Invoice Discount Facility (IDF): This is a specialized revolving line of credit, extended to fund accounts receivable
and accommodate the customer’s continuous need for working capital pending receipt of payments.
- It is available to rapidly growing companies with corporate accounts in Sterling Bank and whose growth typically requires constant cash outlay
- The tenor is short and self-liquidating, usually not more than 90 days
- The borrower draws against the line as new accounts receivable are created
- Disbursement is limited to a maximum of 80% of the invoices
- Repayment is from collection of the accounts receivable on a continuous basis