Supply Chain Financing - Factoring

Name: Supply Chain Financing - Factoring
SKU: 8454817
Availability: InStoreOnly

MRP

Price

Inclusive of all taxes

Add to Cart

Continue to checkout

Send Inquiry

Supply Chain Financing through Factoring is a vital solution enabling banks and financial institutions to optimize their clients' cash flow and enhance their working capital. This product allows corporate customers to initiate invoice or cheque discounting seamlessly, with the flexibility of using either recourse or non-recourse discounting options. It facilitates the lodging of multiple invoices for discounting purposes, maintaining buyer-wise counterparty limits sourced directly from the Core Banking system. Each transaction undergoes a robust validation process to ensure compliance with limit checks and available balances, while also meticulously recording realization details for complete transparency. Additionally, this solution is engineered for seamless integration with Core Banking and Courier systems, enhancing operational efficiency. The process begins with corporate customers creating and submitting invoice discounting orders through a user-friendly client front-end. These orders can involve one or more invoices clubbed under a single request, which then prompts an internal 4-eye approval process before reaching the bank. The bank's side mirrors this diligence by employing a maker-checker mechanism to validate and approve the order prior to execution. Furthermore, the system provides clients with real-time updates regarding the status of their orders, enabling them to manage their cash flow effectively while retaining control and visibility over their transactions.

Key Features

Features	Description
Invoice Discounting	Flexibility to discount multiple invoices, enhancing cash flow.
4-Eye Approval Process	Ensures compliance and authorization at customer and bank levels.
Counterparty Limits	Buyer-wise limits sourced from the Core Banking system.
Integration	Seamless integration with Core Banking and Courier systems.
Real-time Status Updates	Customers can track their orders – pending and completed.
Recourse and Non-recourse Options	Choose between different discounting methods based on client needs.

Attributes	Description
Discounting Method	Recourse and Non-recourse options
Order Submission Process	User-friendly client front-end for submission and approval flows
Validation Process	System validates limit availability and compliance with tenor.
Order Tracking	Visibility into the status of submission, pending, and completed orders.
Record Management	Ability to close records on realizations and unpaid dues.
Courier Integration	Automated requests for physical invoice pickups.

*Disclaimer: The above description has been AI-generated and has not been audited or verified for accuracy. It is recommended to verify product details independently before making any purchasing decisions.

Product Reviews

Be the first to write a review

Review this product

Your Rating *Clear

Your Review *

Add an Image

How does the 4-eye approval process work in invoice discounting?

The 4-eye process requires a maker to create the invoice discounting order and a checker to review and approve it before submission to the bank, ensuring accuracy and compliance.

What happens if an invoice is unpaid on its due date?

If an invoice remains unpaid on the due date, the system will close the record by debiting the customer’s Operating Account.

Can customers cancel discount orders once submitted?

Yes, customers can cancel their discount orders before they are submitted to the bank for approval.

Is it possible to submit multiple invoices under one request?

Absolutely. Customers can submit multiple invoices under a single discounting order for streamlined processing.

What integrations does this factoring solution support?

The factoring solution supports integration with Core Banking as well as Courier systems for efficient management of transactions.

Incorporation Type
GST
GST Registration Date
Number of Employees
Import Export Code (IEC)
Year of Establishment
Nature of Business
GlobalLinker Member Since

Country Of Origin: India

Factoring

Enabling the bank’s customer to initiate Invoice/cheque discounting
Discounting can be with recourse or without recourse
Facility to lodge multiple invoices for discounting purposes
Maintaining Counterparty (buyer-wise) limits
Customer Limits will be sourced from Core Banking system
Validation of Limits and available balance
Recording realization details and closure of record
Recovering Interest, Commission etc.
Integration with Core Banking and Courier systems

Invoice Discounting – Order capture by Customer

Corporate customer creates and submit invoice discounting order through Client Front-end
Customer user to enter details of one or more invoices and club them under one order/request and submit it for bank review and approval.
The discount order capture can be a 4-eye process i.e., customer maker should create the record and customer checker should approve it.
Facility to checker to return the transaction to maker
After approval from the customer checker
A request should be sent to Courier for physical invoices pickup.
- The discount order should be then sent to Bank for review and approval.
- Customer should be able list and view discount orders.
Customer should be allowed to cancel discount order before submission to bank for approval.
Customer should also be able to view the status of records, both pending and completed with uptodate information

Order processing at bank

At bank side, the discount order should be first verified by bank maker and then should be approved by Bank checker.
Bank maker would then verify the data captured on the order with copy of invoice. Once verified, record moves to checker for approval.
When Bank checker approves the order, the order should be executed, and the bookings should be triggered.
System to validate the availability of discounting limit and compliance with tenor permitted
On approval, system to send details to Core Banking system for posting necessary accounting entries
The checker should be able to Approve, Reject or Return to bank maker.
Rejected records are permanently closed. Customer may reupload the invoice as a new record
Upon realization system to update and close the records
If unpaid on due date system to close the record by debit to Operating Account of the customer

Business Services