Frequently Asked Questions

 
 

On this page you will find answers to most of your questions. Get it touch with us, if your question is not listed here, to receive a quote or to discuss your company's needs

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What collateral do you require?

Since factoring is not a loan, we do not require collateral. Factoring is the sale of an existing payment already owed to you by your buyer, hence no new loan is taken out.

What documents do you require?

  1. A filled application form, detailing which invoice(s) you wish to factor

  2. Copies of all previous invoices to the same buyer

  3. Copy of the contract against which the goods or services have been delivered

  4. A filled invoice ageing report

  5. A bank statement not older than 30 days

  6. Your full registration details from RDB.

What is the maximum amount you disburse?

We can disburse up to 70% of the value of the invoice.

What if the buyer doesn't pay?

We only offer what is called recourse factoring, i.e. where in cases the buyer does not pay after 180 days, you will be liable to cover our costs. This is different from non-recourse factoring, which we do not presently offer.

Can you take over the invoices that the buyer has been refusing to pay?

No, in cases where it is unlikely that the buyer will pay your invoice, we cannot buy it.

How do you disburse the money?

We can transfer the money to you either via cheque or bank transfer. We do not disburse cash.

How can I qualify?

You qualify if you are a registered business in Rwanda selling goods and services to creditworthy business clients, and you have a track record of being paid at least five times by these buyers.

How long does it take to receive an answer if my invoice will be factored or not?

Once all required complete documents have been submitted, you will receive a reply within five working days. If successful, we make the disbursement on the same day.

What are the costs?

We charge two fees for our services:

  1. A one-time origination fee of 1%

  2. A time-based fee linked to the length of time the invoice is outstanding and calculated on a pro rata basis. This fee is negotiable and depends on how big is the invoice, who your buyer is and how long you have been working with them.

I don't have contracts with my customers, can you still finance me?

At the moment, we require a written contract to enforce the payment claim. In some cases, a duly stamped purchasing order may be accepted instead, when combined with an accepted invoice.

Who collects the payments?

The cost of factoring is related to the length of time the payment is pending, so the quicker your buyer pays us, the less you pay. Furthermore, we require that you instruct your buyer to pay us directly, since after buying your invoice, we now legally own the payment. However, there may be cases where this is not possible and we try to find solutions in such cases. 

What if I work with other Banks, have a line of credit or an existing loan?

Some loan agreements or overdraft contracts restrict your ability to factor invoices to third parties. Check the loan agreement you signed with your bank to see if there are any such restrictions. If there is nothing in your loan agreement restricting factoring, and your satisfy our requirements, we can work with you.