Standard Capital is a provider of various financial services. Some of the financial services offered by Standard Capital include debtors finance, trade finance, equipment finance, franchise finance, government grants, inventory finance and so on. Standard Capital's debtor finance service is very useful for those business units who want to raise working capital requirements against their large debtors book or against outstanding invoices.
Cash flow finance is a part of debtors finance services offered by Standard Capital. Cash flow finance provided by Standard Capital is a type of loan whereby a company can raise funds against all or some of its outstanding invoices. The financier buys either all or some of the receivables and pays the business upfront at a discount. In most cases, the company can obtain 70-90% of the total amount of the invoices from the financier. The balance is paid to the business when the debts have been paid, minus a fee for the service.
There are two types of cash flow finance services provided by Standard Capital which include full-service (also known as factoring) and co-operation service (invoice discounting). In factoring, the credit management and collection service is done by the financier including administration, confirmation, collection and regular reports whereas monthly ageing reports are completely outsourced. In invoice discounting service offered by Standard Capital, the credit management service is provided but the business still plays an active role in invoice collections.