Unlock Funds Tied Up For Improved Business Growth
Bills and Invoice Discounting Service
Invoice Discounting or Invoice Bill Discounting is a method to arrange working capital by a business in which the Invoice is sold to the lender at a reduced price than the one quoted on the bill. In this arrangement, the seller receives the funds much before the due date of the bill and can invest that amount for his business.
AL QASR Bills and Invoice Discounting
Al Qasr Invoice discounting is product is designed for suppliers of supermarkets, private hospitals, private schools, insurance companies, hotels and other reputable companies. We provide instant access to cash that is tied up in outstanding invoices.
- Maximum Loan – 80% of value of invoice up to a maximum of Ksh.1,000,000
- Minimum loan – Ksh.10,000,000
- Maximum Term –3 months
- Availability – Facility limit will be available for a stipulated period upon which the limit will be reviewed for renewal and extension where applicable
Applying for an invoice discounting loan is extremely simple. Please call our offices during working hours on +254 708 591 225 or fill out the online application below.
Bill Discounting FAQS
- Business to Business Services
Invoice Finance is confidential as details of customers or buyers are retained with the seller and the customers are not aware of the discounting agreement. In Factoring, the lender or the factor contacts the buyer for payments and payments are made directly to the bank. No confidentiality of customer information is maintained.
Invoice Discounting does not require any property security as collateral. Your debtors or your Accounts receivable ledger for which you seek finance will be your collateral.
Invoice Discounting will work for you if you have:
- Less bad debts
- Customers who make timely payments
- Customers have a minimum 30 day credit period
- You meet the minimum turnover criteria
- A quick release of the funds
- Paperless online process
- No security or pledging of assets required
The amount of loan sanctioned to you depends upon your financial requirement, credit assessment. We can grant up to 90% of the invoice value depending upon conditions.
- KYC documents of the applicant/co-applicant- ID card copy, Address proof
- TAX/VAT registration certificate and TAX returns
- Audited financials of the business
- Copy of company certificate of incorporation/ Business Registration certificate
- PIN certificate of the Company/ Business
- Company CR12
- ID copy and PIN certificate copy of the director(s)/ owner(s)
- Six months certified bank statement for the company/ business
- Duly filed and signed business loan application form
- Duly filed and signed loan agreement
- Particular invoices, delivery notes and also where applicable, credit notes
- Collateral will exist in the form of letters of undertaking/assignment from the procurement entities
- Repayment period ranges from one (1) to three (3) months
Apply for invoice discounting below:
How Invoice Discounting Works?
- When suppliers sell goods to buyers on a large scale, they send out an Invoice or a Bill with the number of goods and the payment due date to the buyer or the wholesale dealer.
- These goods are sold on credit i.e. immediate payment is not made by the buyer.
- The buyer wishes to delay the credit period while the seller will seek immediate payments.
- This causes an amount locked for the supplier which otherwise could be used in the business.
- To retrieve funds, suppliers can sell the Bill to an Invoice Discounting Company.
- The Company gives out an immediate amount to the buyer based on that bill, but which is slightly less than the Bill amount.
- The difference in the value of the bill and the amount paid to the supplier after discounting goes to the company as discounting fees.
- The buyer can now utilize these funds as working capital.
- On the due date of the bill, the supplier or the lender will collect the money from the buyer.
|Value||Up to 90% of Invoice Amount|
|Availability of Funds||Immediate|
|Cost of Finance||Service Charge+ Discount Charge as per agreement|
- Invoice Discounting is confidential process-customer information is not shared.
- It is a suitable business finance option for small businesses that find it difficult to secure a loan.
- Funds are released from the unpaid invoices.
- Instant access to cash held up in invoices
- More flexible than a loan or an overdraft
- Payment collection is under control of the supplier
- Invoice financing bad credit options can be used in case of Discounting without Recourse.
Small Business Invoice Loans
Small businesses that have not been into existence for long, find it difficult to get loans from the bank. They also do not possess sufficient assets and income in the initial years. Due to a lack of business contacts, they are also not able to attract investors to invest in their business. All these challenges put impediments in their path to success. As an alternative solution to obtain cash without acquiring new debt, Invoice Business Loans or Market Invoice Business loans can be used.
Features of Loan against Invoice Kenya
- Bill Discounting is an invoice business loan.
- It helps small businesses to obtain funds almost immediately based on invoices which are already present as collateral.
- The invoice can be sold at up to 90% of the invoice value to the discounting agency and cash can be obtained.
Methods of Invoice Discounting
|With Recourse||Without Recourse|
|Document checks are done by the seller’s bank||No document checks done by the seller’s bank|
|The seller or supplier is liable for debts not paid by the customers||Non-payment of debts is liability of bank/lender|
Factors on which Invoice Discounting depends:
- Your business financial requirement
- Your monthly turnover for your business
- Your business visibility
- Active clients in your business
- Invoices outstanding amount