FAQ's

Invoice discounting is a simple and flexible instrument for the financing of accounts receivable, which does not require tangible collaterals. The financing of invoices is based on the discounting of client invoices accepted by the buyers.

1. Collateralization that Work
   • In order to ensure the timely transfer of cash to the client, discounting does not require any other collateral because the invoice, accepted by the buyer, works as a collateral.
2. Benefits for the Seller
   • Possibility to receive financing without providing tangible assets as collateral.
   • Increased liquidity as the receivables are replaced by cash in seller’s account.
   • Increase in sales (limited financial resources and long collection period of receivables hamper the growth of turnover).
   • Enables longer-term payments which benefits both the buyer and the seller.
3. Benefits for the Buyer
   • Allows the supplier to postpone the payment date.
   • Attracts smaller-manufacturers.
   • Increases financial liquidity of the company and unties working capital.

The Process takes 4 Simple Steps  :

• The seller sells the goods and/or provides the services to the Buyer.
• The invoice issued to the buyer is submitted to the discounting company, after it has been accepted by the Buyer.
• The discounting company transfers an advance payment to the seller, which may be up to 95% of the invoice amount, after adjusting for the mark-up and related fees.
• After the discounting company receives payment from the buyer, the balance, if any, is transferred to the seller.

Essential notes on the services of Smart Finance:

• We provide funding for up to 95% of the invoice
• We make an offer in as much as 1 working day.
• We offer competitive mark-up spreads.
• We provide invoice financing for up to 120 days.
• We provide financing to clients who have loans from other financial institutions.