INVOICE DISCOUNTING

Unlock Immediate Cash‑Flow by Converting Your Invoices Into Working Capital

Invoice Discounting is one of the most powerful working capital solutions for businesses that sell on credit terms. Instead of waiting 30, 60, or 90 days for customers to pay, companies can convert their invoices into instant cash, ensuring smooth operations, timely supplier payments, and uninterrupted growth.

Amanex Group helps businesses secure bank‑approved invoice discounting limits with optimized structures, competitive pricing, and high approval probability — tailored to your turnover, customer profile, and financial behavior.

WHAT IS INVOICE DISCOUNTING?

Invoice Discounting is a short‑term financing facility where the bank provides immediate funds against your unpaid customer invoices.

You receive up to 80–90% of the invoice value upfront, and the remaining amount is released once the customer pays the bank.

Example:

Invoice Value: AED 100,000 Bank releases: AED 80,000 upfront Customer pays after 60 days Bank deducts fees and releases the balance

WHO IS INVOICE DISCOUNTING FOR?

This facility is ideal for businesses that offer credit terms to customers, including:

  • Trading companies
  • Manufacturers
  • Contractors
  • Logistics & supply chain companies
  • Service providers
  • E‑commerce sellers
  • Wholesalers & distributors
  • B2B businesses with recurring invoices

Any company with delayed customer payments benefits from invoice discounting.

KEY BENEFITS OF INVOICE DISCOUNTING

1. Instant Cash‑Flow

Convert invoices into cash within 24–48 hours.

2. No Collateral Required

Banks rely on the strength of your invoices, not your assets.

3. Supports Business Growth

Use funds for:

  • Inventory
  • Salaries
  • Supplier payments
  • Expansion
  • Operations

4. Improves Working Capital Cycle

No more waiting for customers to pay.

5. Confidential Facility

Your customers are not notified (in most cases).

6. Flexible & Revolving

As you raise new invoices, you can discount them again.

HOW INVOICE DISCOUNTING WORKS

Step 1 — You Raise an Invoice

You issue an invoice to your customer with 30–120 days credit terms.

Step 2 — Submit Invoice to Bank

Bank verifies the invoice and customer credibility.

Step 3 — Bank Releases Upfront Cash

Typically 70–90% of invoice value is released.

Step 4 — Customer Pays the Bank

Payment goes directly to the bank.

Step 5 — Bank Releases Balance

After deducting fees, the remaining amount is credited to you.

ELIGIBILITY CRITERIA

Banks typically require:

  • Monthly turnover: AED 150,000 – 300,000+
  • 6–12 months bank statements
  • Valid trade license
  • Clean AECB score
  • Stable cash‑flow
  • Reputable customers
  • VAT returns (if applicable)

DOCUMENTS REQUIRED

  • Trade License
  • MOA / Share Certificate
  • Passport, Visa, Emirates ID
  • 6–12 months bank statements
  • Customer invoices
  • Delivery notes / purchase orders
  • VAT returns
  • Financial statements
  • Customer contract (if applicable)

TYPES OF INVOICE DISCOUNTING

1. Recourse Invoice Discounting

You are responsible if the customer fails to pay.

Benefits:

  • Lower fees
  • Fast approval

2. Non‑Recourse Invoice Discounting

Bank takes the risk of customer non‑payment.

Benefits:

  • Zero risk for your business
  • Ideal for high‑value invoices

3. Confidential Invoice Discounting

Your customers are not informed.

Benefits:

  • Maintains business relationships
  • Fully private

4. Selective Invoice Discounting

You choose which invoices to discount.

Benefits:

  • Full flexibility
  • No long‑term commitment

USE CASES FOR INVOICE DISCOUNTING

  • Paying suppliers
  • Purchasing inventory
  • Managing delayed customer payments
  • Handling seasonal demand
  • Covering operational expenses
  • Executing contracts
  • Expanding business capacity

EXAMPLE SCENARIO

A logistics company with AED 500,000 monthly turnover issues invoices with 60‑day payment terms.

They secure:

  • AED 300,000 Invoice Discounting Limit

This allows them to:

  • Pay suppliers on time
  • Manage fuel & operational costs
  • Expand fleet capacity
  • Maintain smooth cash‑flow

INVOICE DISCOUNTING VS BUSINESS LOAN

FeatureInvoice DiscountingBusiness Loan
CollateralNot requiredOptional
SpeedFastModerate
FlexibilityHighMedium
PurposeCash‑flowExpansion
RiskLowMedium
Ideal ForCredit‑based businessesLong‑term projects

HOW AMANEX GROUP SUPPORTS YOU

1. Eligibility Assessment

We analyze your turnover, customer profile, and invoice cycle.

2. Facility Structuring

We determine the ideal discounting limit and structure.

3. Documentation Preparation

We prepare:

  • Financial summary
  • Business profile
  • Invoice justification
  • Compliance documents

4. Bank Submission

We submit your file to multiple banks for competitive offers.

5. Negotiation

We negotiate:

  • Higher limits
  • Lower discounting fees
  • Better repayment terms

6. Approval & Activation

We coordinate with the bank until the facility is activated.

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