Institutional buyers, especially government departments and parastatals, only pay on full delivery.
This presents a challenge to many businesses who have recently won tenders. How do you finance the project if your cash reserves are low.
That’s why BECI now offers Invoice Discounting to our policy holders: it’s a guaranteed tool to keep cash flowing into your business, regardless of how long it takes your clients to fulfill their end of the bargain.
Invoice Discounting from BECI is a fast-acting, flexible financing option that gives you the power to grow based on the value of your current sales.
So if you’re good at getting deals signed, but lack cash on hand, this is a perfect option for you.
Invoice Discounting eliminates your need for expensive overdrafts or bridging finance loans, freeing you to focus on the big picture and fulfill your duties as a supplier or service provider.
Now, you can use the money you haven’t even collected yet as collateral in exchange for a cash injection into your business. A valid purchase order entitles you to receive up to 70-80 percent of the invoice amount instantly and directly from BECI, which you can start using straight away.
As you make more sales, so the cycle repeats – which allows you to continuously grow your business regardless of how long it takes to get paid by your client.
In other words, you always have access to the working capital you need to keep the business going. And you can grow in line with the market’s demand for your goods and services.
Four Huge Advantages of Invoice discounting: a summary
Not convinced? Invoice Discounting can help you reach your goals in record time because:
It’s a quick way to inject vital cash into the business – which empowers you to keep the promises you’ve made to your clients.
If you’re always pleading for advanced payments from your clients, it makes your business look desperate and unstable. This is a good way to focus on sales expansion, rather than getting distracted with cash flow worries. It’s now possible to grow your credit sales and your working capital at the same time. In the past, the opposite applied: as you sold more on credit, so you depleted your cash reserves. With invoice discounting, this is no longer the case.