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 the invoice value advanced to you, so that you can continue production / servicing without being hamstrung by having to wait until the payment comes through. General guidelines for obtaining invoice discounting are:

• Your customer should be a reputable large corporation or organisation based in Zimbabwe.

• They must be willing to confirm amount they owe, and to cede the invoice to the SMEAZ SACCOS.

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

  • Confirmed order, and invoice that you made out, together with delivery note (proof of receipt of delivery) from your customer.

  • Confirmation of satisfactory delivery to client, as well as terms given.

After processing and confirmation of the order and capacity to finance it, we will also require the following:

• Letter of undertaking from the corporate/organisation to remit funds direct to the SMEAZ SACCOS.

• We may require collateral security in the form of movable or immovable property (title deeds). A guarantee may also be obtained in place of collateral security.

Eligibility

To be eligible for this loan, you will need to meet the following requirements:

• Be a paid-up member of the SME Association of Zimbabwe on at least the Standard membership package. You must be in good standing on your membership.

• Be a member of the SMEAZ SACCOS and be on good standing in the SACCOS.

• Have savings that are at least one sixth of the required loan amount.