Invoice Financing

Invoice financing enables an importer or exporter who trades on an open account basis to raise short-term pre or post shipment finance using commercial invoices (not proforma invoices) and transport documents. This form of finance can be domestic or cross border.

By presenting these documents the Bank can provide short-term finance to the importer or exporter. The tenor of each advance is normally 90 days but the maximum tenor should not normally exceed 180 days.

The maximum amount advanced for imports is 100% and for exports, the maximum should not normally exceed 85% of the invoice value.

Benefits

Better cash flow

The customer will enjoy cheaper financing compared to an overdraft facility

As a buyer the customer can reimburse the supplier on a sight basis and should be in a better bargaining Position

Bank Requirements

A credit limit sanctioned for invoice financing

Request made on the Bank's standard form and duly signed by authorized signatories as per the Bank's records

Related company financing is prohibited.

The financing period must match to the customer‟s cash conversion cycle

For imports, advance must be paid directly to supplier via supplier's bank and for export proceeds of the sale must be paid directly to Standard Charted Bank.

Invoices must not be dated more than 30 days prior to the date of finance