Edebex does not accept any invoices issued with a discount for cash payment. Indeed, our investor pre-finances an invoice based on its nominal amount. This means that the purchase price of an invoice (its nominal value minus the discount granted to our client) is calculated by taking into account the nominal value of this invoice. This discount, which is calculated according to the remaining delay before the due date and your debtor’s rating, constitutes the return for your investor. If we accepted invoices with cash discount, the investor’s return would not be guaranteed in cases in which the debtor decides to take advantage of the cash discount. This would deter investors from pre-financing as they would not achieve the fixed return.
A possible solution for your clients who never use the cash discount would be to issue their invoices without mentioning the cash discount and to put them online on the Edebex platform. Indeed, Edebex tries to eliminate the uncertainty of the cash discount for its users by offering a guaranteed pre-financing (given the acceptance of the debtor (rating >= 4/10) and, of course, a positive audit of the invoice). This allows you to optimize your cash flow since you are able to define your treasury plan with certainty and this plan no longer depends on the use of the cash discount by your clients.
However, our system not only provides certainty of a rapid pre-financing, but also an externalisation of the risk of late or non-payment as well as the invoice follow-up undertaken by our services. In addition, your client can benefit from a deferral of payment until the due date. That is why the costs for using Edebex, on average 4% of the invoice amount, can be compared to a cash discount in this context.