Innovative Nedbank commercial banking finance solution enables business growth

23-11-23 / Tau kaVodloza

Innovative Nedbank commercial banking finance solution enables business growth

Johannesburg - Are you feeling a cash flow pinch due to funds sitting in debtors and stock, even though your business is in a growth phase?

Nedbank Commercial Banking has an innovative finance offering, available as part of a comprehensive funding solution, that can help your business grow.

'Invoice discounting funds working capital shortages. It enables business growth by improving liquidity,' says Debbie Robinson, Nedbank Head of Sales, Debtor Management in Durban, KwaZulu-Natal (KZN). 'The client can trade optimally despite the challenges of funding a growing business.'

Through invoice discounting, a feature of the Nedbank Debtor Management (NDM) finance offering, clients can take advantage of bulk purchasing and early settlement discounts offered by some creditors. Thereby, clients can continue extending regular trade terms to debtors, instead of having to grant early settlement discounts because of the business experiencing cash flow constraints.

Robinson adds that invoice discounting enables clients to access the money debtors owe them, enhancing their cash flow. For example, clients can draw up to 80% against acceptable invoices, with the remaining 20% paid when the debtor settles the invoice.

Asked about benefits for the client, Robinson confirms that invoice discounting improves operational efficiencies. 'It is a flexible facility linked to the growth of the business, unlike an overdraft that is often limited to the security that the client provides,' she continues.

Clients can increase their bargaining power and negotiate settlement discounts with their suppliers, while having access to a dedicated team of debtor management specialists nationwide.

Robinson says that the team has recently rolled out a stock finance option linked to an ID facility. This helps clients with funding stock, and with their full trade cycle requirements.