Invoice Financing

Invoice Financing

Invoice financing is a type of short-term financing where the suppliers can finance receivables using their confirmed invoices. CB Bank provides financing for the open account sales of the supplier (“Borrower”) by advancing funds prior to receipt of proceeds from the buyer on invoice due date.

1. Buyer issues purchase order 4. Bank verifies and approves the invoice with buyer
2. Supplier deliver goods and issues invoice 5. Bank funds early payment to supplier
3. Supplier requests financing for early payment 6. Buyer makes payment on invoice due date
Required Documents
  • CB Bank Invoice Financing Application Form
  • Supplier’s Business Profile/Background
  • Past Sales Contract & Invoices between supplier and buyer
  • Certificate of Incorporation and Company Extract from DICA or Business License
  • Financial Report for 2 years
  • Income Tax & Commercial Tax Slips Last 2 years
Eligibility
  • The supplier has a good relationship and satisfactory track record with large corporate buyer for the past 6 months.
  • Must have a minimum 1-year business operation in the respective industry.
  • Company license or business license.
Features
  • Tenor – up to 180 days
  • Margin of finance – up to 80% of invoice amount

*Less application processing time (unlike traditional loan), low rates and charges
Benefits to Supplier
  • Able to get immediate working capital
  • Able to offer extended credit terms to the buyers
  • Increased sales due to increased cash flow
Benefits to Buyer
  • Possible to negotiate and extend Days Payable Outstanding (DPO)
  • Improved cash conversion cycle
  • Improved stability of the supply chain