Invoice discounting is a well-established means of providing funding to SMEs in a secured and risk-mitigated manner. The invoice discounting facility has an investment allocation to Africa of USD 30 million, invested in financial institutions in facility amounts ranging between USD 1 and USD 10 million. The facility has structural flexibility to support invoice discounting, factoring and supply chain financing, and has a Pan-African mandate.
The facility provides no funding directly to SMEs. All the funding is provided to financial institutions, which can be banks and other types of deposit-taking, NBFI and speciality finance institutions. The facility can invest in financial institutions with established invoice discounting programmes, as well as institutions expanding their product mix into these areas. The facility is supported by a secure on-line cloud-based system deployed globally.