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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.

Key Words

*Disclaimer: This 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.

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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



Banking & Finance Software

Supply Chain Financing

Factoring

Invoice Discounting

Corporate Financing

Cash Flow Optimization

Banking Solutions

Invoice Management

Financial Technology

Financial Services

Supply Chain Financing - Factoring

Inclusive of all taxes

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