Advance on Invoice

The advance on invoice is an advance made by the bank to a client pending the settlement of an invoice. However, it is important here to ensure the quality of the ultimate payer.

Advantages

  • Reduced cash shortfalls resulting from a gap between the payment of received invoices and the collection of issued invoices
  • Quick payment to suppliers to take advantage of significant discounts
  • Self-amortization since the advance is repaid by the client's payment.

Characteristics

Company with a turnover <= 1 Billion

Maximum amount (million FCFA)

80% of the invoice amount before tax
Limited to 200 million FCFA

Duration

3 months renewable once

Interest rate (excl. tax)

From 12% to 14.5%

Documentation

For setting up the line

  • Headquarters location plan
  • Manager's CV
  • BIC form
  • Solvency report to be requested from the BIC
  • Patrimonial form
  • Client's request
  • Financial statements approved
  • Treasury plan
  • List of payees concerned by the requested line
  • Commitment point
  • Auditor's report (if legal requirement)
  • Copy of the ID card of the spouse if married under community of property or supporting document if married under separation of property

For each use of the line

  • Client's request expressing the need
  • Client's purchase order (in the absence of delivery note and invoice)
  • Delivery note or receipt of work duly notified by the sponsor
  • Invoices

Company with a turnover > 1 billion FCFA

  • Rate: [8 ; 12]
  • Duration: 04 months maximum
  • Amount: set according to the amount of the invoice
  • Repayment: outstanding and interest refunded at the time of repayment

  • Documents to provide:

    • Invoices
    • List of payees (selection of signatories);
    • Deadlines, maturities;
    • Ensure the existence of a real commercial relationship between the drawee and the assignor (commercial information, ...);
      NB: Family papers should be avoided (effect on the affairs of the same group) because sometimes there is no real commercial relationship (cavalry effects);
  • Guarantees: Domiciliation of the payment of the invoice; the CPS of the partners and others...(Depending on the categorization of the client and the quality of the drawee)