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invoice financing parameters

Max offer amount per invoice:

This sets the maximum amount of funds you want to deploy against one invoice

 

Max finance offered against one invoice:

This sets the maximum percentage of a single invoice that you (excluding other investors) wish to fund. This is calculated off the face value of the invoice.

 

Max days per financed:

This sets the maximum expected payment term of an invoice you wish to fund. The expected payment term includes the invoice terms (e.g. 60 days) and the additional days that a customer may take for late payment (e.g. an additional 15 days).

 

Risk band selection:

This sets which risk bands you would like to finance. You can choose from A+, A, B and C. Click here for more information on our risk bands. 

Interest rate per 30 days:

This is the 30-day return that you will receive for your funding based upon the tenure and risk band. Financing is calculated on a daily basis and so payments during a 30-day period are pro-rated.

 

Portfolio allocation

If you have opted to invest in Business Finance Loans and Invoice Financing, then you can choose how much of your funds are set aside for Invoice Financing and how much for Business Finance Loans. This is calculated on your total available funds and capital deployed.

This option ensures that you do not deploy more funds than planned in Invoice Financing.


Worked example:

Your settings are:
Max value per invoice: AED 20,000
Max percentage of a single invoice willing to fund: 50%
Max days: 90

Risk bands: A+, A and B (Risk band C unselected)

 

For a AED 30,000 A-rated risk band invoice where the Borrower is seeking AED 24,000 (80%), the maximum you would lend would be the lower of 50% x AED 30,000 (being AED 15,000) or AED 20,000.

 

For a AED 100,000 invoice where the Borrower is seeking AED 70,000 (70%) you would bid at your maximum rate per invoice of AED 20,000.

 

As the business is rated as an A risk band and is seeking finance for 90 days, the rate would be set at 0.95% per 30 days.