Create a Receivables Discounting Product
Receivables discounting is a revolving working capital facility where a company borrows against its accounts receivable ledger, with the receivables serving as collateral, while retaining control of collections (sometimes called AR financing or borrowing base financing)
Use case: Client has a few large invoices and need immediate cash without financing your entire receivables book.
In order to create a Receivables Discounting Product you need to:
Create a Product Group and Structure for a Invoice Discounting Product
Apply the created Product to a Deal
Product Group
Product Groups work as your product templates. Once you set up a specific Product, it can be used for multiple programmes and clients.
Name | Unique and recognisable for your Team |
Type | Loan |
Anchor | Seller |
Instrument | Invoice |
Description | A summary of what the Product Group represents |
Product Structures
Navigate to the Product Management Section -> Product Structures
Click on the “Add New Structure” button
Product Structure
Product Structures define the workflows of your products. They are specified after the product group, as the structure and workflows within it directly influence the product you select.
Similarly to Product Groups they work as templates and can be assigned to multiple clients/ Deals.
Name | Receivables Discounting |
Product Group | Choose the Product Group you just created |
Recourse to supplier | Yes |
Silent/Undisclosed | Typically, yes |
Workflow Settings
Instrument Upload/ Submission by | Seller |
Payer approval required | No |
Repayment by | Seller |
Repayment Reconciliation By | Admin or Deal Manager (Funder) |
Finance requested by | Seller |