • Up to date Aged Debtor Listing in detail
  • Up to date Aged Creditor Listing in summary
  • Most recent management accounts
  • Most recent audited accounts (if applicable)
  • Last 6 months bank statements
  • Last 6 months returns to BURS in respect of PAYE and VAT
  • Company Profile
    
    
• Should the initial assessment prove favourable, the Corporation will undertake a limited due diligence for which the following documentation will be required:
  • Completed proposal form
  • Copy Certificate of Incorporation
  • Copy Form 2
  • Copies of director's photo ID's
  • Copies of utilities bills confirming director's residential addresses
  • Relevant purchase orders and contracts
    

Advantages of Using BDC Invoice Discounting Facility

• Fast Track Delivery
  • Quick, easy access and response
  • Invoice Discounting service generates immediate working capital
  • Additional finance injection removes cash flow pressures fast
    
    
• Flexibility
  • Retain complete control over sales ledger management, credit control and collections
  • No need to constantly renegotiate your facility
  • Freedom to negotiate preferential supplier discounts
    
    
• Transparency
  • Integrity of service
  • Clear, simple documentation
  • No long-term contracts
    
    
• Certainty
  • Availability of finance keeps pace with your business growth
  • Total solution enables you to grow your company with confidence

Contact details for the division: