In simple words exchange your unpaid invoices for immediate payment.
Though the term may sound complex, the concept is in fact straightforward. When your business delivers products or services to its customers on trade terms, you will receive payment at a later date. In the meantime, you raise invoices, which are account receivables on your Balance Sheet. However, these current assets signify a potential cash resource which at present remains idle.
In order to unlock cash flows against your unpaid invoices, HRE will assist you through our invoice discounting service. This is the sale of unpaid invoices at a discount to the face value, allowing your business to remain viable, competitive and profitable.
Receivables financing has a proven track record or helping businesses of all sizes access the much needed working capital to fund their growth.
By receiving funding from HRE, you:
- Avoid the hassle of waiting 30 to 90+ days for your invoices to be settled. You will now be able to meet your working capital needs to maintain your business operations whilst reducing creditor payment pressure.
- Improve your cash flow position, which allows you to negotiate agreeable settlement and bulk purchase discounts with your suppliers.
- Will be able to take on more business, which in turn will boost your turnover.
- Gain access to lower cost financing to fund your business.
- Increase your presence in domestic, regional and international markets.
HRE has successfully funded businesses in various sectors of the economy. There is no closed list of qualifying businesses, with some of our notable clients coming from the following sectors:
- Wholesale and retail FMCGs (Fast-moving consumer goods)
- Business services
- Government and Non-governmental organisations (NGOs)
- Domestic Receivables Financing (Invoice Discounting).
- International Receivables Financing – Both Import and Export Invoice Discounting to assist intra-African and international trade.
The benefit of invoice discounting is that you quickly turn your account receivables into cash assets and avoid having to wait extended periods of time or follow up with your customers for payment at the expense of your business operations.
If you are a new client, you will have to register with HRE. The registration process is seamless, and upon submitting your completed form and supporting documentation, we will make our assessment and notify you of your approval. Once registered and upon submission of qualifying receivables and supporting documentation, you will receive the funds in as little as 24hours.
HRE holds client confidentiality in the highest regard, and has in place secure systems to maintain the integrity of all client financial information uploaded onto our platform.