PURCHASE AND SHOPPING LOAN

Fast. Simple. Secure.

Invoice Finance / Accounts Receivable

Sometimes called Invoice Finance, Debtor Finance or Accounts Receivable Finance, this is an extremely effective way of unlocking cash that’s already been invoiced to your clients. It’s like a cash advance based on money you’ve already earned from your customers, without having to wait for the traditional 30, 60 or even 90 day payment periods.

How do these loans work?

In simple terms, a lender considers the invoices or monies you have owing as an asset. They’ll lend you a percentage of the money that’s owed to you, then pay you the remaining balance once they’ve collected the invoice, less a small percentage

Here’s an example

Step One

A lender could pay you 80% of a single invoice or the total balance of your combined invoices.

Step Two

The remaining 20% is paid to you once your client has paid the invoice.

Step Three

Finally, just less a ‘factor fee’ of 1 to 3%.

Flexible & fast

This type of financing is a relatively quick and flexible way for your business to maintain cash flow and has many benefits when compared to other bank loans or lines of credit.

Almost immediate access to funds once an invoice has been issued
No other collateral is required
No repayment schedules
Don’t waste time chasing unpaid debts
Manage cash flow
Plan for seasonal and day-to-day fluctuations

Purchase Order (P.O.) Financing / Trade Financing

Alop Microfinance offers P.O. financing and trade financing to clients who need to purchase goods or secure the resources to fulfill an order.

Some circumstances that may require P.O./trade financing are as follows:

When you receive an unexpectedly large order requiring immediate production
When you do not have sufficient capital to fulfill a purchase order
When you need short-term operating capital while waiting for a start shipping date with the merchandise ready for shipment
When you want to negotiate discounts on purchase of raw materials by paying in advance

Benefits of P.O. financing and trade financing include the following:

Injection of quick working capital to realize a sales opportunity
Prevention of potential loss of future business opportunities
Retention of vital business information by maintaining respective anonymity of your vendor and buyer
Facilitation of the import of raw materials and export of finished goods

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Feel free to contact us any time. we will get to you as soon as we can!

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