This addresses liquidity constraints by buying invoices from suppliers at a discount. It creates financing for businesses in the manufacturing and export sectors through use of an invoice. The purchase of goods transaction by the buyer will provide a receipt to the seller acknowledging the receipt of the goods and the seller will issue an invoice which may be used for credit.
The typical transaction contains a buyer, usually a large company, a seller -typically an MSME- and the factoring facility created by INVITE Trust. Once a purchase of goods transaction has taken place the buyer will provide a receipt to the seller acknowledging the reception of the goods and the seller will issue an invoice. The factoring facility will buy these documents at a discount, acquiring the right to the payment of the transaction. Once the invoice is due the factoring facility will cash the invoice from funds from the buyer. The Window allows MSMEs receive immediate payment for goods or services they have delivered. It improves cashflow and enables the exporter to increase the number of export cycles (volume) as he receives his payment on an immediate basis as opposed to waiting for 90 or more days.
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