Key Benefits of Unum Credit’s Invoice Discounting
Turn your unpaid invoices into immediate cash with Unum Credit’s Invoice Discounting service. If slow-paying customers are holding your business back, this solution unlocks the cash tied up in those receivables, so you can meet your obligations and invest in new opportunities without waiting 3 months for payment.
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What is Invoice Discounting?
How Can You Use Invoice Discounting?
Invoice Discounting (also known as invoice financing) is a form of short-term borrowing against your outstanding invoices. Essentially, Unum Credit advances you a percentage of the invoice value right now, and you repay us once your customer pays that invoice in full (minus a small fee for the service). It’s a way of getting paid immediately for work you’ve already completed or goods you’ve already delivered. This is ideal for businesses that offer 30, 60, or 90-day payment terms to their clients and find themselves cash-strapped in the meantime.
Maintain Control & Confidentiality
With Unum Credit’s invoice discounting, you continue to manage your customer relationships. Unlike factoring, which sometimes involves the lender taking over collections, our discounting model lets you handle collections as usual. Your clients remit payment to your account (or a designated account in your name) – they need not even know you leveraged their invoice for financing. From your client’s perspective, nothing changes in the payment process.
Key Benefits of Unum’s Invoice Discounting
Private & Public Sector
Whether your debtor is a government department, a state-owned entity, or a private company, it’s fine by us. We provide funding on approved invoices from any creditworthy end-customer. You aren’t limited to only certain types of clients – diversity is okay, as long as the invoice is valid and expected to be paid.
Fast and Paperless
No need to prepare stacks of financial statements or endure a lengthy credit committee process. Our system is set up for speed. Apply online, upload minimal documentation (usually the invoice and proof of fulfillment), and we’ll do the rest. Many clients see funds in their account in under 48 hours from first contact.
Dedicated Support
We do more than advance funds – we help ensure the whole process goes smoothly. Our specialists will validate the invoice and even follow up with your customer to confirm approval if needed (discreetly, or in the background). This extra step gives you peace of mind that everything is in order. If any hiccups arise (say the client has a query on the invoice), we can assist with guidance on resolving it, because our interest is aligned: we both want that invoice paid on time.
Bridge the Gap
By using invoice discounting, you essentially eliminate the risk of a cash flow crunch due to slow payments. You don’t have to take on new debt for vague purposes – it’s a self-liquidating advance for a specific invoice. That means it’s one of the lower-risk ways to borrow: the transaction has a built-in exit when the invoice is paid. Additionally, our fees are straightforward and agreed upfront. No hidden costs will creep in. You’ll always know the cost of advancing a given invoice, so you can decide if it’s worth it for you.
When to Use Invoice Discounting
If you’ve ever secured a big order and then felt panic about how to fulfill it, PO Funding is the solution. South African SMEs often struggle with large orders because suppliers demand upfront payment, staff and operating costs accumulate, and any delays could jeopardize the deal. Our Purchase Order Funding then helps you.
Delayed Customer Payments
You delivered a product or service and invoiced a large client, but they’ll only pay you in 30, 60, or 90 days as per terms. Meanwhile, you have bills – salaries, rent, suppliers – that can’t wait that long. A bridge loan gives you the cash now, which you then repay when the client’s payment comes in.
Start of a New Project or Contract
You secured a valuable project that requires upfront expenses (buying materials, hiring contractors, etc.), yet the project’s payment schedule means you only get paid upon milestones or completion. Bridging finance provides the working capital to launch the project and carry those initial costs until you start billing and receiving payments.
No Need for Other Collateral
The beauty of invoice financing is that the invoice itself (and the creditworthiness of your debtor) provides the security. You typically don’t have to put up additional collateral like property. If you have valid invoices from reputable companies or government departments, you likely qualify. This makes invoice discounting accessible even if you don’t have substantial assets to secure a loan.
Flexible and As-Needed
Use invoice discounting only when it makes sense for you. You can choose which invoices to discount – for example, just the larger ones or those with the longest terms. It’s not an all-or-nothing arrangement. And you can often top-up with additional invoices if needed. You’re in control of how much funding to draw, up to your approved limit.