Factoring or Invoice Finance enables corporates to access additional liquidity when trading on open account terms, selling individual trade receivables on a true sale basis directly to a funder, decreasing Days Sales Outstanding (DSO) while mitigating customer payment risk. Demica’s Receivables Finance platform automates the selection of approved debtors, manages trade credit insurance limits and provides a single dashboard to manage & report on multiple independent programmes with different funders for each jurisdiction if required.
While previously an SME product, the combination of simplicity, significant working capital benefits and potentially off-balance sheet financing has made invoice discounting increasingly popular across a wide range of sectors for large corporates.
In addition to working capital benefits, clients are increasingly using it to improve their own customer relationships by offering extended payment terms to drive increased sales, and then mitigating the impact of this by discounting the receivables.
With over 2,000 companies financed with Factoring or Invoice Finance, using Demica’s platform, the company has extensive experience in establishing and managing invoice discounting programmes. The Demica platform provides a valuable bank agnostic solution that works seamlessly with other forms of financing, enabling single & multi-funder capabilities resulting in a significant working capital benefit for corporates.
Transactions can be funded by our clients’ relationship banks as well as a wide range of Demica’s Investor Partners providing flexible funding at the lowest cost of capital.
“Demica has developed a market leading platform that enabled us to launch new solutions to our clients including Invoice Finance and Factoring. Demica provided advice, support and the technology to position us as market leader”
"Demica facilitated the execution of our global receivables programme, enabling us to integrate with their technology platform and consolidate our group receivables through one provider. Demica also acted as placement agent, sourcing financing from their investment partners"
Managing Director - Working Capital Solutions
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